UBS AG is under investigation by U.S. and Japanese regulators and prosecutors for allegedly trying to manipulate the London Interbank Offered Rate, or Libor.  The SEC, the CFTC, and the Justice Department each issued the Swiss bank a subpoena, while Japan's Financial Supervisory Agency is conducting a similar inquiry.

    Libor, a key benchmark used to set interest rates around the world, is a measure of how much banks charge each other for loans, and is hugely important as a barometer of market interest rates and the health of the financial system.  It is used as a reference for setting adjustable rate mortgages and other loans.  Fluctuations in Libor affect the payments made by millions of homeowners and other borrowers.

A UBS spokesperson said the bank had nothing to add beyond a one-paragraph disclosure in the annual report, which was published on Tuesday - "UBS is conducting an internal review and is cooperating with the investigations."   UBS, however, suggested that other institutions or suspects may be involved, but did not name them.   [NYT Dealbook, 3/15]