The penalties are likely to exceed $1.5 billion, the amount UBS Group AG (UBSG.VX) paid in 2012, the source said. Negotiations also involve the possibility of a Deutsche UK subsidiary pleading guilty, the person said. Deutsche bank executives could be targeted for discipline, but many of them have already left the bank, the source said. Germany’s largest lender may be among the last to settle with the authorities over the Libor manipulation scandal.