The Swiss bank UBS has agreed to pay around $1.5 billion to settle charges that a group of traders at its Japanese unit rigged Libor interest rates. The money will be paid to US, UK and Swiss regulators who are investigating a number of banks for rigging Libor, which tracks the average rate at which the major international banks based in London lend money to each other.

UBS is the second major bank to be fined over Libor after Barclays was ordered to pay $450m to UK and US authorities in the summer. The bank also admitted to manipulating Euribor and Tibor - the equivalent interest rates set by lenders in the Eurozone and in Tokyo.

The fine is the latest blow for UBS, following the conviction of rogue trader Kweku Adoboli earlier this year for losing £1.4bn for the bank, and a £500m settlement with US authorities for helping US citizens evade taxes.

The stiff penalty would, however, have only a limited financial impact on UBS. It earned $4.59 billion in net profit last year and the bank has spent much of this year and last bolstering its capital.

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Written and presented by Ann Salter