UBS is one of a score of banks to settle private litigation in the U.S. accusing them of rigging the interest rate benchmark. The settlement didn’t come for free though.
UBS agreed to pay $14 million to settle litigation brought privately by U.S. investors, «Reuters» reported. Switzerland’s largest lender was one of 10 banks accused of having rigged the Isdafix index, which is used to price swap transactions, commercial real estate mortgages and structured debt securities.
UBS denied wrongdoing, «Reuters» said in the report. The bank wasn’t alone to pay up though. HSBC forked out a similar amount, boosting the total payout from 10 settling banks to $408.5 million.
Credit Suisse Had to Pay More
U.S. banks Goldman Sachs, J.P. Morgan, Bank of America, Citigroup, the U.K.’s Barclays and RBC banks as well as Deutsche Bank had settled litigation earlier and paid significantly more than UBS and HSBC. Credit Suisse, the arch rival of UBS, paid $50 million in its settlement.
Four banks are still due to reach a settlement: BNP Paribas, Morgan Stanley, Wells Fargo and Nomura of Japan.
Overshadowed by Libor Scandal
The Isdafix rigging was overshadowed by the much bigger libor scandal. The Swiss competition commission still is investigating the latter.
