Libor manipulation is rearing its ugly head again. In the latest infraction, UBS will pay $1 billion to settle allegations that it manipulated Libor, according to various reports.
The Financial Times and other publications reported Thursday that the news about UBS’ settlement will likely be made public on Monday.
As it stands now, “up to 10 authorities around the world are investigating potential manipulation of the rate in a probe that has embroiled around 20 banks and interdealer brokers,” the Financial Times reported. “The first arrests in the investigation were made this week by the U.K. authorities. One of the arrested men, Tom Hayes, used to work for UBS.”
UBS’ settlement is expected to involve four regulators, the U.S. Department of Justice, the U.S. Commodity Futures Trading Commission, the U.K. Financial Services Authority and the Swiss regulator FINMA, which is UBS’ primary supervisor, according to the Financial Times.
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All four are expected to receive some sort of monetary settlement–although FINMA cannot extract fines, it can demand that companies give up ill-gotten gains, the Times reported.