UBS has come forward to regulators and disclosed that it colluded with other banks to rig the London interbank offered rate, also known as Libor.  Libor is the average interest rate that leading banks in London charge when lending to other banks.  That number is used to establish interest rates elsewhere and can affect interest-rate derivatives.  Although lenders are not supposed to know what other institutions are submitting in advance, UBS said that it and other banks colluded in reporting their interest rates, allowing them to influence the London interbank offered rate.

By coming forward, UBS is likely to receive greater leniency than other competitors who were also involved.  According to UBS’s disclosure, HSBC Holdings Plc, Royal Bank of Scotland Group Plc, Deutsche Bank AG, JPMorgan, Citigroup, ICAP Plc, and RP Martin Holdings Ltd were all part of the scheme.

Read the entire article, “UBS Turning Whistleblower in Libor Probe Puts Pressure on Rivals”