Tag Archives | barclays

Banks brace for €1.7bn EU fines over Libor

a_drop_in_the_bucket

I don’t know about you, but this seems like a public ceremonial slap on the wrist for some people who should be thrown in prison.

via The Telegraph

Some of the world’s biggest banks are to be “fined a record €1.7bn” (£1.4bn) by European authorities to settle allegations of rigging benchmark borrowing rates used to set the price of trillions of dollars of financial products, according to reports.

The European Union competition authorities could announce the penalties as early as Wednesday, with up to 10 banks, including Royal Bank of Scotland, Deutsche Bank and Societe Generale, expected to settle cases, according to the Financial Times.

EU officials have been investigating claims that several large banks attempted to manipulate yen and euro-denominated Libor rates as part of an international probe.

Deutsche Bank and RBS are said to be facing fines for manipulating both rates, while other banks will settle claims related to just one of the rates.

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LIBOR Pains: Why Do These Stories Always Seem to Break in Britain?

Probably not because their regulators are any smarter or scrupulous than those in the U.S. – more likely because they’re relatively powerless to conceal them. From Caroline Salas Gage and Joshua Zumbrun at Bloomberg:

The Federal Reserve Bank of New York was aware of potential issues involving Barclays Plc (BARC) and the London interbank offered rate after the financial crisis began in 2007, according to a statement from the district bank.

“In the context of our market monitoring following the onset of the financial crisis in late 2007, involving thousands of calls and e-mails with market participants over a period of many months, we received occasional anecdotal reports from Barclays of problems with Libor,” New York Fed spokeswoman Andrea Priest said in an e-mailed statement.

“In the spring of 2008, following the failure of Bear Stearns and shortly before the first media report on the subject, we made further inquiry of Barclays as to how Libor submissions were being conducted,” the statement said.

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Matt Taibbi Explains The LIBOR Bankster Scam

Disgraced former New York Governor Eliot Spitzer just might have a future as a talk show host if he keeps booking amazing guests like Matt Taibbi for Current TV:

…Barclays CEO Bob Diamond recently resigned after the bank was fined $453 million for its part in the scandal, which involved manipulating the London Interbank Offered Rate (Libor), a key global benchmark for interest rates, by essentially “faking their credit scores,” according to Taibbi. And as Taibbi explains, Barclays couldn’t have acted alone.

“It can’t just be Barclays and the Royal Bank of Scotland. In fact, it can’t even be four banks or even five banks,” he says. “Really, in the end it’s probably going to come out that it’s going to be all of them … involved in this. And that’s what’s critical for people to understand: that this is a cartel-style corruption.”…

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Barclays CEO Resigns Under a Cloud of Criminal Allegations

World Economic Forum (CC)

Uh-oh.  In case you haven’t been paying attention, there’s a rolling sh*tstorm breaking out across the pond related to the admitted gaming of LIBOR by big investment banks like Barclays.  You know LIBOR, right?  The rate referenced in practically every major financial contract since 1985.

I wonder how much of that $450 million will go to folks who got the short end of the stick on contracts paid out under a fradulently low LIBOR rate.

From Mark Scott at the NY Times:

LONDON – Barclays is quickly trying to stem the fallout from a rate-manipulation scandal, as its chief executive Robert E. Diamond Jr. [at right] abruptly resigned on Tuesday.

Less than a week ago, the big bank agreed to pay $450 million to settle accusations that it had tried to influence key interest rates for its own benefit, sparking a political firestorm in Britain.

Now, the scandal has claimed three casualties, including Mr.

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