UBS Group AG agreed to pay $68 million for manipulating the Libor benchmark interest rate, New York state Attorney General Barbara Underwood said Dec. 21.

The payment is part of a 40-state settlement. With the UBS deal, state attorneys general have resolved London Interbank Offered Rate investigations with four banks, for a total of $488 million, Underwood said in a statement.

The attorneys general claimed UBS failed to disclose that some of its U.S.-dollar Libor submissions were made for the purpose of avoiding negative publicity and to protect the reputation of the bank, according to the statement. Underwood said UBS also made Yen Libor submissions to benefit its derivative trading positions.

The result of the Libor fraud was millions of dollars in improper profits, at the expense of government entities and not-for-profit groups, Underwood said. Those groups lost money when they made swaps and other financial transactions based on Libor-based rates that were manipulated by UBS and other banks.

“We are pleased to have resolved this legacy matter related to events that are almost a decade old,” the bank said in an emailed statement. “It was achieved with the best interests of our shareholders in mind.“

Libor is a global interest-rate benchmark that affects trillions of dollars in financial transactions.

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