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December 21, 2018

For More Information, contact:
Mike Lewis (334) 353-2199
Steve Marshall
Joy Patterson (334) 242-7491
Page 1 of 2
Alabama Attorney General

Attorney General Steve Marshall Announces $68 Million Multistate Settlement
with UBS AG (“UBS”) for Artificially Manipulating Interest Rates
In Fourth Settlement of Its Kind, State AGs Hold UBS Accountable for
Manipulation of Benchmark Interest Rates
To Date, Investigation into USD-LIBOR-Setting Panel Banks Has Recovered $488 Million

(MONTGOMERY)–Attorney General Steve Marshall today announced a $68 million
multi-state settlement, with UBS for fraudulent conduct involving the manipulation of
LIBOR (the London Interbank Offered Rate). LIBOR is a benchmark interest rate that
affects financial instruments worth trillions of dollars and has a far-reaching impact on
global markets and consumers.
The Attorneys General of 39 states and the District of Columbia allege that UBS
misrepresented the integrity of the LIBOR benchmark by concealing, misrepresenting,
and failing to disclose that UBS at times made USD LIBOR submissions to avoid
negative publicity and protect the reputation of the bank, and that UBS made Yen
LIBOR submissions to benefit its derivative trading positions.
As a result of its fraudulent conduct, UBS made millions in unjust gains when
government entities and not-for-profit organizations entered into swaps and other
financial instruments with UBS without knowing that UBS and other banks on the USD-
LIBOR-setting panel were manipulating their LIBOR submissions.
Governmental and not-for-profit entities with LIBOR-linked swaps and other financial
instruments with UBS will be notified if they are eligible to receive a distribution from
the settlement fund.

501 Washington Avenue * Montgomery, AL 36104 * (334) 242-7300
www.ago.state.al.us Page 2 of 2

UBS is the fourth of several USD-LIBOR-setting panel banks under investigation by the
State Attorneys General to resolve the claims against it. With the UBS settlement, the
States have collected $488 million in payments from the four banks, almost all of which
will be distributed to state and local government entities and not-for-profits that have
been harmed by these banks’ wrongful conduct. Pursuant to the settlement agreement,
UBS will continue to cooperate with the States’ ongoing investigation; such cooperation
helps facilitate civil enforcement efforts, including the distribution of funds to victims of
the offense.
The working group includes the Attorneys General of Alabama, Alaska, Arizona,
Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida,
Georgia, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Massachusetts,
Minnesota, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico,
New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,
Rhode Island, South Carolina, Tennessee, Virginia, Washington, West Virginia, and