UBS reaches immunity deal with EU over Libor: WSJ

Fri Nov 22, 2013 12:58am EST

People walk past a branch office of Swiss bank UBS in Zurich October 29, 2013. REUTERS/Arnd Wiegmann

People walk past a branch office of Swiss bank UBS in Zurich October 29, 2013.

Credit: Reuters/Arnd Wiegmann

(Reuters) - UBS AG (UBSN.VX) has reached an immunity deal with European Union authorities that will protect the Swiss bank from further penalties for alleged manipulation of key interest rates, the Wall Street Journal reported, citing people familiar with the matter.

Under the arrangement, UBS is rewarded for cooperating with investigators and turning over information about other banks, the Journal reported.

UBS has been granted immunity in a case relating to efforts to manipulate the London interbank offered rate, or Libor, according to WSJ. (link.reuters.com/gym84v)

Authorities in the United States, Britain and elsewhere have so far fined UBS, Royal Bank of Scotland (RBS.L), Barclays (BARC.L), Rabobank RABO.UL and broker ICAP (IAP.L) $3.7 billion for manipulating rates.

The Libor and its European cousin (Euribor) are used to price hundreds of trillions of dollars in assets, from mortgages to derivatives.

(Reporting by Sakthi Prasad in Bangalore; Editing by Gopakumar Warrier)

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Comments (1)
breezinthru wrote:
If all of the other players went to prison for a very long time over this, immunity for the UBS players would be worth it. The American players should be vigorously tried under RICO laws.

This LIBOR fiasco demonstrates that corporations are indeed NOT people. Bad behavior by the largest corporations tends to be punished by fines, creating the illusion of justice, allowing the human bad actors to escape lengthy prison time that might serve as a deterrent to the bad behavior of others.

Nov 22, 2013 6:59am EST  --  Report as abuse
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