Friday, December 14, 2012

UBS Bankers Face Criminal Charges Over LIBOR

surprise By Trippography on Flickr

UBS Is Nearing A Deal With Authorities Over LIBOR, And Wall Street Hasn't Seen Anything Like It In Over A Decade
Linette Lopez | Dec. 14, 2012, 8:31 AM | 1,494 | 3

The most salient criticism for the way maleficence at banks is handled — from the financial crisis to money laundering at HSBC — it's that bank's never face criminal charges.

The New York Times reports that this may change as early as next Monday.

Sources close to the matter say that UBS is nearing a deal with authorities, and that it may include criminal charges as well as about $1 billion in fines.

From the NYT:

UBS is in final negotiations with American, British and Swiss authorities to settle accusations that its employees reported false rates, a deal in which the bank’s Japanese unit is expected to plead guilty to a criminal charge, according to people briefed on the matter who spoke of private discussions on the condition of anonymity. Along with the rare admission of criminal wrongdoing at the subsidiary, UBS could face about $1 billion in fines and regulatory sanctions, the people said.

Banks haven't admitted to criminal wrong-doing in over a decade — not even HSBC when it was ordered to pay its $1.9 billion money-laundering fine.

Individual bankers/traders have been charged, and in UBS's case three bankers have been arrested. The most prominent of those three is Thomas Hayes, a 33 year old interest rate trader who worked in UBS's Tokyo office.

According to the NYT, aside from the blow to the bank's reputation, a guilty plea could mean limitations on the business UBS's Japanese unit is able to do. Plus, it could be subject to independent monitoring.

And who wants that?


  1. I don't understand how any of these fines can be counted as "wins".

    $1.9B fine to HSBC for rigging/laundering how much money?

    I bet even after the fine, they still made a profit.
    Just another day at work.

  2. Just the cost of doing business. This is a joke. Ooooo scaaarrryyy, independent monitoring. I'm sure the cabal is shaking now. When will we see some real action? These monsters need to be stopped. NOW!

  3. I'd like to know where all this fine money goes and what it is used for. To compensate anyone for the losses taken as a result of the fraud?

    And how is it that organizations that have perpetrated this level of fraud and deceit affecting hundreds of thousands of people over years and years are even allowed to exist any longer? Is it not clear that they are corrupt institutions capable of anything they think they can get away with? How can they be trusted in anything they do?

  4. Can anyone tell me who / where does all this fine money go to? It certainly doesnt end up in the pockets of the people who have suffered due to the rigging of interest rates. I suspect it finds its way back to the cabal of people who have perpetrated this fraud in the first place!

  5. While I completely understand where Anon 9:24 is coming from, I have noticed that the fines keep growing. Further, any arrests can result in more fines and arrests. It's likely many will talk. Right now is the time for finding peace within. In doing so we're greatly aiding in the change we desire. Now is the time to be as you envision yourself being when all is said and done. In everything lead with love. There's no time like the present. By the way, bravo to Anonymous!

  6. my question is where do these fines go? People in the company need to be put in jail period fine means nothing to a these thieves.

  7. Anon 11:43;

    There is a time for love and forgiveness and this isn't it.

    This is akin to a sovereign citizen knowingly racking up credit card fraud to large sums, then when caught, trying to settle for 1/1000% of what they defrauded and walk away clean.
    Would this be allowed to happen? No, the citizen would have the book thrown at him, fined for every cent they defrauded and then some more.
    Then thrown in prison for X amount of months.

    This clearly shows there are still two sets of rules...
    One for them, and for us citizens.

    This will not change with love and forgiveness.

  8. The only way I will be "okay" with these fines, is if they are 10x more then they are right now, encompass all of these scumbags including their ill gotten bonuses, and if it goes directly to the people affected in the form of a check.

    If they can do SSI relatively easily, then they should be able to put this system into effect.

    Apply directly to the area affected. Lawyers should get no more then 10% of any of these funds.

  9. Fines my hiney...they probably never really pay and it never goes to the people it hurt. Even if they do pay it will most likely go right back in the criminal circle of banks and government. How many people are getting their homes back due to their criminal rigging and fraud....?


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