UBS Japan fined US$100 million over LIBOR fixing

US says UBS traders wanted to get rich quick.

A US district court in Hartford, Connecticut ordered UBS Securities Japan Company, a UBS unit in Japan, to pay a US$100 million criminal fine after the company pleaded guilty to wire fraud in connection with its role in the manipulation of the LIBOR benchmark interest rate.

US Department of Justice prosecutors accused UBS Securities Japan of scheming from November 2006 to August 2009 to manipulate yen LIBOR to benefit a senior trader's trading positions.

More than a dozen banks and brokerage firms were investigated worldwide over alleged LIBOR manipulation. Barclays Plc and Royal Bank of Scotland Group Plc have also reached settlements with US authorities.

The fine imposed on UBS is part of the bank’s global settlement, and was outlined in a joint sentencing recommendation on Sept. 12 by the Justice Department and UBS Securities Japan.

The penalty was approved by US District Judge Robert Chatigny in Hartford, Connecticut. UBS has offices in Stamford, Connecticut.