UBS Stock Declines as Justice Department Prepares to Revoke Libor Settlement

NEW YORK (TheStreet) -- UBS Group (UBS) shares are down 0.64% to $21.08 in early market trading on Wednesday following reports that the U.S. government is preparing to cancel its agreement not to prosecute the Swiss investment management firm for misconduct related to the recent Libor rigging scandal, according to Bloomberg.

The company signed a non-prosecution agreement with the U.S. in December 2012 as a resolution to the charges brought against five large banks alleging that they manipulated the London interbank offered rate, or Libor, which underpins about $350 trillion in derivatives.  

However, in March a senior U.S. Justice Department official said that the agency would look into revoking such agreements if the banks in question continued to act unscrupulously. While UBS is expected to be shielded from antitrust charges related to Libor, it could still be brought up on fraud charges related to the case, according to Bloomberg sources.

Reports have not surfaced on what specifically UBS has done to draw more regulatory attention and neither the Department of Justice or the company have commented.

UBS Chart UBS data by YCharts

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