CHARLESTON. W.Va. (AP) - The West Virginia University Foundation and a hospital will receive more than $600,000 as part of a multistate settlement involving an investigation into the role of Swiss bank UBS in manipulating an interest rate used to price everything from credit cards to mortgages.
The WVU Foundation, which solicits and administers private support on behalf of the university, will receive more than $430,000, and WVU Medicine Camden Clark Memorial Hospital in Parkersburg will receive more than $177,000, West Virginia Attorney General Patrick Morrisey said in a news release.
It was among several bank settlements of charges related to the manipulation of the London Interbank Offered Rate, better known as Libor. UBS has paid hundreds of millions of dollars in fines and penalties to U.S. and European authorities for its manipulation of Libor.
The UBS investigation involved a $68 million settlement with attorneys general from 40 states. The states previously reached Libor-related settlements with Barclays, Deutsche Bank and Citigroup.
Libor is set every day and is a widely quoted interest rate used to price a myriad of financial instruments. The interest rates on credit cards typical use Libor as a benchmark.
The statement said the WVU Foundation and Camden Clark were eligible since both had Libor-linked swaps and other financial instruments with UBS.
“Honesty is paramount when investing,” Morrisey said. “Fraud and manipulation of rates and markets cannot be tolerated by any bank or institution.”
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