higher without that leniency.
Some clues to UBS's alleged central role in the Libor conspiracy were included in documents filed earlier this year by the Canadian Competition Bureau, which investigates anti-competitive activity.
The documents describe how a "cooperating party" tried to artificially move yen Libor. UBS is the cooperating bank, people familiar with the situation have said. Those documents allege that a trader at the bank – called "Trader A" – contacted traders at four other banks. On one occasion, "Trader A" instructed a trader at another bank on what Libor submission to make.
It is unclear if UBS will resolve the Canadian probe as part of the imminent settlement.
Authorities are also investigating the actions of individuals. This week British police and anti-fraud officers made the first arrests in connection to the Libor probe, detaining a former trader and two other men, sources said. One of those arrested was former UBS and Citigroup trader Thomas Hayes, according to a source familiar with the situation. The two others worked at interdealer broker RP Martin, according to a separate source.
TORRID TIME FOR UBS
The fine will mark another blow to UBS, which has had a tough 18 months after suffering a $2.3-billion loss in a rogue trading scandal, management upheaval and thousands of job cuts.
"I'm not sure how much more reputational damage can be done to UBS," said Chris Wheeler, analyst at Mediobanca in London. "They are rebuilding that slowly, but it won't help the wealth management business when you see this as a headline."
Banks are keen to put such fines behind them as they attempt to rebuild credibility among politicians, the general public and investors following the financial crisis which forced taxpayers to bail out the banking system.
But the fresh spate of probes and settlements are putting banks' malpractice back to the forefront.
HSBC on Tuesday reached a $1.92 billion settlement with U.S. authorities over money laundering, the highest ever fine on a bank, a day after another London-based bank, Standard Chartered, agreed to pay $327 million for violating U.S. Sanctions against Iran, Sudan and