Wednesday, December 19, 2012

BREAKING: Two Former UBS Traders Face Felony Charges, Prosecutors Say


Two former UBS AG (UBSN) traders face felony charges for their alleged roles in the rigging of a key global interest rate, the U.S. Justice Department said. 


















Tom Alexander William Hayes and Roger Darin were charged with conspiracy in a criminal complaint unsealed today, the Justice Department said. Hayes also was charged with wire fraud and a price-fixing violation for activity with another bank aimed at manipulating the London Interbank Offered Rate, the department said.

“Make no mistake, for UBS traders, the manipulation of Libor was about getting rich,” Assistant Attorney General Lanny Breuer, the head of the Justice Department’s criminal division, said a news conference in Washington.

UBS was ordered to pay about $1.5 billion to U.S., U.K. and Swiss regulators for trying to rig global interest rates, including Libor, over a six-year period. Regulators found that traders at the Zurich-based bank made more than 2,000 requests to its own rate submitters, traders at other banks and brokers to manipulate rate submissions through 2010.

To contact the reporter on this story: Phil Mattingly in Washington at pmattingly@bloomberg.net
 
To contact the editor responsible for this story: Maura Reynolds at mreynolds34@bloomberg.net

Source: http://www.bloomberg.com/news/2012-12-19/two-former-ubs-traders-face-felony-charges-prosecutors-say-1-.html 

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