News Summary: UBS to pay $1.5B over LIBOR probe

News Summary: Swiss bank UBS to pay $1.5B over LIBOR rate-rigging probe; 2 traders charged

Associated Press

THE PUNISHMENT: Swiss bank UBS will pay $1.5 billion in a settlement with U.S., British and Swiss regulators for trying to rig a key interest rate. Two traders have also been charged with conspiracy, and the bank's Japan unit will plead guilty to felony wire fraud in the U.S.

THE RATE: The rate in question, the London Interbank Offered Rate, or LIBOR, is used to price trillions of dollars in contracts worldwide, including mortgages and credit cards.

THE SCANDAL: Other big global banks are also being investigated for rigging the same market. Britain's Barclays settled with regulators in June.

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