Thomson Reuters News & Insight
Featured Content from WESTLAW
Beginning in June, Thomson Reuters News & Insight content will be available exclusively on WestlawNext®, as part of its Practitioner Insights offering. On June 21, the Thomson Reuters News & Insight website, iPhone® app and newsletters will be discontinued. See Frequently Asked Questions to learn more.

Securities Law

  •  
  •  

A traffic sign is seen in front of an office building of Swiss bank UBS in Zurich. REUTERS Arnd Wiegmann

Factbox: UBS fined $1.5 billion over Libor

12/19/2012 COMMENTS (0)

By David Cutler 

Dec 19 (Reuters) - Swiss bank UBS was fined $1.5 billion to settle charges of rigging the Libor benchmark rate, the second biggest fine ever on a global bank and the second big fine over Libor manipulation. Britain's Barclays was fined $450 million in June for rigging the rate. Three of the largest four fines ever handed out to banks have been in the last two weeks, showing that authorities are penalizing firms more heavily. HSBC last week agreed to pay a record $1.92 billion after being accused by U.S. prosecutors of failing to enforce rules designed to prevent money laundering. The following lists fines imposed on leading banks. 

YEARBANKFINE (in millions)REASONREGULATOR
2012HSBC1,920 Money laundering lapsesDOJ
2012UBS1,500Libor manipulationDOJ
2009UBS780 Aiding tax fraudDOJ
2012StanChart667Anti sanctionsOFAC/DOJ/MORE
2012ING619Anti sanctionsOFAC
2010Goldman550Misleading investorsFSA/SEC
2009C.Suisse536Anti sanctionsOFAC
2010ABN Amro500Anti sanctionsOFAC
2012Barclays451Libor manipulationDOJ/CFTC/FSA
2009Lloyds 350Anti sanctionsOFAC/DOJ
2010Barclays298Anti sanctionsDOJ/OFAC
2012JP Morgan297 RMBS offeringSEC
2011Citi285Misleading CDO investorsSEC
2011JP Morgan228Muni bond riggingSEC
2011UBS160Muni bond riggingSEC
2011JP Morgan154Misleading investors SEC
2010BofA150 Disclosing Merrill bonusesSEC
2011Wachovia148Muni bond riggingSEC
2010BofA137Muni bond riggingSEC
2003JP Morgan135EnronSEC
2012Mizuho128Misleading CDO investorsSEC

 

GUIDE TO BANKING SCANDALS: 

Libor - The suspected rigging of the London interbank offered rate (Libor), an interest rate used in contracts worth trillions of dollars globally. 

Anti sanctions - Illegally hiding transactions with Iran and other countries, violating U.S. sanctions. 

Muni-bond-rigging - Conspiring to deceive U.S. cities and towns by operating a scheme to rig bids to invest municipal bond proceeds. 

CDO - Collateralized debt obligation tied to the U.S. housing market 

RMBS offering - Misleading investors in the sale of risky mortgage bonds or residential mortgage-backed securities. 

Enron - JP Morgan was fined for its role in the defunct Enron Corp's manipulation of its financial statements. 

Merrill - Bank of America was fined for failing to disclose properly employee bonuses and financial losses at Merrill Lynch before shareholders approved the companies' merger in 2008. 

NOTES: DOJ - U.S. Department of Justice OFAC - U.S. Office of Foreign Assets Control FSA - UK Financial Services Authority SEC - U.S. Securities and Exchange Commission

Follow us on Twitter @ReutersLegal | Like us on Facebook  


Register or log in to comment.

© 2013 Thomson Reuters