The sign for the UK headquarters of the Swiss banking group UBS after it was announced that unauthorised trades by an investment banker had cost the bank 1.3 billion GBP on September 15, 2011 in London, England. Police have arrested at 31 year old man in connection with the rogue trading whilst shares in UBS have fallen sharply on the news. (Photo by Oli Scarff/Getty Images)
WASHINGTON (AP) - The Justice Department says an international investment bank will pay more than $1.5 billion in penalties in three nations to resolve charges of trying to manipulate an interest rate used as a benchmark in global banking transactions.
Attorney General Eric Holder says UBS Securities Japan Co. Ltd., will plead guilty to felony wire fraud and admit to attempting to manipulate the London Interbank Offered Rate.
Two former UBS senior traders will be charged with conspiracy, including one also charged with wire fraud in New York federal court.
USB Japan will pay $100 million; its parent, USB AG in Zurich, will pay another $400 million. Another billion dollars in fines will go to the U.S. Commodity Futures Trading Commission, the United Kingdom Financial Services Authority, and the Swiss Financial Market Authority.
(Copyright 2012 The Associated Press. All rights reserved.)