THE PUNISHMENT: Swiss bank UBS will pay $1.5 billion in a settlement with U.S., British and Swiss regulators for trying to rig a key interest rate. Two traders have also been charged with conspiracy, and the bank’s Japan unit will plead guilty to felony wire fraud in the U.S.
THE RATE: The rate in question, the London Interbank Offered Rate, or LIBOR, is used to price trillions of dollars in contracts worldwide, including mortgages and credit cards.
THE SCANDAL: Other big global banks are also being investigated for rigging the same market. Britain’s Barclays settled with regulators in June.