Wall Street Journal: UBS Negotiating $1 Billion Fine for Fixing Interest Rates.
Renegade financial giant UBS may need the $20 million Democratic and Working Families Governor Dannel P. Malloy handed over to the Swiss banking company in 2011 in a forgivable loan. The Wall Street Journal reports that UBS is nearing an agreement to pay a $1 billion fine for its nasty role in manipulating interest rates. The 2011 deal with Malloy allows the behemoth–with its startling history of breaking rules and standards–to keep the taxpayer money if it retains 2,000 of its 3,500 Connecticut employees in the state.
As services to the neediest are strained in Connecticut, taxpayers know that a big chunk of public resources has been given to a financial company that is accused of engaging in a manipulating “two benchmark rates [that] serve as the basis for interest rates on hundreds of trillions of loans, derivatives and other financial contracts worldwide.” Malloy’s alliance with UBS is part of his plan to “reinvent Connecticut.” For this, Malloy imposed the largest tax increase in the state’s history.
No word on whether Malloy, a former prosecutor, talked about UBS’s criminal acts when he lunched with the head of the company earlier this year in Switzerland.