Reuters said a UBS spokesperson told it that the Swiss bank was in talks with US and UK authorities about the inter-bank interest rate investigations and had been fully co-operating, but gave no more details.

The Commodity Futures Trading Commission, the US Justice Department and UK’s Financial Services Authority declined to comment to the NYT, it said. 

"UBS has been cooperating fully with the regulatory and enforcement authorities in connection with Libor investigations.  As we are in the midst of discussions with those authorities, we cannot comment further," the bank told this publication in an emailed statement today.

The LIBOR-rigging affair, which rocked the reputation of London’s financial markets, led to the fine by the US and UK in June of Barclays to the tune of more than $450 million. High-profile chief executive Robert Diamond, among other senior figures, resigned.

If UBS does reach a settlement involving a large payment, it will be an embarrassment for a bank that only recently saw the completion of a court case in which a rogue trader was jailed for unauthorised trading at the investment banking arm, causing the Zurich-listed bank $2.3 billion of losses.