UBS will pay $545 million to U.S. authorities to end an investigation into alleged manipulation of currency rates, a settlement that will help the Swiss bank to move on after a series of trading scandals.
The amount was lower than expected and this contributed to a more than three percent rise in UBS shares to their highest level in six and a half years.
The Justice Department said Attorney General Loretta Lynch would announce resolutions for other banks in connection with exchange rate manipulation at a press conference in Washington on Wednesday at 10 a.m. EDT (1400 GMT).
UBS's payment is part of what is expected to be a combined multi billion-dollar settlement by five of the world's biggest banks with U.S. and British authorities over alleged manipulation of the $5 trillion-a-day forex market.
Zurich-based UBS said on Wednesday the U.S. Federal Reserve had fined it $342 million for its role in the forex scandal. UBS has not been charged because it was the first bank to report the misconduct to the U.S. Department of Justice (DOJ).
Four other banks, JP Morgan, Citigroup, Barclays and Royal Bank of Scotland are expected to plead guilty to criminal charges later on Wednesday in relation to the forex investigation.
UBS also escaped any fine from the DOJ on the forex issues and said the DOJ would not prosecute it over investigations into its precious metals business.
Instead, the Swiss bank will have to plead guilty to one count of wire fraud and pay a $203 million fine for its role in rigging interest rate benchmark Libor after its involvement in the forex debacle breached an earlier DOJ agreement.
The bank is now under a three year "probation" period with the DOJ. It had already paid out $1.5 billion for its role in the Libor scandal.
"It couldn't have been better," Andreas Brun, an analyst with Zuercher Kantonalbank, said. "Most of it was already priced in but something around $1 billion was expected, including the Libor fee."