UBS faces $1 billion fine for Libor rigging
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 other states, adding to an earlier $340 million it paid in a related case.
Deutsche Bank, Germany's flagship lender, was raided on Wednesday by about 500 German tax inspectors and police, who arrested five staff in a probe linked to a tax scam involving the trading of carbon permits.
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