The international probe into LIBOR manipulation rages on.LIBOR is a key benchmark rate used all over the world to set borrowing rates.
According to the Wall Street Journal’s Jean Eaglesham and Joe Palazzolo, some ex-UBS traders may get leniency if they dish on their LIBOR-manipulating ex-coworkers.
U.S. prosecutors have agreed to shield several former UBS AG employees from criminal charges in return for their cooperation with the escalating investigation of suspected interest-rate manipulation, according to a person close to the probe.
The leniency deal was offered to former traders and other employees who had relatively junior-level jobs at the Swiss bank, the person said.
The deals don’t necessarily mean that any settlement by UBS or arrests of traders implicated in the scandal are imminent. But the moves by prosecutors show how regulators are revving up their world-wide scrutiny of interest-rate manipulation.
“I think that if interest-rate traders had acted with criminal intent, they would have hardly recorded it in emails. Traders are accused of many things, but they aren’t that short-sighted,” said former UBS Oswald Gruebel to Reuters last month.
Read more at WSJ.com.