Libor, schmibor.
UBS could end up paying a whopping $8 billion in fines to settle a probe into rigged currency markets — that’s more than five times what it paid to settle charges it manipulated interest rates, according to a research report.
The Swiss bank had reportedly been cooperating with regulators in the US and UK in hopes of getting a lenient fine.
UBS self-reported its manipulation of WM/Reuters exchange rates, hoping that a confession of its wrongdoing would absolve it from punishment.
The bank paid about $1.5 billion in fines for rigging Libor, the interest rate used by banks on trillions of dollars of loans made to other banks.
The report, issued by Autonomous Research, says that all Wall Street banks could face a total of $35 billion in fines for currency manipulation.
Deutsche Bank and Citigroup could also face more than $4 billion in fines, the report said.
Fines for banks have been hiked during the past year as regulators and prosecutors have taken a tougher stance.
JPMorgan Chase paid more than $13 billion to settle charges that it overstated the creditworthiness of securities that contributed to the housing crisis. The bank didn’t admit or deny any wrongdoing.
Credit Suisse paid $2.6 billion and admitted that it was guilty in helping US tax cheats for years.
BNP Paribas is also facing $10 billion in fines or more, plus criminal charges, firings, and potentially losing its ability to clear in US dollars, according to people familiar with the investigation.
Spokespeople for UBS, Deutsche Bank and Citigroup declined to comment.