If that doesnt put to rest the arguments by the anti-Dodd-Frank lot who argue financial regulation is getting stifling, nothing ever will since the flagrant and repeated violations by UBS make it clear regulations, to the extent they were in place, were easily circumvented. As for oversight within the bank, the Libor investigations show UBS traders were regularly paying brokers as much as 15,000 pounds a quarter to manipulate ratesthe UK FSA probe said at least 45 bank employees including managers knew of the practice, and around 70 more people were included in open chats and messages on manipulating Libor.
Nor are the violations restricted to UBS. If UBS paid a massive $1.5 billion as a fine, HSBC paid an even higher $1.92 billion fine (given HSBCs bigger book, though, this was 8.5% of FY11 pre-tax profit) for money-laundering activities, Standard Chartered paid $667 million for violating US sanctions to route payments to/from Iran, ING paid $619 million for the same violations, Goldman Sachs paid $577 million for its role in selling toxic derivatives, Credit Suisse $536 million for Iran sanctions, ABN Amro paid $500 million for the same crime the UBS probe, investigators say, is likely to rope in another 8-10 banks since such large manipulation couldnt have been done by UBS alone. Though Standard Chartereds India back office got mentioned in the probe on routing Iran funds, and HSBCs India back office came under the scanner for money laundering activities, it is curious that Indian authorities dont seem to have noticed anything untoward in the local activities of these banks.