PDA

View Full Version : Libor, UK banks and the Tory connections



PaddyJoe
01-07-2012, 12:12 AM
The scandal over wholesale interest rate manipulation is widening to pull in senior Conservative party figures, according to the Independent on Sunday

The Independent on Sunday has learnt that the Conservative deputy chairman, Michael Fallon, is a board member of a leading brokerage firm that dominates the rates market and which has been asked to co-operate with the Financial Services Authority's investigation into malpractice across the City.

Mr Fallon is a close ally of David Cameron and a senior member of the Treasury select committee that will question the Barclays chief executive, Bob Diamond, this week, prompting demands from Labour that he should declare an interest. The Prime Minister continues to resist calls from Ed Miliband for a Leveson-style inquiry into rate-fixing

The questions over the role of Mr Fallon followed the revelation that one of the Prime Minister's closest advisers, the former Tory party treasurer Michael Spencer, is under scrutiny by the FSA. Mr Spencer's brokerage firm ICAP is one of a number of institutions alleged to have helped to manipulate bank interest rates while he was treasurer of the Conservatives. Mr Cameron said yesterday that he needed to "think this through carefully" whether there should be a judge-led inquiry into the Libor scandal
Tories involved in City scandals. Who would a thunk it?
:)
http://www.independent.co.uk/news/uk/politics/exclusive-top-tories-dragged-into-banking-scandal-7901941.html

C. Flower
01-07-2012, 09:21 AM
I hear this morning that Cameron wants a referendum on the EU, to do away with all the social protection aspects of EU legislation.

What do people expect when the let parties run by old Etonians get elected ?

C. Flower
01-07-2012, 11:11 AM
Rigging the Libor rate (chummy emails leaked saying: "Thanks a lot, I owe you a bottle of Bolly for that") is another confirmation that the financial markets, world wide, are an Old Boys' Thieves Kitchen. It reminds me a little of the Lloyds scandal, in which all the risky business was parcelled out to the small players, who were comprehensively bankrupted, while the big insider boys kept the plums.

morticia
01-07-2012, 09:08 PM
I feel vindicated. Had been saying for ages that the proverbial would eventually catch up with the banksters abroad and this is precisely what appears to be happening.

Now, to really make my day, a little something involving Deutsche or Commerzbank....

Schadenfreude....

ang
01-07-2012, 09:29 PM
I feel vindicated. Had been saying for ages that the proverbial would eventually catch up with the banksters abroad and this is precisely what appears to be happening.

Now, to really make my day, a little something involving Deutsche or Commerzbank....

Schadenfreude....

All underway with euribor too morticia so far the ECB have refused to release a list of all banks under investigation-


European Commission seized documents from several major banks yesterday. Among those raided was Deutsche Bank's London office, Reuters reported a source saying

Read more: http://articles.businessinsider.com/2011-10-19/wall_street/30296755_1_libor-interest-rates-banks#ixzz1zPNx66Jo


JPMorgan Chase & Co., Deutsche Bank AG (DBK) and HSBC Holdings Plc are among at least seven firms facing a Canadian probe into whether they participated in a conspiracy to manipulate prices on interest-rate derivatives. The nation’s Competition Bureau is investigating the firms’ conduct between 2007 and 2010, according to documents it filed with the Ontario Superior Court in May.

http://www.bloomberg.com/news/2012-02-15/libor-investigation-said-to-expose-collusion-lack-of-internal-controls.html

DCon
01-07-2012, 09:44 PM
1 down..many more to go


Barclays' Chairman Marcus Agius wil step down immediately. From the WSJ: "Political and investor pressure has mounted on the management of U.K.-based Barclays since the settlement was announced Wednesday. The announcement of Mr. Agius's departure could come as soon as Monday, said one of the people. Mr. Agius, 65 years old, a British-Maltese banker who formerly worked at Lazard Ltd., has led the bank since 2007, steering Barclays through the 2008 financial crisis and avoiding the direct state bailouts that were needed by many of its global peers."

http://www.zerohedge.com/news/barclays-chairman-lie-borgates-first-victim

MPB
01-07-2012, 11:41 PM
1 down..many more to go



http://www.zerohedge.com/news/barclays-chairman-lie-borgates-first-victim

Makes Mr Aigus out to be some sort of Banking hero.

" saved Barclays from a bailout " " led Barclays through 2008 crisis ". Considering Barclays were stealing money, at the time of their salvation, you would have to wonder about, how these Banks were saved.

I am willing to bet, that this will bring down the Tory Govt.

And considering the contempt in which the Labour Party is held, Britain is in major trouble.

PaddyJoe
02-07-2012, 10:11 PM
This is going to get interesting. Diamond is not going to go quietly
FT front page for Tuesday:



http://i46.tinypic.com/m55dy.jpg

DCon
03-07-2012, 06:43 AM
This is going to get interesting. Diamond is not going to go quietly
FT front page for Tuesday:


Diamond just quit Barclays with immediate effect

http://www.forexlive.com/blog/2012/07/03/bob-diamond-quits-barclays-with-immediate-effect/

Says he will still participate in the government inquiry. He is due to appear tomorrow

DCon
03-07-2012, 07:54 AM
Lol


john prescott ‏@johnprescott

i thought 'the buck stopped' with marcus agius? Now he's unresigned and bob diamond's gone. Did agius pass the buck to bob?

Hapax
03-07-2012, 08:44 AM
Some City experts believe that Bob Diamond's resignation is partly due to a major breakdown in relations with the Bank of England in the last couple of days.

And that could make Diamond's appearance tomorrow at the Treasury Select Committee even more explosive.



A chief executive of Barclays could not declare war on the Bank of England. A former chief executive can.

Note: Bob's resignation is with immediate effect and he seems to be relishing the opportunity to have his say at the Treasury Committee tomorrow. Get your tickets now.

http://www.guardian.co.uk/business/2012/jul/03/bob-diamond-quits-barclays

DCon
03-07-2012, 08:48 AM
Fun and games ahead?


Nils Pratley, our financial editor, believes this morning's resignation gives Diamond much more leeway to reveal exactly what happened. He writes:

A chief executive of Barclays could not declare war on the Bank of England. A former chief executive can.

Note: Bob's resignation is with immediate effect and he seems to be relishing the opportunity to have his say at the Treasury Committee tomorrow. Get your tickets now.



http://www.guardian.co.uk/business/2012/jul/03/bob-diamond-quits-barclays

TotalMayhem
03-07-2012, 10:14 AM
A good start would be moving all bank-related threads from politics/economics boards to Society > Crime & Punishment.

DCon
03-07-2012, 11:26 AM
I'd like to see Arry get it!

Is Rich Ricci a legit banker name?


Here are the latest odds from Ladbrokes on potential replacements for Bob Diamond.

Anthony Jenkins 2/1 (chief executive of Barclays retail and business banking)
Bill Winters 5/2
Naguib Kheraj 4/1
Christopher Lucas 6/1
Rich Ricci 6/1
Jerry del Missier 16/1
Gordon Brown 100/1
Harry Redknapp 1000/1

C. Flower
03-07-2012, 11:31 AM
A good start would be moving all bank-related threads from politics/economics boards to Society > Crime & Punishment.

Good point. Banking and financial services has been a thieves kitchen for at least a century.

At this stage, it is quarrying out the "real economy".

Baron von Biffo
03-07-2012, 11:46 AM
I'd like to see Arry get it!

Is Rich Ricci a legit banker name?

No sign of Fingers or Seanie on that list. Don't they want talent?

DCon
03-07-2012, 11:48 AM
an apt quote


“if you give a man a gun, he can rob the bank, if you give a man a bank he can rob the world...”

DCon
03-07-2012, 11:49 AM
No sign of Fingers or Seanie on that list. Don't they want talent?

Or Cowen.

Imagine the job he could do!

DCon
03-07-2012, 02:57 PM
Diamond's daughter is on the Twitter, and irony, offensive


Nell Diamond ‏@nelliediamond

No one in the world I admire more than my dad. 16yrs building Barclays. Shame to see the mistakes of few tarnish the hard work of so many.

https://twitter.com/#!/nelliediamond

Hapax
03-07-2012, 05:28 PM
Guardian update from a couple of hours back:


Barclays has dragged the Bank of England, and the last Labour government, deeper into the Libor scandal.

Its submission to the Treasury Select Committee includes an email apparently written by Bob Diamond on 29 October 2008 (when the crisis was raging), following a telephone call with Paul Tucker of the Bank of England. In the message, Diamond writes that Tucker told him that "a number of senior officials in Whitehall" had expressed concern over the Libor numbers that Barclays had been reported (the rate at which other banks would lend to it).



The email goes on to show that Diamond implied that other banks have been submitting rates that did not reflect their true cost of borrowing, and concludes by suggesting that Tucker had suggested that Barclays Libor submissions did not need to be so high.

http://www.guardian.co.uk/business/2012/jul/03/bob-diamond-quits-barclays#block-56

They go on to remark that "This is dynamite" while noting that the BOE hadn't yet (at 4.32 p.m.) had time to respond.

DCon
03-07-2012, 08:58 PM
we woz only following orders

https://p.twimg.com/Aw6DZjfCAAAgM1C.jpg:large

DCon
03-07-2012, 11:17 PM
The City might be a Village soon

https://p.twimg.com/Aw6atCOCMAA-nAf.jpg

DCon
04-07-2012, 11:07 AM
Like


A flashmob has descended on one of Barclays' London branches, with members withdrawing their money en masse.

The flashmob has been organised via Twitter and Facebook by the "Move Your Money UK" organisation, which is calling on Brits to abandon the big high street banks in favour of more "ethical" alternatives such as credit unions, building societies and the Co-op.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9374516/Bob-Diamond-questioned-by-MPs-on-Barclays-Libor-scandal-live.html

Baron von Biffo
04-07-2012, 11:13 AM
Like

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9374516/Bob-Diamond-questioned-by-MPs-on-Barclays-Libor-scandal-live.html

Hmmm, people who can drop everything to respond to a twitter campaign...

Will Barclays be able to cope with a run on funds that could reach 4 figures?

DCon
04-07-2012, 11:19 AM
Cammy baby blaming too much regulation


David Cameron at PMQs: Got to get to bottom of what happened [on Libor]. But going back to square one [too much regulation] would be a mistake. Banking scandal is appalling. People want to know crime in our banks will be pursued and punished like crime on our streets. I want us to legislate on this, starting next year."

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9374516/Bob-Diamond-questioned-by-MPs-on-Barclays-Libor-scandal-live.html

PaddyJoe
04-07-2012, 02:18 PM
Bob Diamond is getting grilled by MPs at the moment. He's drinking a lot of water;)
http://www.zerohedge.com/news/live-webcast-bob-diamond-testimony-lieborgate

DCon
04-07-2012, 08:55 PM
Someone used their artistic licence to liven up London's bikes

http://d3j5vwomefv46c.cloudfront.net/photos/full/611097638.jpg?key=600800&Expires=1341436262&Key-Pair-Id=APKAIYVGSUJFNRFZBBTA&Signature=s-DVDbxpLsC6Zv9mhg6niLRDdk-zA~SZ~FtpP9Kf19o6wT~gkmKWy42ZSfiiUc1QaFUgcJ~7qT8Vp DXpDEG5Foe0Gn8qVr4ZGAL67hXZRU77jiwhtcfHjbwQUkjIyna ~i~FXj7H7tOVNUTPxI7KmrnC2IpBLglxughr4mlf1pa0_

DCon
04-07-2012, 10:09 PM
The Bat Simpson defence is working so far

https://p.twimg.com/Aw_aJMaCAAEOIns.jpg:large

DCon
05-07-2012, 08:46 AM
honesty at last!

https://p.twimg.com/AxBwLTxCAAAmN49.jpg

Ephilant
06-07-2012, 11:55 AM
Apparently banned in quite a few countries, including the UK.

http://www.youtube.com/watch?v=0oV2mI0IYp8

ang
06-07-2012, 03:59 PM
Germany pushes Libor probe of Deutsche Bank -


German markets regulator BaFin is conducting a special probe of Deutsche Bank (DBKGn.DE) as part of a wider investigation into possible manipulation of the London Inter Bank Offered Rate (Libor), two people familiar with the matter said on Friday.

http://www.reuters.com/article/2012/07/06/us-deutschebank-libor-idUSBRE8650OH20120706

barrym
07-07-2012, 10:07 AM
Of course, I presume the AIB, BoI, etc., were not involved in this, after all they are/were well regulated. I'd say the lads down in the docks were/are up to their Bollinger in it, grist to their mill.

The whole business of self regulation is and was a joke. OTOH how do you decide the LIBOR or €BOR if you don't ask and they tell porkies....

Did anyone see Newsnight last night? straight talking young fella from the London Indo, said it as it is to ex Goldman, ex cheating MP and a 'faith writer' who/what she, nice legs??

Ephilant
07-07-2012, 05:50 PM
Diamond says he only found out last month about the bank(s) rigging the rates????

This is a 2008 headline from Bloomberg. 1 month or 4 years?

http://www.bloomberg.com/apps/news?pid=newsarchive&refer=home&sid=aMSoLbYpbHWk

DCon
08-07-2012, 07:57 PM
Germany pushes Libor probe of Deutsche Bank -



http://www.reuters.com/article/2012/07/06/us-deutschebank-libor-idUSBRE8650OH20120706

Some staff dismissed. DB, like Barclays, will probably pretend that it was a few corrupt traders and not systemic corruption


Two Deutsche Bank employees have been suspended after it used external auditors to examine whether staff were involved in manipulating interbank lending rates, German magazine Der Spiegel reported, citing no sources." Now what can possibly go wrong if the biggest bank in the world, with just shy of $3 trillion in "assets", which just happens to have a 1.68% Core Tier 1 ratio, is suddenly thrust smack in the middle of the scandal that the Economist just aptly named the finance industry's "tobacco moment"?

http://www.zerohedge.com/news/worlds-biggst-bank-just-got-thrown-lieborgate-mess

C. Flower
08-07-2012, 10:33 PM
Some staff dismissed. DB, like Barclays, will probably pretend that it was a few corrupt traders and not systemic corruption

http://www.zerohedge.com/news/worlds-biggst-bank-just-got-thrown-lieborgate-mess

One million banking jobs in the UK. It's being taken seriously there.

It was never credible that rates could be fiddled in one place, while everyone else toed the line.



The Swiss Financial Market Supervisory Authority, known as Finma, contacted UBS AG (UBSN) (http://www.bloomberg.com/quote/UBSN:VX)and Credit Suisse Group AG (CSGN) (http://www.bloomberg.com/quote/CSGN:VX) regarding investigations into how the Libor interest rate was set, Der Sonntag reported.
Finma sent both banks detailed questions about the London interbank offered rate, the newspaper said, citing people close to the matter.Regulators in the U.S., Europe and Asia are investigating whether banks that help set key rates for $360 trillion of securities were involved in collusion. Barclays Plc was fined $451 million in the U.K. and U.S. on June 27 for submitting false Libor rates.

http://www.bloomberg.com/news/2012-07-08/ubs-credit-suisse-questioned-by-finma-over-libor-sonntag-says.html






Libor-rigging went on until 2010, claims Canadian watchdog

Investigation in Canada claims rate-fixing went on for a year after Barclays traders were found to have colluded in such methods

HSBC traders are allegedly implicated in rate-rigging, according to Canadian authorities, a claim the bank denies. Photograph: Luke Macgregor/Reuters

An investigation in Canada (http://www.guardian.co.uk/world/canada) alleges that interest-rate rigging by staff working for British banks and financial institutions continued until at least June 2010, more than a year after Barclays (http://www.guardian.co.uk/business/barclay)' derivatives traders were found to have colluded in such practices.

DCon
09-07-2012, 07:31 AM
Brussels talking tough and removing loopholes



Brussels is wading into the interest rate-rigging scandal rocking the City of London with a proposal to outlaw attempts to manipulate market indices across the EU and a fundamental review of the rules on how Libor is set.

Michel Barnier, the EU commissioner overseeing financial services, will amend reforms to EU market abuse rules so that potential “loopholes” are closed and criminal sanctions specifically cover tampering with indices such as Libor and Euribor.

http://www.ft.com/cms/s/0/fb4df786-c913-11e1-a768-00144feabdc0.html#ixzz206mOXugE

DCon
09-07-2012, 10:34 AM
Sky claiming to have emails between Diamond and UK Central Bank officials


Mark Kleinman ‏@MarkKleinmanSky

EXCLUSIVE: I've obtained emails between Bob Diamond, Paul Tucker and Jeremy Heywood ahead of TSC session this afternoon. Full story soon.

ang
10-07-2012, 01:55 PM
Hmmmm


(Reuters) - The Federal Reserve Bank of New York may have known as early as August 2007 that the setting of global benchmark interest rates was flawed. Following an inquiry with British banking group Barclays Plc in the spring of 2008, it shared proposals for reform of the system with British authorities.

http://www.reuters.com/article/2012/07/10/us-markets-credit-barclays-idUSBRE86907120120710

Kev Bar
10-07-2012, 06:33 PM
"The finance industry's tobacco moment"

Nicely put by the Economist.

Count Bobulescu
11-07-2012, 07:14 PM
The Fed did know in 2007.

The Federal Reserve Bank of New York said Tuesday it had received word as early as 2007 from the British bank Barclays about problems with the benchmark interest rate that underpins much of global lending.

The disclosure came as Washington policymakers began to increase their scrutiny of the role of regulators in the scandal surrounding the London interbank offered rate, or Libor.
Every day, major banks around the world submit their borrowing costs, which are then used to compute an interbank rate. Barclays was accused of concealing its borrowing costs — in an effort to drive up profits and send signals that the bank was healthier than it might have been.
http://www.washingtonpost.com/business/economy/in-2007-new-york-fed-was-told-about-problems-with-libor/2012/07/10/gJQA4dJebW_story.html?wpisrc=nl_headlines

DCon
11-07-2012, 07:39 PM
The lawsuits are starting Stateside.

The rest of the world will take notice


Lawsuits filed by municipalities, pension funds and hedge funds have been consolidated into related cases against major banks

As unemployment climbed and tax revenue fell, the city of Baltimore laid off employees and cut services in the midst of the financial crisis. Its leaders now say the city’s troubles were aggravated by bankers’ manipulation of a key interest rate linked to hundreds of millions of dollars the city had borrowed.

Baltimore has been leading a battle in Manhattan federal court against the banks that determine the interest rate, the London interbank offered rate, or Libor, which serves as a benchmark for global borrowing and stands at the center of the latest banking scandal. Now cities, states and municipal agencies nationwide, including Massachusetts, Nassau County on Long Island, and California’s public pension system, are looking at whether they suffered similar losses and are weighing legal action.

http://business-standard.com/india/news/scramble-for-damages-starts-over-libor-fixing-scandal-/480178/

morticia
11-07-2012, 09:06 PM
Tbh, this reminds me of the whole Anglo golden circle borrowing to buy their own shares thing, where our fin reg allegedly turned a blind eye in the hopes the problem would Go Away.

Except this is on a Much Larger Scale....

Count Bobulescu
12-07-2012, 07:42 PM
The lawsuits are starting Stateside.

The rest of the world will take notice

http://business-standard.com/india/news/scramble-for-damages-starts-over-libor-fixing-scandal-/480178/
There is speculation that CALPERS - California Public Employees Retirement System - the largest investor in the US stock markets may be about to file suit.


Dozens of states, cities and other government entities are exploring whether they lost money because of the alleged manipulation of a crucial benchmark used to set interest rates on hundreds of trillions of dollars worth of loans and investments.

The Baltimore suit has been consolidated with dozens of cases filed by others that say they suffered financial losses from the alleged scheme, including pension funds, municipalities and mutual funds.

“We have no sense of scale of loss,” said Michael Hausfeld, the lead attorney on the complaint. “At this point, it is too early to estimate. We know the volume of transactions is huge.”

Since the suit was consolidated in the spring, Hausfeld said he has heard from dozens of other government entities trying to determine whether they were hurt financially and should also bring legal action.
http://www.washingtonpost.com/business/economy/baltimore-takes-lead-in-suit-against-banks-over-alleged-libor-manipulation/2012/07/11/gJQAN3V7dW_story.html?wpisrc=nl_headlines

Count Bobulescu
12-07-2012, 08:32 PM
http://www.washingtonpost.com/blogs/ezra-klein/files/2012/07/libornyfr1.jpg


As I mentioned in my explainer last week, the London InterBank Offer Rate (or Libor), which Barclay’s and other banks stand accused of manipulating both before and during the financial crisis, is an average of the rates at which London banks lend to each other. In 2008, a competitor, the New York Funds Rate (NYFR) emerged, which did much the same thing with interbank lending in New York.

The main difference is that the rates from which NYFR is calculated are submitted anonymously. The idea is that the main reason for banks to artificially raise or lower their rate reports, especially during a nascent financial crisis is to signal their institution’s strength, which is impossible if the reports are anonymous. The Center for Geoeconomic Studies at the Council on Foreign Relations has thrown together a chart comparing the two throughout 2008. Most of the time, they’re extremely close to each other. Then they diverge at the exact point in time that banks are alleged to have manipulated Libor:

Interestingly, the economists Connan Snider of UCLA and Thomas Youle of the University of Minnesota released a paper two years ago, well before the scandal broke, using the NYFR-Libor discrepancy to argue that Libor was being manipulated to improve bank trading positions. Way to beat the Justice Department to it, guys.
http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/07/11/the-smoking-gun-that-libor-was-manipulated-hint-its-a-chart/

http://www.washingtonpost.com/blogs/ezra-klein/files/2012/07/libornyfr1.jpg

DCon
12-07-2012, 11:09 PM
22 Billion..we will be talking about real money before long

https://p.twimg.com/AxoxPDCCAAE2Gkk.jpg:large

Count Bobulescu
13-07-2012, 03:14 AM
Geithner knew, and recommended changes for LIBOR to BOE in 2008.

While president of the Federal Reserve Bank of New York, Timothy F. Geithner pressed British regulators to reform the way it calculated a critical global benchmark called the London interbank offered rate, or Libor, according to a June 1, 2008 e-mail obtained by The Washington Post.

Writing to the head of the Bank of England, among others, Geithner made six recommendations, which included eliminating incentives that could encourage banks to manipulate the rate and to establish a “credible reporting procedure.”

“We would welcome a chance to discuss these and would be grateful if you would give us some sense of what changes are possible,” Geithner wrote.

http://www.washingtonpost.com/business/economy/geithner-drawn-into-libor-scandal/2012/07/12/gJQArDhbgW_story.html?hpid=z2

barrym
14-07-2012, 08:38 AM
re Geithner -

Any thoughts on why nothing (appears to have) happened? Maybe he was persuaded that US banks could make money too??

I have referred elsewhere to a documentary - Inside Job - shows how Geithner was in the pocket of the banks, he was boss of the NY Fed when Lehmann went belly up....

Count Bobulescu
15-07-2012, 04:31 PM
AS REGULATORS ramp up their global investigation into the manipulation of interest rates, the US Justice Department has identified potential criminal wrongdoing by big banks and individuals at the centre of the scandal.
The department's criminal division is building cases against several financial institutions and their employees, including traders at Barclays, according to government officials who spoke on the condition of anonymity because the investigation is continuing.
The authorities expected to file charges against at least one bank later this year, one official said.


Read more: http://www.smh.com.au/business/us-building-case-against-bankers-in-libor-scandal-20120715-224b2.html#ixzz20i2ai0AP

Ephilant
15-07-2012, 05:02 PM
Have these guys not read the script? Bankers don't get charged, they get bonuses...

DCon
24-07-2012, 05:39 AM
Reuters have hired the man responsible for LIBOR at the BBA


There was a time when regulators caught red-handed abusing their privileges, aka, doing nothing in the face of glaring malfeasance, would quietly fade away only to even more quietly reappear, sans press release, as a third general counsel or some other C-grade menial role paying a minimum 6 figure compensation to the individual for years of doing nothing. This is no longer the case: it appears that the best such exposed "regulators" can hope for going forward is to get media positions. Such is the case with John Ewan. Who is John Ewan? None other than the director "responsible for the management of the setting of Libor" at the British Bankers' Association.


In other words, once the regulators are done with the BBA, a brief inquiry into Reuters may be next, which on top of being an instrumental part of the daily Libor fixing dissemination process, has just hired one of the most contentuous former BBA employees. This promises to be very amusing because if nothing else, the media turning on itself always yields the most theatric results. Naturally by hiring Ewan, Reuters is essentially inviting attacks on its own set of Libor-practices.

http://www.zerohedge.com/news/mr-libor-leaves-british-banker-association-goes-reuters

Count Bobulescu
24-07-2012, 09:46 PM
GEITHNER FACES LIBOR INTERROGATION. Treasury Secretary Timothy Geithner has emerged at the center of congressional inquiry into whether the Federal Reserve Bank of New York appropriately handled its detection that banks were rigging Libor, a benchmark interest rate, when he was running the agency in 2007. He faces a hostile Congress at back-to-back hearings before the House Financial Services and Senate Banking committees on Wednesday and Thursday respectively, which could be personally damaging and have ricocheting effects on the Obama administration. Republicans see a chance to blame a key Obama administration official for failing to hold the financial industry accountable while scoring populist points for being seen as going after the big banks. Read more

http://influencealley.nationaljournal.com/2012/07/look-for-geithner-to-take-a-be.php

MPB
25-07-2012, 03:34 PM
I see were Tomothy Geithner is admitting that he knew about the risk to libor rate interference in 2008.

DCon
28-07-2012, 02:52 PM
Will the UK sue itself I wonder?


Now, it is becoming clear that traders from at least two other banks - UK-based Royal Bank of Scotland and Switzerland's UBS - played a central role.

Among them, the three banks employed more than a dozen traders who sought to influence rates in either dollar, euro or yen rates.


http://www.irishtimes.com/newspaper/breaking/2012/0728/breaking12.html


The UK Government became the majority shareholder of RBS in November 2008 and now own 67% of ordinary shares.

http://www.investors.rbs.com/equity_statistics

DCon
28-07-2012, 02:52 PM
Will the UK sue itself I wonder?


Now, it is becoming clear that traders from at least two other banks - UK-based Royal Bank of Scotland and Switzerland's UBS - played a central role.

Among them, the three banks employed more than a dozen traders who sought to influence rates in either dollar, euro or yen rates.


http://www.irishtimes.com/newspaper/breaking/2012/0728/breaking12.html


The UK Government became the majority shareholder of RBS in November 2008 and now own 67% of ordinary shares.

http://www.investors.rbs.com/equity_statistics

Count Bobulescu
31-07-2012, 07:38 PM
The trickle of Libor lawsuits is about to become a deluge. “Lawsuits are mounting against some of the world's biggest banks over the ma-nipu-la-tion of the global interest rate known as Libor as smaller lenders, municipalities and investors take stock of losses tied to the widening scandal. The cases are believed to be a trickle before an oncoming deluge of civil litigation that will beset the world's largest banks for years. Yet the ultimate problem for the accused may not be the millions they pay in damages but rather the cloud of uncertainty looming over their business. Already there is talk of the government stepping in to oversee a global settlement, just as it did in the mortgage robo-signing scandal. But it took years for regulators to reach a nationwide mortgage settlement. And that settlement involved the cooperation only of states, not countries, which means the banking industry could be mired in legal action for a while.” Danielle Douglas in The Washington Post.

http://www.washingtonpost.com/business/economy/libor-civil-suits-starting-to-grow/2012/07/30/gJQAHWFYLX_story.html?wpisrc=nl_wonk

A UK review of Libor will consider scrapping the current system. “Libor, the London Interbank Offered Rate, could be scrapped altogether and replaced with an interest rate that is set using actual trades, according to a review set up by the UK government. Ministers on Monday announced the remit for Martin Wheatley to investigate the Libor benchmark rate, which has been heavily criticised after it emerged that Barclays and several other leading banks manipulated it…The terms of reference for the Wheatley review include considering whether the rate should be set based on transactions made by traders, rather than the estimate of the rate at which their banks are borrowing at any given time.” Kiran Stacey and Caroline Binham in The Financial Times. Behind paywall.

C. Flower
02-08-2012, 07:39 AM
GEITHNER FACES LIBOR INTERROGATION. Treasury Secretary Timothy Geithner has emerged at the center of congressional inquiry into whether the Federal Reserve Bank of New York appropriately handled its detection that banks were rigging Libor, a benchmark interest rate, when he was running the agency in 2007. He faces a hostile Congress at back-to-back hearings before the House Financial Services and Senate Banking committees on Wednesday and Thursday respectively, which could be personally damaging and have ricocheting effects on the Obama administration. Republicans see a chance to blame a key Obama administration official for failing to hold the financial industry accountable while scoring populist points for being seen as going after the big banks. Read more

http://influencealley.nationaljournal.com/2012/07/look-for-geithner-to-take-a-be.php


Nice user-friendly reporting here on why the Libor interest rates fixing matters - and that many trillions are involved.

http://finance.yahoo.com/blogs/daily-ticker/tim-geithner-aided-abetted-libor-crimes-jim-rickards-131709068.html

rebellin
02-08-2012, 12:45 PM
Geithner Helped Write the Rules for LIBOR

E-mails released by the Bank of England confirm that the Bank and the New York Fed—then headed by Tim Geithner—were very much involved in the cosmetic revision of the LIBOR rules enacted by the British Bankers Association (BBA) in December 2008. So much so, in fact, that they ordered that their fingerprints be erased before publication!

Referring to the BBA’s proposal on July 2, 2008, Bank of England Governor Mervyn King states: “I am broadly content with the approach described here.” He asked to be kept informed of future discussion on the subject. This statement was handwritten on a copy of the BBA proposal dated June 26, 2008.

A message on June 4, 2008, from Michael Cross, private secretary to Mervyn King, states: “I spoke to Bill Dudley of the Fed this afternoon. They are broadly content with the draft in that it addresses the specific points made in President Geithner’s memo.” In the same memo, Cross notes that “we might want to have direct and indirect references to the Bank (and the Fed) removed” from the BBA proposal. In an e-mail later that day, Cross says that King “agrees the BoE references should be removed, and replaced with ‘all interested parties.’” In an e-mail two days later to the BBA, Cross states: “Thank you also for removing the references to the Bank of England,” and suggests two minor changes to the wording of the proposal to further distance the central banks.

These e-mails clearly show the collusion between the Bank of England and Tim Geithner’s New York Fed, on the LIBOR scam. The language is politically correct, but their actions give them away. The deed’s the thing that catches this King, and Geithner as well.

Elements of this story were reported by the Independent July 21 (“Bank of England and U.S. regulators approved inadequate Libor rules”) and the Guardian (“Libor-fixing problems known at height of financial crisis”).

http://laroucheirishbrigade.wordpress.com/2012/07/23/geithner-helped-write-the-rules-for-libor/

DCon
02-08-2012, 09:40 PM
Banks are being helpful in the hope they will be punished less


Several banks under investigation for suspected rigging of euro interest rates are cooperating with EU antitrust regulators in the hope of lower fines, two people familiar with the matter said on Monday, a move which puts the lenders at a higher risk of lawsuits.

The decision by the banks to disclose more about their knowledge of possible manipulation of the Euro Interbank Offered Rate (Euribor) is effectively an admission of wrongdoing and illustrates growing nervousness that they face a heavy penalty.

http://www.reuters.com/article/2012/07/30/eu-euribor-idUSL6E8IU92P20120730

Count Bobulescu
03-08-2012, 09:13 PM
Bye bye Libor, hello Blibor.

-
Daniel L. Doctoroff, CEO and president of Bloomberg LP, has an opinion piece in today's Wall Street Journal, "A Market Alternative to Libor: How the private sector can build a more accurate, transparent and impartial interest-rate benchmark ": "We know the preferred attributes: accuracy, transparency, impartiality and data-based objectivity. The questions are how these goals can be realized: What would the inputs be, and which institutions would be surveyed? Answering those questions will take technical and logistical expertise, as well as a significant investment by the manager of the new index. Bloomberg is researching various solutions to meet this market challenge. The company's prescription-let's call it 'Blibor,' the Bloomberg interbank offered rate-isn't revolutionary. It simply applies the principles of data-based analysis and transparency. ...

"[The] proposed Blibor will achieve accuracy and independence without recourse to potentially stultifying government regulations. Libor is a creature of the private sector, and we feel it is incumbent on the private sector to provide its alternative. That is why Bloomberg is offering to carry out this work on a pro bono basis. We are willing to work with the interested parties-the British Bankers' Association, the Bank of England and others-to implement a method of determining interbank lending rates in which market participants can have faith, and which is based on realities more than assumptions."

DCon
07-08-2012, 03:17 PM
Another UK bank caught in a scandal (non LIBOR related)


The market value of Standard Chartered Plc tumbled as much as $17 billion on Tuesday after New York's bank regulator threatened to tear up its state banking license for allegedly hiding $250 billion in transactions tied to Iran.

The New York State Department of Financial Services (DFS) slammed the London-based but Asia-focused bank as a "rogue institution" that "schemed" with the Iranian government, which is subject to U.S. sanctions over its nuclear program, and hid 60,000 secret transactions to generate hundreds of millions of dollars in fees over nearly 10 years.


In October 2006, the top official for business in the Americas, whom the regulator did not name, warned in a "panicked message" that the Iranian dealings could cause "catastrophic reputational damage" and "serious criminal liability".

A group executive director in London shot back, according to a New York branch officer: "You f---ing Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians."

The reply showed "obvious contempt for U.S. banking regulations", the regulator said.


http://www.reuters.com/article/2012/08/07/us-standardchartered-iran-idUSBRE8750VM20120807

MPB
07-08-2012, 04:10 PM
Another UK bank caught in a scandal (non LIBOR related)






http://www.reuters.com/article/2012/08/07/us-standardchartered-iran-idUSBRE8750VM20120807

The Banker in London had a point though.

riposte
07-08-2012, 06:17 PM
The New State Department of Financial Services say that Standard Chartered is "a rogue institution motivated by greed."

Well it is a bank after all.

DCon
07-08-2012, 07:58 PM
The Banker in London had a point though.

he does. But if you want to play ball in their court you have to follow their rules

Especially if a large % of your business involves their court

DCon
07-08-2012, 11:25 PM
Bankers run crying to the government



Behind the scenes, StanChart’s top executives were busy lobbying the UK government in an effort to counter what is increasingly looking to Britain’s bankers like an assault on the City of London by US authorities.

“This is an attack,” said one senior City figure. “If we don’t stand up to it, it could be catastrophic for London’s financial standing. There has to be some stage where Number 10 or the Treasury says something in defence of the banks.” A second said: “Political intervention may be needed over this.”

A selection of British bankers, politicians and regulators on Tuesday accused Benjamin Lawsky, superintendent of New York state’s DFS, of “freelancing” – going it alone in escalating an investigation into StanChart that had also involved several other agencies.

http://www.ft.com/intl/cms/s/0/888bd13c-e0ba-11e1-b465-00144feab49a.html#axzz22uCrxg3l

MPB
08-08-2012, 12:31 AM
he does. But if you want to play ball in their court you have to follow their rules

Especially if a large % of your business involves their court

Banking is a global business. Deregulated by the Yanks under the control of that brilliant mind Alan Greenspan. That is how the Yanks wanted it. If global Banks want to do business with Iran, a sovereign state, why should the Yanks complain?

The Yanks don,t want anybody to deal with Iran, including Banks, yet they think that forcing a transaction tax on Banks is unworkable because of the global workings of the Banks.

The yanks are gas, they think socialism is a sin, until Bankers require it and they think the free market is a great idea once they can manipulate it.

Their demise is imminent and anybody that thinks the lazy can all of a sudden start to be productive, think again.

The Yanks are fat, lazy and about to suffer the biggest stock market crash since 1929, destroying pensions and other spoof related wealth.

The Banks will eventually crash and all wealth held in Banks will be liquidated.

The rich will lose, the poor will not, but only the intelligent will gain. Rich or Poor.

Dr. FIVE
10-08-2012, 06:54 PM
Good post on the slog

http://hat4uk.wordpress.com/2012/08/08/revealed-why-the-standard-chartered-scandal-is-different/

C. Flower
10-08-2012, 09:55 PM
Good post on the slog

http://hat4uk.wordpress.com/2012/08/08/revealed-why-the-standard-chartered-scandal-is-different/


It is. I wondered what was going on there.

C. Flower
18-08-2012, 07:56 AM
Good post on the slog

http://hat4uk.wordpress.com/2012/08/08/revealed-why-the-standard-chartered-scandal-is-different/

I think the onslaught on Standard Chartered is partly straight rivalry and powerplay between the US and Britain as global finance centres ( all the more intense because of the worsening debt crisis) but also a ratcheting up by the US of sentiment against Iran and warning shot to observe sanctions.

I think I heard that SC had been fined 350 million. All over rather quickly?

Dr. FIVE
11-12-2012, 11:55 AM
Three arrests

http://www.guardian.co.uk/business/2012/dec/11/libor-investigation-three-arrested?CMP=twt_fd

DCon
13-12-2012, 02:41 PM
We'll be talking about serious money soon


zerohedge ‏@zerohedge

UBS LIBOR FINE COULD TOP $1B, FINANCIAL TIMES SAYS

DCon
16-01-2013, 08:26 AM
UK taxpayers on the hook

http://frontpagestoday.co.uk/frontpages/The_Independent_newspaper_front_page.jpg

morticia
16-01-2013, 09:57 AM
Apparently according to this morning's news, Lloyds and RBS may need a LOT more capital. At the mo, they're saying the banks can "sell assets" and/or shrink balance sheets to cope without more tax payer support. Yeh, whatever, I'd believe that, millions wouldn't 😉

DCon
06-02-2013, 12:33 PM
RBS getting fined for LIBOR manipulation. http://www.zerohedge.com/news/2013-02-06/rbs-busted-libor-manipulation-its-just-amazing-how-libor-fixing-can-make-you-much-mo

Some choice quotes


its just amazing how libor fixing can make you that much money


its a cartel now in london[.] they smack all the 1yr irs ..and fix it very high or low


Yen Trader 1: can we lower our fixings today please [Primary Submitter]

Primary Submitter: make your mind up[,] haha , yes no probs

Yen Trader 1: im like a whores drawers

Count Bobulescu
30-04-2013, 09:45 PM
Haven't read it all yet.
Need a longread to start the week? How about Matt Taibbi’s new piece on LIBOR: “Everything Is Rigged,” in Rolling Stone (http://link.email.washingtonpost.com/r/X109GB/LQDFLK/7MEUSH/GWD1HI/6VBO19/HK/h) magazine.

ang
13-01-2014, 08:32 PM
US charges three ex-Rabobank traders over Libor -


High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email [email protected] to buy additional rights. http://www.ft.com/cms/s/0/8d1e0978-7c94-11e3-b514-00144feabdc0.html#ixzz2qJgUXmvU

Three former Rabobank bankers were charged by US authorities with allegedly manipulating Libor and other key benchmark interest rates as the criminal investigation widened to include a second wave of individuals.
The US Department of Justice announced criminal conspiracy and fraud charges against Paul Robson, a former money-manager and UK citizen who left the Rabobank in 2008, Paul Thompson of Australia, and Tetsuya Motomura of Japan. They are accused of conspiring to manipulate the yen Libor rate.


http://www.ft.com/intl/cms/s/0/8d1e0978-7c94-11e3-b514-00144feabdc0.html#axzz2qJg11OOU