Maryland and D.C. are among the 40 states that just reached a $68 million settlement with UBS over the Swiss bank’s alleged manipulation of interest rates.
UBS was accused of manipulating the London Interbank Offered Rate (LIBOR), a benchmark interest rate that impacts financial institutions around the globe.
Futures, options, swaps and other derivative financial instruments on exchanges worldwide are often settled based on the benchmark. And mortgages, credit cards, student loans and other lending products often use LIBOR as a reference rate.
The attorneys general – including Maryland Attorney General Brian Frosh and D.C. Attorney General Karl Racine – accused UBS of failing to disclose that some of its LIBOR submissions were about avoiding negative publicity and protecting the bank’s reputation.
Specifically, the settlement accuses UBS of directing its team to make LIBOR recommendations in “the middle of the pack” out of concerns that, if UBS submitted higher LIBOR…Read the full story from the Washington Business Journal.