Justice Department To UBS: On Second Thought, Go F*ck Yourselves

Just kidding about that non-prosecution agreement.
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A couple years back, UBS worked out a prettay, prettay, prettay sweet deal for itself re: Libor manipulation. Like many another bank, UBS’s employees had their way with London Interbank Offered Rate. Unlike many other bank, which faced stiff penalties for doing so, the Swiss struck an immunity deal with the EU wherein it paid a relatively small fine and then, in exchange for cooperating with authorities and “turning over information about other banks,” found itself in the clear. So that had to feel pretty good for the bank, except now, this is happening:

The US justice department is considering scrapping a 2012 agreement to not prosecute UBS for allegedly manipulating Libor in the latest sign that US authorities are ratcheting up pressure on global banks. UBS had agreed in 2012 to a non-prosecution agreement (NPA) to resolve allegations it rigged the benchmark rate, saving it from a guilty plea if the Swiss bank avoided other alleged wrongdoing for two years. The deal was recently extended for an additional year to the end of 2015. But now that settlement is under threat as part of the wide-ranging probe of potential manipulation of foreign exchange markets, which the DoJ is hoping to resolve with UBS and four other banks as soon as next week. The threat of scrapping the 2012 NPA for the Libor settlement is particularly sensitive for UBS because the Swiss bank was the first financial institution to alert US authorities about the potential manipulation of forex markets.

DoJ ratchets up pressure on UBS over Libor scandal [FT]

Earlier: UBS Just Worked Out A Prettay, Prettay, Prettay Sweet Deal For Itself Re: Libor Immunity

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