UBS to Plead Guilty on Libor, Settle Currency Probe With Fed

[kpete]

Source: Bloomberg

UBS Group AG will pay $545 million to settle U.S. investigations into its role in manipulating currency and interest rates, removing two of the bank’s biggest legal hurdles.

The lender’s main unit, UBS AG, will plead guilty to fraud for manipulating benchmark interest rates and pay $203 million in fines after the Swiss bank violated an agreement that had allowed it to avoid prosecution, UBS said in a statement Wednesday.

In the currency case, UBS said it will pay $342 million to the Federal Reserve, which regulates foreign banks, and undertake remedial measures. It won immunity for cooperating in a parallel antitrust probe, sparing the bank possible fines and felony charges on that score.

Four other global banks are expected to announce U.S. settlements Wednesday over manipulating foreign exchange rates, people with knowledge of the discussions have said. Citigroup Inc., JPMorgan Chase & Co., Barclays Plc and Royal Bank of Scotland Group Plc will probably enter pleas related to antitrust violations, the people said.

Read more: http://www.bloomberg.com/news/articles/2015-05-20/ubs-to-plead-guilty-on-libor-fined-by-fed-in-currency-probe

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UBS Pleads Guilty to Biggest Financial Scam in History - 4 More Banks to Follow Today
http://www.dailykos.com/story/2015/05/20/1386140/-UBS-Pleads-Guilty-to-Biggest-Financial-Scam-in-History-4-More-Banks-to-Follow-Tomorrow

[cstanleytech]

1. So, another pittance payment being deceptively presented as a "settlement" but in reality

no one involved really will be punished and the companies still probably made far more than they will have had to pay with this fine?

[erronis]

2. Just "the cost of doing business"

I'm in the middle of reading "The Big Short" by Michael Lewis. The stench from the top offices in these big banks, insurance companies, markets gets stronger and stronger as you go up the elevator.

Yet only the lower levels will need to spend time in a bunk not of their choosing.

Slam one or two of the top officers into the clink from each company. All of a sudden it might start smelling like fresh air. "You want to lead this company, this department? You better make sure your activities are squeaky clean."

[PSPS]

3. As usual, a meaningless "cost of busines" vigorish/fine but no jail.

[Kelvin Mace]

4. Yet nobody goes to jail

The problem with your average mugger/bank robber seems to be that they need to steal WAY more if they expect to stay out of prison.

[d_legendary1]

5. Helps if you have a congressman or two in your pocket as well

Can't go to prison if they make up the rules for banking (and by banking I mean swindling).

[hughee99]

6. Exactly! If it was such a "brazen display of collusion" which they knew was illegal,

it shouldn't be too difficult to at least prosecute the specific people involved.

[Kelvin Mace]

7. "Unacceptable conduct"

Obviously not THAT unacceptable. Apparently "acceptable" provided the right "fees" are paid.