Company News: UBS, Southwest, General Motors

UBS must pay about $1.5 billion to U.S., U.K., and Swiss regulators for trying to rig global benchmark interest rates, including Libor, over a six-year period. UBS Securities Japan agreed to plead guilty to one count of wire fraud in relation to the manipulation—a rare criminal admission for a large bank. Two former UBS traders also face U.S. federal felony charges for their alleged roles in the rigging. Regulators said the bank’s traders made more than 2,000 requests to its own rate submitters, traders at other banks, and brokers to fudge submissions that help set the benchmark rates. The fines are equal to less than three weeks of UBS’s 2011 revenue.

Southwest Airlines, the discount carrier that advertises “Bags Fly Free,” is adding $100 million a year in new fees. The no-frills carrier resisted as competitors added charges; it had a liberal policy that let passengers receive full credit when changing or canceling tickets. Under the new rules, customers get only a partial refund if they miss their flight. Southwest is also raising prices for a third checked bag and for early-boarding slots. The new fees are part of the airline’s effort to increase revenue by $1.1 billion in 2013.