Just when you thought the world’s confidence in banks couldn’t get any lower, another one decides to jump into the mud puddle of fraud and roll around a little bit. This time it’s UBS AG, a large Swiss bank, which agreed Wednesday to pay $1.5 billion in fines for its role in a scheme to manipulate the London interbank offered rate (Libor).
Libor is the daily calculated average interest rate that international banks charge each other for short-term loans. Barclays PLC, of the U.K., was the first bank to settle over the rate manipulation scandal, making UBS the second. It will pay its $1.5 billion to regulators in the U.S., U.K. and Switzerland.