UBS faces $1bn LIBOR fine - reports

Swiss bank UBS is expected to receive a $1bn fine, to settle LIBOR manipulation allegations, according to reports.

The fine will be a new record settlement over LIBOR, beating the penalty handed out to Barclays in June, who paid $450m after breaching rules. The total amount, about £620m, is expected to be a combined penalty from US and UK regulators, and according to reports will be confirmed early next week. Last month the FSA fined the Swiss bank £29.7m for failing to prevent large scale unauthorised trading which lost the bank over $2bn. The FSA said in a statement that UBS' systems and controls had failed to prevent trader Kweku Adoboli racking up $2.3bn of losses.