Swiss banking giant UBS could pay a fine of more than $1 billion to settle allegations that it manipulated Libor interest rates, the Financial Times reported on Thursday.
UBS was the first bank to reveal problems in the rate-setting process of the Libor, otherwise known as the London Interbank Offered Rate, which sets the rate at which banks lend money to each other and also affects a vast range of contracts around the world.
In June, British bank Barclays was fined $452 million by British and US regulators for attempted manipulation of interbank rates between 2005 and 2009.
The Libor system was found to be open to abuse, with some traders lying about the rates to boost positions or make their groups seem more secure.
Barclays is the only bank to have been fined so far, but it is understood that about 20 banks globally are being investigated for possible Libor manipulation.
State-rescued Royal Bank of Scotland has already said that it hopes to settle any claims after warning that it could face significant financial penalties.
RBS, which is 81-percent owned by the government after a huge bailout, has dismissed a number of employees for misconduct as a result of its own investigations.
Read more: UBS faces $1-billion fine for rate rigging: report - The Local
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