Switzerland based bank, UBS will pay fine totaling £940 million or about US$1.53 billion in order to settle claims relating to Libor manipulations.

H regulators have said that the bank was involved in extensive and widespread attempts to manipulate Libor, the benchmark interest rates for five years. It is the latest development in the long standing rigging scandal that has tainted several global banks and exposes corrupt payments made by financial institutions.

The Financial Services Authority has imposed £160 million on the bank, which is the largest ever imposed by the City regulator and is more than £59.5 million fine that was imposed on Barclays in June for trying to manipulate Libor and Euribor rates.

The FSA said that about 2,000 requests for inappropriate submissions for interest rates were recorded and 45 individuals were involved in the transactions. It is alleged that traders, managers and senior managers were involved and were aware of the malpractices. The FSA said that everyone of the submissions were potentially suspicious.

Tracey McDermott, the FSA director of enforcement and financial crime, said, "The findings we have set out in our notice today do not make for pretty reading. The integrity of benchmarks such as Libor and Euribor are of fundamental importance to both UK and international financial markets. UBS traders and managers ignored this."