Swiss bank UBS pays $545mln to settle foreign exchange probe

PanARMENIAN.Net - Swiss bank UBS has paid U.S. authorities a total of $545mln to settle an investigation into the manipulation of foreign exchange rates, BBC News reports.

The total includes a $203mln fine after UBS pleaded guilty to a charge it rigged Libor benchmark interest rates.

U.S. and UK authorities are expected to hand out penalties to major banks totaling about $5bn related to the foreign exchange investigation.

Details of these settlements are expected to be announced later.

UBS said it had settled with the U.S. Department of Justice, the U.S. Federal Reserve and the Connecticut Department of Banking.

In 2012, the bank reached a non-prosecution agreement with the U.S. Department of Justice over the Libor scandal.

However, this was revoked by the department. As a result, UBS has agreed to plead guilty to one count of wire fraud, pay the $203mln fine and accept a three-year probation period.

UBS said the Fed and Connecticut Department of Banking had found that the bank "engaged in unsafe and unsound business practices" relating to its foreign exchange business.

As a result, UBS is paying a $342mln penalty to the Fed and has agreed to undertake a series of "remedial measures".

In a statement, UBS said: "The conduct of a small number of employees was unacceptable and we have taken appropriate disciplinary actions."