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Pressure has been mounting on American and British regulators after documents revealed that they had been informed about potential manipulation of rates as far back as 2007.
He recorded around $260 million in profits during his time at the bank, though the UBS officials could not say how much of that could be linked to manipulation of rates.
The $1.5 billion levied against UBS is the largest penalty so far in the five-year investigation into the manipulation of rates, and was a new blow for the bank.
Mr Gensler compared the manipulation of rates to an estate agent trying to sell you a house.
Reports seen by the BBC suggest banks knew of unusual currency trading four years before regulators began investigating possible manipulation of rates.
The deregulation of the electricity industry allowed for large-scale manipulation of rates for profit-making.
Similar(52)
Last month, Barclays announced a $450 million settlement with American and British authorities over the manipulation of benchmark rates, including the London interbank offered rate, or Libor.
The inquiry may lead to greater regulatory oversight of the rate, while lawmakers are considering new laws that would make the manipulation of benchmark rates a criminal offense.
A few years ago, in the midst of the easing, I spoke with James Grant, the publisher of the highly respected Grant's Interest Rate Observer and a longtime Fed watcher, about the dangers of the Fed's manipulation of interest rates.
PPP acknowledges that currency exchange rates sometimes do not reflect the true value of wealth generation due to trade imbalances and/or active manipulation of exchange rates.
U.S. Is Building Criminal Cases in Rate-Fixing | As regulators ramp up their global investigation into the manipulation of interest rates, the Justice Department has identified potential criminal wrongdoing by big banks and individuals at the center of the scandal.
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