Start-Ups Take on Special Tasks for Small Business

Peter DaSilva for The New York Times

Leah Busque, right, founder of TaskRabbit, with Lauren Sherman, a marketing manager, in San Francisco.

Small-business owners are like Swiss Army knives: expected to handle dozens of specialized tasks without falling apart. But even the sharpest entrepreneurs have it tough this time of year — inevitably, some will outsource part of their workload to other enterprising people.

This season, dozens of start-ups are competing to take on your holiday headaches. Here are four time-gobbling situations and the young companies vying to eliminate them:

CHALLENGE Your to-do list is crammed with tiny tasks. How can you delegate them cheaply?

ONE SOLUTION For $5 you could drink a large latte and work through the night. Or you could hire a minion at Fiverr, which bills itself as “the world’s largest marketplace for small services.” Starting at $5 apiece, tasks include designing business cards and letterheads, sending out handwritten cards, editing newsletters, making short commercial videos and throwing darts at a picture of your rival.

“Pretty much anything you imagine can be found on Fiverr,” said the company’s chief executive, Micha Kaufman, who set out in 2010 with Shai Wininger to build what Mr. Kaufman calls “an eBay for services.”

“It’s giving people the tools to do business with the entire world,” he added.

Fiverr, with headquarters in Tel Aviv and offices in New York and Amsterdam, has more than a million active buyers and sellers across 200 countries, Mr. Kaufman said. He would not disclose revenue or the number of sales his site has brokered so far. Fiverr has raised $20 million in financing and has 60 full-time staff members. The company collects a 20 percent commission on each sale.

THE COMPETITION Fiverr’s success has inspired an army of imitators, including Gig Me 5, Gigbucks, TenBux and Zeerk. Building and selling Fiverr copycat sites has also become a cottage industry for online software developers. Asked whether he took this as a compliment, Mr. Kaufman replied dryly, “One of my friends said, ‘It may be flattering, but it’s a very annoying way to flatter you.’ ”

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CHALLENGE You want to delegate complex, highly specialized tasks, but it’s hard to find people whose expertise matches your needs.

ONE SOLUTION SkillPages connects skilled workers with those who want to hire them. The site showcases an array of specialists — beekeepers, tree surgeons, witches, clog dancers — along with professionals with more conventional business skills, like payroll administrators, social media marketers and typists.

Iain Mac Donald decided to start SkillPages after seeking a tree cutter online to do work in his yard. “This guy arrives with a huge truck, and he could have taken down a forest,” Mr. Mac Donald said. “He was going to charge me $3,000. It just wasn’t right.”

Mr. Mac Donald figured there had to be a way to help make better matches. To that end, SkillPages identifies specialists whom users’ families and friends may already know through social networks like Facebook, LinkedIn and Twitter. Users can also view work samples online and contact members directly.

Based in Ireland, SkillPages went live in 2011 and opened an office in Palo Alto, Calif., this year. The company’s 35 employees handle traffic from more than nine million users worldwide, 1.5 million of them in North America. The company has received $18.5 million in financing, said Mr. Mac Donald, the chief executive, declining to disclose sales figures.

SkillPages’ basic services are free. To make money, it sells advertising space and offers premium memberships with stand-alone Web sites for those offering services. Next year, Mr. Mac Donald plans to offer a paid matchmaking service for talent-seeking companies. He is also building a “targeted offers” program that will let niche vendors present deals on products and services to members with relevant expertise. The vendors will pay SkillPages a bounty for each sale.

THE COMPETITION Guru, oDesk and Elance also focus on skilled work. LinkedIn added a “skills” component to its profiles last year.

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CHALLENGE You are overwhelmed by errands and other location-specific jobs that cannot be farmed out to the other side of the planet. You need an affordable gofer: competent, trustworthy, local.

ONE SOLUTION TaskRabbit is an on-demand service for handling quick jobs: assembling Ikea furniture, packing boxes, wrapping gifts, mailing invitations or even carrying awkward objects like Christmas trees. The company sends requests to a network of “rabbits” — errand-runners screened through video interviews and background checks — who bid for the work. Last month, 80 were hired to wait on Black Friday lines.

Leah Busque got the idea for TaskRabbit one night in 2008, when she was going out to dinner and realized she had no food in the house for Kobe, her yellow Labrador. Envisioning an online service for dispatching errand-runners, she quit her job as an I.B.M. software engineer to build it. A year later, she won a slot in Facebook’s now defunct incubator program and later moved her company, then called RunMyErrand, to San Francisco from Boston.

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Europe Proposes New Tobacco Rules

BRUSSELS — Health warnings should cover 75 percent of cigarette packs but governments should also have leeway to require plain packaging, the European Commission said Wednesday.

Yves Logghe/Associated Press

European Commissioner for Health and Consumer Policy Tonio Borg held up a mock package of cigarettes during a news conference on proposals to revise the Tobacco Products Directive, at the European Commission headquarters in Brussels on Wednesday.

The commission’s proposal would also ban cigarettes containing large quantities of flavorings including menthol and vanilla, restrict the sale of slimmer cigarettes and maintain a ban in most of the European Union on a form of chewing tobacco called snus.

The proposals still are less strict than in Australia, where a prohibition on logos and colorful designs went into effect this month. But the proposed ban on slim and super-slim cigarettes that are marketed to young women “is a positive development and a world first,” said the Smoke Free Partnership, a European organization that promotes tobacco control and research.

Tonio Borg, the E.,U. commissioner for health and consumer policy, said the overall goal of the so-called Tobacco Products Directive was to make smoking less attractive and to discourage young people from tobacco consumption.

“Consumers must not be cheated,” Mr. Borg said. “Tobacco products should look and taste like tobacco products, and this proposal ensures that attractive packaging and flavorings are not used as a marketing strategy.”

But Unitab, a European association of tobacco growers, said regulators had declared “total war” on their industry. The increased restrictions on branding would make price the deciding factor in tobacco sales; that in turn would favor suppliers from countries with lower production costs and put thousands of jobs in Europe at risk, the association said.

Written health warnings already must cover about 40 percent of a cigarette pack in the Union, although some countries also use pictorial warnings. In the future, Mr. Borg would like pictorial warnings to be mandatory, and for the warnings to cover three-quarters of the front and back of each pack of cigarettes, and half of each side.

E.U. officials conceded that the entire top and bottom sides of cigarette packs sold in Europe still could be used for branding under Mr. Borg’s proposals. Member states could opt to require plain packaging, however.

The directive also would require that smokeless electronic cigarettes providing more than a certain amount of nicotine should be available only in outlets like pharmacies. National or Europe-wide “test panels” would determine what quantities of flavoring like menthol should be banned, they said.

Much of the interest in the legislation in recent months had focused on apparent attempts to influence its wording.

Mr. Borg’s predecessor, John Dalli, resigned in October after the commission concluded that he had probably known about an attempt by a lobbyist to solicit a multimillion-dollar payoff in exchange for easing the ban on snus. The product can be sold only in Sweden, where some people consider it a safer alternative to smoking.

Mr. Dalli denied the allegations and said he was forced to resign under pressure from José Manuel Barroso, the president of the commission. Mr. Dalli also said his ouster had jeopardized chances for the revised directive to be passed before the current term of the European Parliament, which must approve the legislation, expires in 2014.

Mr. Borg suggested Wednesday that the law still could be adopted before the Parliament’s term expires, and go into force in 2015 or 2016.

But the Smoke Free Partnership warned that lobbying still could water down the proposals on labeling and packaging, as well as the ban on flavors and slim cigarettes. Governments and members of the European Parliament “are likely to face attempts by the tobacco industry to further block, weaken and delay this important legislation,” said Florence Berteletti Kemp, the director of the partnership.

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Europe Proposes New Tobacco Rules

BRUSSELS — Health warnings should cover 75 percent of cigarette packs but governments should also have leeway to require plain packaging, the European Commission said Wednesday.

Yves Logghe/Associated Press

European Commissioner for Health and Consumer Policy Tonio Borg held up a mock package of cigarettes during a news conference on proposals to revise the Tobacco Products Directive, at the European Commission headquarters in Brussels on Wednesday.

The commission’s proposal would also ban cigarettes containing large quantities of flavorings including menthol and vanilla, restrict the sale of slimmer cigarettes and maintain a ban in most of the European Union on a form of chewing tobacco called snus.

The proposals still are less strict than in Australia, where a prohibition on logos and colorful designs went into effect this month. But the proposed ban on slim and super-slim cigarettes that are marketed to young women “is a positive development and a world first,” said the Smoke Free Partnership, a European organization that promotes tobacco control and research.

Tonio Borg, the E.,U. commissioner for health and consumer policy, said the overall goal of the so-called Tobacco Products Directive was to make smoking less attractive and to discourage young people from tobacco consumption.

“Consumers must not be cheated,” Mr. Borg said. “Tobacco products should look and taste like tobacco products, and this proposal ensures that attractive packaging and flavorings are not used as a marketing strategy.”

But Unitab, a European association of tobacco growers, said regulators had declared “total war” on their industry. The increased restrictions on branding would make price the deciding factor in tobacco sales; that in turn would favor suppliers from countries with lower production costs and put thousands of jobs in Europe at risk, the association said.

Written health warnings already must cover about 40 percent of a cigarette pack in the Union, although some countries also use pictorial warnings. In the future, Mr. Borg would like pictorial warnings to be mandatory, and for the warnings to cover three-quarters of the front and back of each pack of cigarettes, and half of each side.

E.U. officials conceded that the entire top and bottom sides of cigarette packs sold in Europe still could be used for branding under Mr. Borg’s proposals. Member states could opt to require plain packaging, however.

The directive also would require that smokeless electronic cigarettes providing more than a certain amount of nicotine should be available only in outlets like pharmacies. National or Europe-wide “test panels” would determine what quantities of flavoring like menthol should be banned, they said.

Much of the interest in the legislation in recent months had focused on apparent attempts to influence its wording.

Mr. Borg’s predecessor, John Dalli, resigned in October after the commission concluded that he had probably known about an attempt by a lobbyist to solicit a multimillion-dollar payoff in exchange for easing the ban on snus. The product can be sold only in Sweden, where some people consider it a safer alternative to smoking.

Mr. Dalli denied the allegations and said he was forced to resign under pressure from José Manuel Barroso, the president of the commission. Mr. Dalli also said his ouster had jeopardized chances for the revised directive to be passed before the current term of the European Parliament, which must approve the legislation, expires in 2014.

Mr. Borg suggested Wednesday that the law still could be adopted before the Parliament’s term expires, and go into force in 2015 or 2016.

But the Smoke Free Partnership warned that lobbying still could water down the proposals on labeling and packaging, as well as the ban on flavors and slim cigarettes. Governments and members of the European Parliament “are likely to face attempts by the tobacco industry to further block, weaken and delay this important legislation,” said Florence Berteletti Kemp, the director of the partnership.

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Challenging France to Do Business Differently

Pool photo by Bertrand Langlois

President François Hollande must find a way to make palatable a shift in French labor practices.

PARIS — Louis Gallois, one of France’s most influential industrialists, knew he was about to make waves for the country’s Socialist president.

It was late October, and President François Hollande, faced with an alarming deterioration in the economy, had turned to Mr. Gallois for advice on how to put corporate France on a more competitive footing with the rest of Europe.

Mr. Gallois didn’t sugar-coat the message. His report called for a “competitiveness shock” that would require politicians to curb the “cult of regulation” he said was choking business in France.

The report said that unless France relaxed its notoriously rigid labor market, the country would continue on an industrial decline that had destroyed more than 750,000 jobs in a decade and helped shrink France’s share of exports to the European Union to 9.3 percent, from 12.7 percent, during that period. The report also called for cuts to a broad range of business taxes used to pay for big government and France’s expensive social safety net.

But some wonder whether those measures, even if they can be adopted, would suffice. For them, there is a larger question: Can France be fixed?

While the European crisis has made the French acutely aware of the need to modernize the economy, the country may be running short on time. And there are mixed signals on whether the Hollande government is willing to heed the advice.

As details of the report leaked, the French news media went into a frenzy over whether their country — so resistant to change that the government still controls the price of a baguette of bread — was prepared for such upheaval.

Mr. Hollande quickly provided an answer: a competitiveness “pact” between business and government would better suit French society.

As Mr. Hollande’s finance minister, Pierre Moscovici, hastened to explain, “A shock causes trauma, whereas a pact reassures.”

But many observers say reassurance may no longer be an option.

Even the Germans are alarmed: Behind closed doors, Chancellor Angela Merkel and officials in her entourage are said to be worried that a failure by Mr. Hollande to improve competitiveness could ricochet back to the weakening German economy, further stalling what had long been twin engines of growth for Europe.

“The concern is not just that France could be the next candidate affected by turbulence” from the euro crisis, said Lars P. Feld, an economics professor at the University of Freiburg and an adviser to the German government. “The fear is that it doesn’t manage to cope with the loss of competitiveness and therefore produces little growth or perhaps even stagnation for the next few years,” Mr. Feld said. “And that after that, it could become the new sick man of Europe.”

France still has much working in its favor. Second only to Germany as Europe’s biggest economy, and the fifth-largest in the world, France is a wealthy country with a high savings rate, large foreign direct investment and world-class research and development capabilities.

And the interest rate on French 10-year bonds is only about 2 percent. That is much closer to Germany’s rate than to those of the euro zone’s staggering giants, Italy and Spain, which are above 4 percent and 5 percent respectively, as they struggle to clean up their economies.

Yet, last week the French central bank warned that growth would shrink 0.1 percent in the last three months of 2012, after stagnating for most of the year. Last month Moody’s Investors Service followed Standard & Poor’s in stripping France of its triple-A credit rating, saying the government was failing to ignite competitiveness fast enough.

Meanwhile, an ambitious effort Mr. Hollande began shortly after his election in May to cut the deficit to 3 percent next year from 4.5 percent through tax increases and spending cuts may dampen growth further and ratchet up unemployment, which recently neared 11 percent, twice the rate in Germany.

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For Modernizing Thais, Monastic Life Loses Allure

Young monks rehearsed an evening candlelight ceremony at the Chedi Luang temple in Chiang Mai, Thailand. The country’s Buddhist temples are as much a part of the landscape as rice paddies and palm trees. But many temples in rural Thailand have fallen quiet.

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Oracle’s Profit Climbs 18%

SAN FRANCISCO (AP) — Oracle, the business software maker, said Tuesday that its profit rose 18 percent in its most recent quarter because companies spent more on software and other technology as the year was winding down.

The results were an improvement from Oracle’s previous quarter, when its revenue fell slightly from a year earlier.

The latest quarter spanned September through November. That makes Oracle the first technology bellwether to provide insight into corporate spending since the Nov. 6 re-election of President Obama and negotiations to avoid a fiscal crisis began to heat up in Washington.

Oracle said it earned $2.6 billion, or 53 cents a share, in its fiscal second quarter. That compares with net income of $2.2 billion, or 43 cents a share, a year earlier.

If not for charges for past acquisitions and certain other costs, Oracle said it would have earned 64 cents a share. On that basis, Oracle topped the average earnings estimate of 61 cents a share among analysts surveyed by FactSet.

Revenue increased 3 percent from last year to $9.1 billion, about $900 million more than analysts had projected.

In a particularly heartening sign, Oracle said sales of new software licenses and subscriptions to its online services climbed 17 percent from last year to outstrip the most optimistic predictions issued by management three months ago.

The flow of new licenses and subscriptions, which represent about a quarter of Oracle’s revenue, is closely tracked by investors because they lead to more revenue in the future from upgrades.

In the current quarter, which ends in February, Oracle expects software licenses and subscriptions to increase in the range of 3 percent to 13 percent from the previous year. The company, based in Redwood Shores, Calif., predicted its adjusted earnings in the current quarter will range from 64 cents to 68 cents a share on revenue ranging from $9.1 billion to $9.5 billion. That would be a 1 percent to 5 percent increase from the prior year.

Shares of in Oracle rose 1.28 percent in extended trading after the numbers came out. They ended regular trading at $32.88.

In Tuesday’s conference call, the chief executive, Lawrence Ellison, said some of the erosion in the hardware division has been by design as Oracle weeded out some of the less profitable equipment. He assured analysts that hardware revenue would start increasing in the final quarter of Oracle’s fiscal year, the period spanning March through May. Sun’s Java programming language already has been paying off for the software side of Oracle’s business, according to Mr. Ellison.

“Sun has already proven to be the most strategic and profitable acquisition Oracle has ever made,” he said.

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Church Officials Call on Filipinos to Campaign Against Birth Control Law

MANILA — After losing a battle to stop the passage of a contentious birth control law, Roman Catholic Church officials on Tuesday dug in and instructed their millions of followers to campaign against the measure in communities, schools and homes.

“Let us intensify the moral spiritual education of our youth and children so that they can stand strong against the threats to their moral fiber,” Archbishop Socrates Villegas said in a statement. “Let us use all the means within our reach to safeguard the health of expectant mothers in our communities.”

The Philippine Congress passed legislation on Monday to help the country’s poorest women gain access to birth control. Each chamber of the national legislature passed its own version of the measure, and minor differences between the two must be reconciled before the measure goes to President Benigno S. Aquino III for his signature.

The measure had been stalled for more than a decade because of determined opposition from the church in this overwhelmingly Catholic country.

Birth control is legal and widely available in the Philippines for people who can afford it, particularly those living in cities. But condoms, birth control pills and other forms of contraception are sometimes kept out of community health centers and clinics by local government and Catholic Church officials.

The measure passed on Monday would stock government health centers, including those in remote areas, with free or subsidized birth control options for the poor. It would also require sex education in public schools and family-planning training for community health officers.

Archbishop Villegas, the vice president of the Catholic Bishops Conference of the Philippines, on Tuesday encouraged Catholics to resist the measure by disseminating information about natural family planning methods and warning people about “the hazardous effects of contraceptive pills on the health of women.”

“Let us conduct our own sex education of our children insuring that sex is always understood as a gift of God,” Archbishop Villegas stated. “Sex must never be taught separate from God and isolated from marriage.”

Bishop Gabriel V. Reyes, chairman of the conference’s Episcopal Commission on Family and Life, said after the vote Monday that “we need to explain to our fellow believers that they ought to refuse contraceptives even when they are being offered these.”

The Philippines has one of the highest birthrates in Asia, but backers of the legislation, including the Aquino administration, have said repeatedly that its purpose is not to limit population growth. Rather, they say, the bill is meant to offer poor families the same reproductive health options that wealthier people in the country enjoy.

Though lacking the numbers needed to defeat the legislation, lawmakers who opposed the measure sought to delay the vote. In one instance, an opposition senator proposed 35 amendments just before a vote was to take place.

Often the debate took bizarre turns, as when a congressman claimed that the birth control measure was a plot by the Philippine Communist Party to take over the government.

In another instance, a male senator requested removal of the phrase “satisfying sex” from a passage in the bill that referred to “safe and satisfying sex.” Several female senators opposed its removal, and the amendment was debated live on television while social media networks crackled with sarcastic commentary. “I am a Filipina,” Senator Miriam Santiago said in response to the amendment. “I am also a married woman, and I insist whoever is married to me should give me safe and satisfying sex, period.”

During a vote on the measure in the House of Representatives, the boxer and congressman Manny Pacquiao linked the birth control measure to his having been knocked unconscious on Dec. 8 by Juan Manuel Marquez during their W.B.O. world welterweight fight in Las Vegas.

“Some thought I was dead,” Mr. Pacquiao said in a speech explaining his vote against the measure. “What happened in Vegas strengthened my already firm belief in the sanctity of life.” He added: “Manny Pacquiao is pro-life. Manny Pacquiao votes no.”

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Church Officials Call on Filipinos to Campaign Against Birth Control Law

MANILA — After losing a battle to stop the passage of a contentious birth control law, Roman Catholic Church officials on Tuesday dug in and instructed their millions of followers to campaign against the measure in communities, schools and homes.

“Let us intensify the moral spiritual education of our youth and children so that they can stand strong against the threats to their moral fiber,” Archbishop Socrates Villegas said in a statement. “Let us use all the means within our reach to safeguard the health of expectant mothers in our communities.”

The Philippine Congress passed legislation on Monday to help the country’s poorest women gain access to birth control. Each chamber of the national legislature passed its own version of the measure, and minor differences between the two must be reconciled before the measure goes to President Benigno S. Aquino III for his signature.

The measure had been stalled for more than a decade because of determined opposition from the church in this overwhelmingly Catholic country.

Birth control is legal and widely available in the Philippines for people who can afford it, particularly those living in cities. But condoms, birth control pills and other forms of contraception are sometimes kept out of community health centers and clinics by local government and Catholic Church officials.

The measure passed on Monday would stock government health centers, including those in remote areas, with free or subsidized birth control options for the poor. It would also require sex education in public schools and family-planning training for community health officers.

Archbishop Villegas, the vice president of the Catholic Bishops Conference of the Philippines, on Tuesday encouraged Catholics to resist the measure by disseminating information about natural family planning methods and warning people about “the hazardous effects of contraceptive pills on the health of women.”

“Let us conduct our own sex education of our children insuring that sex is always understood as a gift of God,” Archbishop Villegas stated. “Sex must never be taught separate from God and isolated from marriage.”

Bishop Gabriel V. Reyes, chairman of the conference’s Episcopal Commission on Family and Life, said after the vote Monday that “we need to explain to our fellow believers that they ought to refuse contraceptives even when they are being offered these.”

The Philippines has one of the highest birthrates in Asia, but backers of the legislation, including the Aquino administration, have said repeatedly that its purpose is not to limit population growth. Rather, they say, the bill is meant to offer poor families the same reproductive health options that wealthier people in the country enjoy.

Though lacking the numbers needed to defeat the legislation, lawmakers who opposed the measure sought to delay the vote. In one instance, an opposition senator proposed 35 amendments just before a vote was to take place.

Often the debate took bizarre turns, as when a congressman claimed that the birth control measure was a plot by the Philippine Communist Party to take over the government.

In another instance, a male senator requested removal of the phrase “satisfying sex” from a passage in the bill that referred to “safe and satisfying sex.” Several female senators opposed its removal, and the amendment was debated live on television while social media networks crackled with sarcastic commentary. “I am a Filipina,” Senator Miriam Santiago said in response to the amendment. “I am also a married woman, and I insist whoever is married to me should give me safe and satisfying sex, period.”

During a vote on the measure in the House of Representatives, the boxer and congressman Manny Pacquiao linked the birth control measure to his having been knocked unconscious on Dec. 8 by Juan Manuel Marquez during their W.B.O. world welterweight fight in Las Vegas.

“Some thought I was dead,” Mr. Pacquiao said in a speech explaining his vote against the measure. “What happened in Vegas strengthened my already firm belief in the sanctity of life.” He added: “Manny Pacquiao is pro-life. Manny Pacquiao votes no.”

Read More..

DealBook: As Unit Pleads Guilty, UBS Pays $1.5 Billion Over Rate Rigging

UBS, the Swiss banking giant, announced a record settlement with global authorities on Wednesday, agreeing to a combined $1.5 billion in fines for its role in a multiyear scheme to manipulate interest rates.

In a sign that officials are increasingly taking a hard line against financial wrongdoing, the Justice Department also secured a guilty plea from the bank’s Japanese subsidiary, sending a warning shot to other big banks suspected of rate rigging. The UBS subsidiary, which agreed to plead to a single count of wire fraud, is the first unit of a big bank to agree to criminal charges in more than a decade.

The cash penalties represented the largest fines to date related to the rate-rigging inquiry. The fine is also one of the biggest sanctions that American and British authorities have ever levied against a financial institution, falling just short of the $1.9 billion payout that HSBC made last week over money laundering accusations.

The severity of the UBS penalties, authorities said, reflected the extent of the problems. The government complaints laid bare a scheme that spanned from 2005 to 2010, describing how the bank reported false rates to squeeze out extra profits and deflect concerns about its health during the financial crisis.

“The findings we have set out in our notice today do not make for pretty reading,” Tracey McDermott, the enforcement director for the Financial Services Authority of Britain, said in a statement. “The integrity of benchmarks,” she said, “are of fundamental importance to both U.K. and international financial markets. UBS traders and managers ignored this.”

The UBS case reflects a pattern of abuse that authorities have uncovered as part of a multi-year investigation into rate-rigging. The inquiry, which has ensnared more than a dozen big banks, is focused on key benchmarks like the London interbank offered rate, or Libor. Such rates are used to help determine the borrowing rates for trillions of dollars of financial products like corporate loans, mortgages and credit cards.

In the UBS matter, the wrongdoing occurred largely within the Japanese unit, where traders colluded with other banks and brokerage firms to tinker with Yen denominated Libor and bolster their returns. During the 2008 financial crisis, UBS managers also “inappropriately gave guidance to those employees charged with submitting interest rates, the purpose being to positively influence the perception of UBS’s creditworthiness,” according to authorities.

In a series of colorful e-mails and phone calls, traders tried to influence the rate-setting process. “I need you to keep it as low as possible,” one UBS trader said to an employee at another brokerage firm in September 2008, according to the complaint filed by the Financial Services Authority. “If you do that,” the trader promised to pay “whatever you want. I’m a man of my word.”

As the employees carried out the alleged manipulation, they also celebrated the efforts, with one trader referring to a partner in the scheme as “superman.” “Be a hero today,” he urged, according the complaint by regulators.

The British and Swiss authorities released their complaints on Wednesday before the bank’s shares began trading in Switzerland. American authorities are expected to release their own complaints later Wednesday in Washington.

In a statement, UBS highlighted its cooperation with the investigation. The firm previously stated that it made provisions of 897 million Swiss francs ($975 million) to cover potential legal and regulatory fines.

“We discovered behavior of certain employees that is unacceptable,” the chief executive of UBS, Sergio P. Ermotti, said in the statement. “We deeply regret this inappropriate and unethical behavior. No amount of profit is more important than the reputation of this firm, and we are committed to doing business with integrity.”

The UBS case provides a lens to view broader problems in the rate-setting process, which affects how consumers and companies borrow money around the world. In June, authorities scored their first Libor settlement, securing a
$450 million payout from Barclays, the big British bank.

The UBS case — the product of cross-border collaboration among regulators and federal prosecutors – is more than triple the earlier fine.

The Commodity Futures Trading Commission and the Justice Department leveled about $1.2 billion in combined fines. The Financial Services Authority of Britain fined the bank $260 million. The Swiss Financial Market Supervisory Authority, which does not have the power to fine, recovered $65 million in the bank’s supposed ill-gotten gains.

The Justice Department’s criminal division, which arranged the guilty plea with the Japanese subsidiary, also struck a non-prosecution agreement with the parent company. The exact total of the penalties was unclear, because the department has not yet released its settlement documents.

The Justice Department’s case is also expected to take aim at some of the bank’s traders, including 33-year-old Thomas Hayes. The Justice Department plans to announce charges against Mr. Hayes, the former UBS and Citigroup trader, who featured prominently in the investigation, according to people with knowledge of the matter. He was arrested in London last week and later released on bail. Other UBS employees have been suspended or fired following an internal investigation.

The fallout from the UBS case is expected to ratchet up the pressure on some of the world’s largest financial institutions and spur settlement talks across the banking industry.

The Royal Bank of Scotland has said it expects to pay fines before its next earnings statement in February, while Deutsche Bank has set aside an undisclosed amount to cover potential penalties. Some American institutions, including Citigroup and JPMorgan Chase, also remain in regulators’ crosshairs.

The UBS case has exposed the systemic problems with the rate-setting process. Over a 6-year period, UBS traders targeted the major currencies that form the Libor system, including the U.S. dollar denominated rate. The bank was also cited for attempting to manipulate other benchmarks like the Euro Interbank Offered Rate, or Euribor, and the Tokyo Interbank Offered Rate, or Tibor.

Much of the activity took place in the bank’s Japanese unit. Authorities said four UBS traders colluded to manipulate submissions to Yen Libor. The individuals made more than 1,900 requests to brokers and other banks to alter the rate, according to regulatory filings. As part of their efforts, UBS employees made quarterly payments of £15,000 ($24,000) to outside brokers involved in the rate-rigging for at least 18 months for their help, the complaint said.

To avoid arousing suspicion, UBS employees routinely made small changes to submissions, the complaint details. The individuals, who communicated with colleagues about the rate-setting through emails and instant messages, also altered rate submissions to benefit traders at other banks.

The Japanese unit’s guilty plea for wire fraud follows frantic last-minute negotiations last week between senior UBS officials and American authorities. The actions detailed in the complaint emboldened the Justice Department to seek the guilty plea from the Japanese unit. By forcing the plea from the firm’s Japanese subsidiary, federal authorities sent a clear message about the level of wrongdoing, but stopped far short of shutting UBS out of the American markets.

Still, the steep sanctions come as a surprise, given the bank’s cooperation with investigators.

Since first announcing that it was the subject of Libor investigations, the Swiss bank has eagerly worked with authorities in a bid for leniency. UBS, for example, had received conditional immunity from the Justice Department’s antitrust unit, a deal that did not apply to the Justice Department’s criminal division.

The case presents the latest setback for UBS.

The Swiss bank already agreed to a $780 million fine in 2009 with American authorities to settle charges that it helped American clients avoid tax. The firm also announced a $2.3 million loss last year related to illegal trading activity by a former employee, Kweku M. Adoboli. Mr. Adoboli subsequently was sentenced to seven years, and British authorities fined UBS $47.5 million over the scandal.

UBS said it expected to report a net loss of up to $2.7 billion in the fourth quarter of the year because of the costs related to Libor and other legal matters. The figure includes around $2.3 billion of provisions of legal and regulatory costs, as well as $548 million in restructuring charges.

In the wake of the Libor scandal, UBS has been forced to beef up its compliance and rate-setting procedures, according to the Swiss regulator. The bank has also fired individuals connected to the rate-rigging

“We are pleased that the authorities gave us credit for the important and positive changes we have already made,” the chairman of UBS, Axel Weber, said in a statement. “I have zero tolerance for inappropriate and unethical behavior of any of our staff.”

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Hard Times in Spain Force Feuding Couples to Delay Divorce

SABADELL, SPAIN — Esther Fernández, 45, was desperate for a divorce. A hairdresser, she had fallen in love with another man, who was dying of cancer.

Her husband, Gaby Cuadrado, 47, had lost his factory job. Selling their house in a depressed market in this sleepy city outside Barcelona was impossible. Neither could afford a second home. They were already struggling to pay their mortgage. An expensive divorce was out of the question.

So for two years she stuck it out, leaving before dawn, hiding from Mr. Cuadrado, who said he became so obsessed with his wife that he would spy on her from his car. She had panic attacks. “I felt trapped,” she said.

It was even worse for him. The situation, Mr. Cuardado said, pushed him to the brink of suicide. “Being forced to live with a woman I loved who had rejected me was psychological torture,” he said. They finally divorced in November, after moving to tiny apartments in bad parts of town.

If marriage is for better or worse, richer or poorer, then these are the worst of times for a poorer Spain. Couples are paying the emotional price, especially when they cannot afford the price of divorce.

Fewer of them can. Accounts from judges, divorce lawyers and therapists — as well as couples themselves — indicate that many Spaniards are staying in troubled relationships longer as a result of an economic crisis that has ground on for nearly five years.

Last year, the number of divorces in Spain dropped 17 percent compared with 2006, according to the Spanish Judicial Council, a national association that represents the country’s judges. The divorce rate jumped in 2006 after changes to the divorce law made it easier to split up in 2005, but it has fallen with the crisis in Spain’s economy, according to the council.

“There is no doubt that the crisis is pushing people to stay together,” said José María Redondo, the council’s spokesman, who attributed the drop in the divorce rate to a burst housing bubble and hard economic times.

The crisis is not only slowing divorces but also transforming the process, according to divorce lawyers. Judges are reducing alimony payments and dueling spouses have moved from fighting over property to sparring over the critical issue of who assumes debts.

Some couples are literally dividing their homes in two, by sticking tape across the floor, said Álvaro Cavia, a leading Barcelona-based divorce lawyer. Unable to afford a divorce, other couples live together even as they engage openly in other romantic relationships.

Squabbles over money — or the lack of it — are the biggest source of contention among couples seeking to mend fraying relationships, according to Myka Pedrero, a family psychologist in a suburb of Barcelona, who counseled Ms. Fernández, her sister.

It is worst for jobless couples, she said, not just because of the money strains, but because they often spend all day together at home, treading on each others’ nerves. When warring couples share the same quarters it is especially confusing for children unable to accept their parents’ break-ups, she said.

“The crisis makes things worse as it adds huge pressures to marriages when you don’t have a job and can’t pay the bills,” she said. “When people who want to split are forced to stay together it pollutes the whole ecosystem that is the family and drives both the man and the woman crazy.”

Until the crisis exploded, legal experts say, divorce was widely accepted as the easiest exit from a bad marriage after decades during which it was prohibited during the Franco dictatorship.

Divorce was first legalized in Spain 1981 but the law required couples to legally separate first, a period of reflection aimed at safeguarding the family in a socially conservative, Catholic country. The change in the law in 2005 has allowed couples to get “express divorces” without any separation. Couples need to have been married for at least three months to qualify.

Even when couples can afford a divorce, the economic crisis has added new complications.

Silvia Taulés contributed reporting from Barcelona.

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