By causing UBS and other financial institutions to spread false and misleading information about LIBOR, these alleged conspirators—and others at UBS—manipulated the benchmark interest rate upon which many consumer financial products—including credit cards, student loans, and mortgages—are frequently based. They defrauded the company's counterparties of millions of dollars. And they did so primarily to reap increased profits, and secure bigger bonuses, for themselves.

UBS [JURIST news archive] has been involved in many legal disputes in recent years. In September the US Internal Revenue Service (IRS) [official website] awarded $104 million [JURIST report] to a former UBS banker for his role in uncovering that UBS helped American clients shelter assets from US tax liability. In July 2011 the Federal Supreme Court of Switzerland [official website, in German] ruled [JURIST report] that the Swiss government was correct in ordering UBS to disclose information to the US on more than 250 of the bank's clients. In July 2010 a Swiss court announced [JURIST report] that an agreement [text, PDF] with the US, allowing UBS to disclose account information of clients suspected by the US government of tax evasion, is binding.