UBS Said to Face $1.6 Billion Libor Penalty

“UBS AG (UBSN) is set to pay as much as $1.6 billion to settle claims of Libor manipulation by the U.S. Justice Department, the Commodity Futures Trading Commission, the U.K. Financial Services Authority and the Swiss Financial Market Supervisory Authority, said a person familiar with the probes.

The announcement could come by tomorrow, said the person, who asked not to be identified because they aren’t authorized to speak publicly about the matter. The $1.6 billion figure would be more than three times the 290 million pounds ($469 million) that Barclays Plc (BARC) agreed to pay last June to settle allegations that its employees conspired to manipulate theLondon interbank offered rate, which is used in bank borrowing.

As part of the case, U.S. prosecutors are planning to file charges against multiple bankers associated with UBS’s rigging of Tokyo interbank lending rates, according to another person with knowledge of the matter. The charges would be the first brought by the Department of Justice against individuals alleged to have manipulated Libor and comparable lending rates in Europe and Japan.”

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