'Customers could take action against Libor banks'

Swiss banking giant UBS has agreed to pay $1.5bn (£940m) to US, UK and Swiss regulators for attempting to manipulate the Libor inter-bank lending rate.

It becomes the second major bank to be fined over Libor after Barclays was ordered to pay $450m to UK and US authorities in the summer.

Besides UBS and Barclays, about a dozen other major banks are involved in setting Libor rates each day across a range of currencies, and most of them are understood to be still under investigation.

Philip Augar, former group managing director at Schroders told BBC News that apart from significant fines, customers could take action against their banks if they have been disadvantaged by the Libor rigging.