Moderator: Peak Moderation
But the first time Uncle Merv became aware of the Libor scandal was about three weeks ago. Yeh, right.The Guardian - 20/07/12
Libor-fixing problems known at height of financial crisis
British Bankers' Association (BBA) issued a warning to banks in April 2008 to 'submit honest rates' to its Libor setting.
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The Independent - 23/07/12
Seven more banks review rate swaps
A further seven banks have agreed to review the sale of complex financial products to small businesses and compensate customers where evidence of mis-selling is uncovered, the City watchdog said today.
Allied Irish Bank, Bank of Ireland, the Clydesdale and Yorkshire banks, the Co-operative Bank, Northern Bank and Santander UK will review the sale of so-called interest rate swaps to small and medium enterprises (SMEs), the Financial Services Authority (FSA) said.
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The Independent - 24/07/12
Bank regulation is flawed, says FSA chief Lord Adair Turner
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BBC News - 26/07/12
The British Bankers Association was given weekly warnings in 2008 that the process of setting the Libor interest rates was being distorted.
A former member of the Libor compilation team at Thomson Reuters says it regularly warned senior BBA staff about the problem.
Its reports regularly highlighted the implausible rate submissions of several banks involved in the Libor process.
The BBA denied these had amounted to warnings of wrong-doing.
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Profligate to the very end.The Independent - 26/07/12
Disgraced Barclays chief banks £9m payoff
Barclays was engulfed in scandal again last night after reports emerged of an £8.75m payoff to the most senior executive to authorise the false submission of Libor interest rates. Jerry del Missier resigned last month but is said to have arranged the payoff in the days before his departure. The move stands in stark contrast to a decision by his boss, Bob Diamond, to give up deferred bonus payments worth up to £20m.
Last night a political storm was brewing over the payment, which Barclays repeatedly refused to deny. "We're making no comment," a spokesman said.
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I wonder how long before my ex-MP Ms Angela Knight is back in the House of Commons answering questions?Aurora wrote:BBC News - 26/07/12
The British Bankers Association was given weekly warnings in 2008 that the process of setting the Libor interest rates was being distorted.
A former member of the Libor compilation team at Thomson Reuters says it regularly warned senior BBA staff about the problem.
Its reports regularly highlighted the implausible rate submissions of several banks involved in the Libor process.
The BBA denied these had amounted to warnings of wrong-doing.
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The Guardian - 27/07/12
Barclays finance chief investigated by FSA over fundraising
In wake of Libor scandal, Chris Lucas is under FSA spotlight over £7.3bn funds raised from Middle East investors in 2008.
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Is there no end to their skulduggery?BBC News - 27/07/12
Barclays has revealed that it is under investigation by the financial watchdog over the disclosure of fees payable under unspecified deals made in 2008.
The news came as the bank's adjusted pre-tax profit for the first six months of 2012 rose 13% to £4.2bn.
It also set aside £450m to cover potential compensation to small businesses sold inappropriate financial products, its results statement said.
It comes weeks after Barclays admitted involvement in a rate-rigging scandal.
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No.Aurora wrote:The Guardian - 27/07/12
Barclays finance chief investigated by FSA over fundraising
In wake of Libor scandal, Chris Lucas is under FSA spotlight over £7.3bn funds raised from Middle East investors in 2008.
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That comment looks increasingly ludicrous as a former Morgan Stanley trader claims that LIBOR was being rigged back in 1991 and this practice had probably been going on some time before then. (It may have started with the "Big Bang" of the financial markets that Thatcher introduced in 1986)Aurora wrote:But the first time Uncle Merv became aware of the Libor scandal was about three weeks ago. Yeh, right.The Guardian - 20/07/12
Libor-fixing problems known at height of financial crisis
British Bankers' Association (BBA) issued a warning to banks in April 2008 to 'submit honest rates' to its Libor setting.
Article continues ...
A comment in today’s Financial Times is by a former Morgan Stanley trader, Douglas Keenan, confirms a passing comment in the Economist, that Libor manipulation goes back for more than 15 years. In fact, this piece makes it clear that is the time frame exceeds 20 years. From the Financial Times:
In 1991, I had live trading screens that showed the Libor rates. In September of that year, on the third Wednesday, at 11 o’clock, I watched those screens to see where the futures contract [on three month Libor] should settle. Shortly afterwards, Liffe announced the contract settlement rate. Its rate was different from what had been shown on my screens, by a few hundredths of a per cent.
As a result, I lost money. The amount was insignificant for me, but I believed that I had been defrauded and I complained to Liffe [ London International Financial Futures Exchange, which is where the contract traded]. Liffe explained that the settlement rate was not determined by what rates were actually in the market. Instead, the British Banker’s Association polled banks, asking them what the rates were. The highest and lowest quoted rates were discarded and the rest were averaged, giving the settlement rate. Liffe explained that, in doing this, they were adhering to the terms of the contract.
I talked with some of my more experienced colleagues about this. They told me banks misreported the Libor rates in a way that would generally bring them profits. I had been unaware of that, as I was relatively new to financial trading. My naivety seemed to be humorous to my colleagues.
The Observer - 29/07/12
'Britons evaded £200m in tax' using HSBC-owned Swiss bank
Trade minister who headed banking division is facing further pressure.
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The Independent - 29/07/12
Barclays and most of Wall Street's banks are backing Mitt Romney to be president as he will keep the status quo. But investors are shunning them.
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