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Big banks subpoenaed over rates rigging

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  • Big banks subpoenaed over rates rigging

    Wasn't too sure which Forum to stick this in..... it could quite easily have gone under the UK one.

    Stand back people things are about to get nasty. These Big Banks are going to protect their incomes/reputations like Mother Bears and if they can point the finger at someone else, they will.

    Aug 16, 2012

    Barclays Bank was fined $US543m for its role in rigging the benchmark Libor rate.

    The attorneys general of New York and Connecticut have issued subpoenas to seven banks over the possible manipulation of a global interest rate, a person with knowledge of the matter told The Associated Press on Wednesday.

    Subpoenas were issued, mostly last month and this month, to Barclays, Citigroup, Deutsche Bank, JPMorgan Chase, HSBC, Royal Bank of Scotland and UBS, the person said.

    The person spoke on condition of anonymity because the person was not authorised to discuss the matter publicly.

    American and British regulators have already fined Barclays, based in Britain, $US453 million for submitting false information between 2005 and 2009 to keep the interest rate, known as LIBOR, low.

    LIBOR, short for London interbank offered rate, is used to set the interest rates on trillions of dollars in contracts around the world, including mortgages and credit cards.

    It is a self-policing system and relies on information that global banks submit to a British banking authority.

    The New York and Connecticut attorneys general issued the subpoenas because LIBOR is also used to determine the rates for the bonds issued by city and county governments, the person with knowledge of the matter told AP.

    Barclays has admitted that it submitted figures that were lower than accurate for its interbank borrowing, including during the financial crisis in the fall of 2008. Those reports made it appear that Barclays was healthier than it was.

    UBS filed a report with regulators on July 31 saying that agencies including state attorneys general were examining whether it and other banks had tried to manipulate the rate. A spokeswoman for Barclays declined further comment.

    Citigroup and JPMorgan Chase declined comment.
    Most telling is that Citigroup and JPMorgan Chase declined to comment. What are they hiding???
    Patience is a virtue.

  • #2
    They will simply pay fines for various amounts from $300m - $800m.
    If Romney is elected he will repeal Dodd - Frank.
    Back to business; except next time the crash will be so much bigger with nothing left in the piggy bank to bail anyone out.

    Comment


    • #3
      standard and chartered also paying a HUGE fine to avoid explaining why they became tehran's banker during the sanctions

      but be careful in your glee in the GFC causing bankers getting their day in court

      greedy property investors with hugely leveraged portfolios are next on the list of public dislike
      have you defeated them?
      your demons

      Comment


      • #4
        Originally posted by eri View Post
        standard and chartered also paying a HUGE fine
        Less than one months profit....

        Comment


        • #5
          Libor may adopt Kiwi formula

          The masters of the universe are firmly back in the dock as a rate-rigging scandal threatens to spark a frenzy of litigation - Britain's Barclays Bank has already paid more than half a billion dollars in fines - and undermine confidence in a foundation stone of the financial world.

          And as the global fallout spreads, the European Central Bank is looking to New Zealand in a search for a cure.

          Ask anyone in the finance industry and they will tell you that Libor - the London interbank offered rate - is inextricably woven into the fabric of the world's capital markets.

          From major international financing deals through to common-or-garden mortgages, Libor has been a key plank in the relationship between borrowers and lenders the world over.

          In London's case, this vital mechanism for the interest rate markets has operated largely behind the scenes.

          Until now.

          The rate sets the scene for banks, international financiers, mortgage lenders, credit card companies, or anyone wanting to raise funds through the interest rate markets.
          http://www.nzherald.co.nz/business/n...ectid=10827707
          Patience is a virtue.

          Comment


          • #6
            Originally posted by eri View Post
            standard and chartered also paying a HUGE fine to avoid explaining why they became tehran's banker during the sanctions

            but be careful in your glee in the GFC causing bankers getting their day in court

            greedy property investors with hugely leveraged portfolios are next on the list of public dislike
            That fine was even less their one's month's profit.

            Comment


            • #7
              Another article mentioning LIBOR -

              http://www.dailymail.co.uk/money/new...e-setting.html

              although, it is from the Daily Mail, so treat the article with the contempt it deserves.

              If this case goes to court and they win, imagine the cases that will follow!!
              Patience is a virtue.

              Comment


              • #8
                Read on The Guardian the other day that they've been ripping customers off over gas prices too: http://www.guardian.co.uk/business/2...ks?INTCMP=SRCH

                Not the banks, the utilities. Doing all sorts of tricks to manipulate the wholesale price of gas.

                And ripping off every British household in the process. For years.

                It seems the average punter can't trust anyone these days.
                Squadly dinky do!

                Comment


                • #9
                  LIBOR arrests, charges heating up fast.

                  http://www.bbc.co.uk/news/business-20678302

                  http://www.bbc.co.uk/news/business-20746820

                  http://www.bbc.co.uk/news/business-18671255
                  Last edited by essence; 18-12-2012, 12:45 AM.
                  Patience is a virtue.

                  Comment


                  • #10
                    pity

                    but individual arrests are what's needed to make white collar criminals take notice

                    just fining the company isn't enough

                    as no one has to take any responsibility

                    and they just pay the shareholders less

                    not cut their bonuses
                    have you defeated them?
                    your demons

                    Comment


                    • #11
                      Originally posted by eri View Post
                      but individual arrests are what's needed to make white collar criminals take notice
                      Back in 2008

                      Jail for former Qantas boss in cargo price-fixing cartel

                      QANTAS'S former head of freight in the US, Bruce McCaffrey, has pleaded guilty and agreed to serve an eight-month jail sentence in the US for involvement in the illegal price-fixing of cargo shipments.

                      After striking a plea bargain with the US Department of Justice on Thursday, McCaffrey is set to become the first airline executive anywhere in the world to be imprisoned for the price-fixing cartel by more than 30 airlines between 2000 to 2006.
                      ........
                      The law firm leading a $200 million class action against Qantas, Air New Zealand, Singapore Airlines, Japan Airlines, Lufthansa, Cathay Pacific and British Airways over the alleged fixing of freight rates described McCaffrey's plea deal as "a major development in this case".
                      www.smh.com.au/business/jail-for-former-qantas-boss-in-cargo-pricefixing-cartel-20080509-2cp7.html

                      Comment


                      • #12
                        Have you guys seen the HSBC settlement? They pay a small fine for money laundering billions of dollars for Mexican drug cartels, laundering money for Iran, helping Al Quaeda etc.

                        And no criminal charges laid...

                        http://www.rollingstone.com/politics...-joke-20121213

                        In the states you can spend a night in jail if you happen to fall asleep on 2 subway seats, or get caught with a dak cigarette. But commit the most serious crimes a bank can, and what? You pay a very small fine...

                        It's really sending a very bad message.
                        Squadly dinky do!

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