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UBS to pay $545 million over forex scandal

Zurich-based UBS has agreed to pay $545 million to U.S. authorities in order to settle an investigation into alleged manipulation of currency rates.

UBS to pay $545 million over forex scandal

The settlement will allow UBS to close this chapter and move ahead after facing a series of trading scandals. The fine was lower than expected and this contributed to a more than three percent rise in UBS shares to their highest level in six and a half years.

The Justice Department said the resolutions for other banks in connection with exchange rate manipulation would be announced by Attorney General Loretta Lynch at a press conference in Washington on Wednesday at 10 a.m. EDT (1400 GMT).

The payment which the Swiss bank has agreed to pay is part of what is expected to be a combined multi billion-dollar settlement by five of the world's biggest banks with U.S. and British authorities related to the manipulation of the $5 trillion-a-day forex market.

Zurich-based UBS today said the U.S. Federal Reserve had fined it $342 million for its role in the forex scandal. UBS escaped the charge because it was the first bank to report the misconduct to the U.S. Department of Justice (DOJ). Four other banks, JP Morgan (JPM.N), Citigroup (C.N), Barclays (BARC.L) and Royal Bank of Scotland (RBS.L) are expected to plead guilty to criminal charges later on Wednesday in relation to the forex investigation.

UBS also managed to escape any fine from the DOJ on the forex issues. The DOJ would also not prosecute the bank over investigations into its precious metals business.

The UBS, however, pleaded guilty to one count of wire fraud and pay a $203 million fine for its role in rigging interest rate benchmark Libor after its involvement in the forex debacle breached an earlier DOJ agreement.