UBS is in global talks to reach a settlement of more than $450 million over the alleged manipulation of Libor, putting the Swiss bank on track for a record fine in the wide-reaching rate-rigging scandal.

Switzerland’s largest bank by assets has started settlement talks in the past 10 days and is hoping to come to an agreement with authorities in its home country, Britain and the US before the end of the year, said two people familiar with those discussions.

They said the proposed fine would be higher than $450 million, which is what Barclays paid in the summer in the first settlement of a global bank over Libor.

Over the last three quarters, UBS has added SFr565 million to its provisions for dealing with litigation and regulatory matters. – (Copyright The Financial Times Limited 2012)