UBS pays $1.46 billion over Libor rigging

UBS will pay a fine of SFr$1.4 billion (A$1.46 billion) to settle claims it manipulated the key Libor benchmark interest rate, and two UBS traders face criminal charges.

The Financial Times said the charges were the first to be brought in the rate-rigging saga that is enveloping several European banks.

Tokyo-based Tom Hayes and Switzerland-based Roger Darin face conspiracy charges over the rigging, and Hayes has reportedly also been charged with fraud and antitrust violations.

The Financial Times reports: "From late 2006 to August 2009, prosecutors allege, Mr Hayes sought to manipulate the yen rate at least 335 of 738 trading days and at times almost daily."

US assistant attorney-general Lanny Breuer said the alleged rate-rigging scheme was "epic in scale."

Confirmation of UBS's fine comes less than six months after revelations that Barclays would pay a US$450 million (A$427 million) fine for rigging Libor.

Libor, the London InterBank Offered Rate, is the benchmark rate for banks borrowing from each other and underpins trillions of dollars of borrowings.