UBS has been fined $1.5B after regulators uncovered more than 2,000 instances of 45 different traders and executives manipulating global interest rates. Their own words ("JUST BE CAREFUL DUDE") speak to their guilt. Two former employees were charged with crimes.
Read more outrageous quotes at BBC and WSJ
Here's an excerpt from the BBC article:
Brokers would also "spoof" the market on behalf of UBS - creating a false illusion that there was more demand on one side of the market than really existed, by advertising bogus requests, in order to influence the interest rates offered by the banks.
For example, in a telephone call a broker told a UBS trader that he had been:
offering... some cheap [three-month Libor] all morning and I shouted them down at [unnamed rival bank] as well... we were offering them at 50 mate... that wasn't even true
UBS paid off brokers to the tune of £15,000 every three months over one 18-month period.
One was of achieving this was via "wash trades" - buying and selling from the trader simultaneously, so the trades cancel each other out, but the difference in price generates a profit for the broker.