UBS could pay £280m fine for Libor fixing

UBS could pay $450m (£280m) to regulators following allegations that its employees submitting false figures to the organisation that compiles the Libor rate, according to a report in the New York Times.

This summer Barclays paid a similar fine after admitting that it manipulated the benchmark interest rate, resulting in the resignation of its chief executive Bob Diamond.

Libor, which is set by the British Bankers Association and Thomson Reuters, underpins enormous numbers of global transactions including some mortgages and credit cards.

Other banks, including RBS and Deutsche Bank, have already set aside funds for Libor-related fines.