New York Attorney General Barbara D. Underwood said Friday that UBS signed off on a $68 million, multi-state settlement concerning manipulation of the London Interbank Offered Rate, used as the benchmark interest rate worldwide.
The news comes about five months after Citigroup agreed to pay 42 states $100 million to resolve a similar probe.
“Manipulative or fraudulent conduct that undermines the integrity of our financial markets will not be tolerated,” according to Underwood. “Our office is committed to holding financial institutions accountable for their misconduct.”
The attorneys general from 39 states and the District of Columbia say UBS “misrepresented the integrity of the Libor benchmark by concealing, misrepresenting and failing to disclose that UBS at times made [U.S. dollar] Libor submissions to avoid negative publicity and protect the reputation of the bank.”
In addition, the firm made Japanese yen Libor submissions to benefit its derivative trading positions, according a statement from Underwood.