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Posts tagged ‘London Interbank Offered Rate’

Royal Bank of Scotland fined US$612m for rate rigging

Royal Bank of Scotland is to pay US$612 million in fines to regulators in the United States and Britain for rigging interbank lending rates, the kind of market manipulation the Hong Kong Monetary Authority sought to stave off yesterday by unveiling new measures in setting rates in the city.

More than a dozen traders at RBS offices in London, Singapore and Tokyo manipulated the London interbank offered rate, which is used to price trillions of dollars worth of loans, from at least 2006 until 2010.

Britain’s financial regulator, the Financial Services Authority (FSA), said at least 21 people from RBS were involved in rate rigging.

The lender will pay US$325 million to the US Commodity Futures Trading Commission, US$150 million to the US Department of Justice and US$137 million to the FSA, the commission said.

RBS Securities Japan has agreed to enter a plea of guilty to one count of wire fraud relating to yen Libor, the British bank said…………………

full article at source: http://www.scmp.com/business/banking-finance/article/1144342/uks-rbs-braced-libor-rate-rigging-punishment

The Banking Elite are Not Only Stealing Our Wealth, But They Are Also Stealing Our Minds

by smartknowledgeu

In the past several years, people worldwide are slowly beginning to shed the web
of deceit woven by the banking elite and learning that many topics that were
mocked by the mainstream media as conspiracy theories of the tin-foil hat
community have now been proven to be true beyond a shadow of a doubt. First
there was the myth that bankers were upstanding members of the community that
contributed positively to society. Then in 2009, one of their own, Paul Volcker,
in a rare momentary lapse of sanity, stated “I wish someone would give me
one shred of neutral evidence that financial innovation has led to economic
growth — one shred of evidence.”
He then followed up this declaration by
stating that the most positive contribution bankers had produced for society in
the past 20 years was the ATM machine. Of course since that time, we have
learned that Wachovia Bank laundered $378,400,000,000 of drug cartel money,
HSBC Bank failed to monitor £38,000,000,000,000 of money with
potentially dirty criminal ties
, United Bank of Switzerland illegally manipulated LIBOR interest
rates on a regular basis for purposes of profiteering
, and though they have
yet to be prosecuted, JP Morgan bank, Goldman Sachs bank, & ScotiaMocatta
bank are all regularly accused of manipulating gold and silver prices on nearly
a daily basis by many veteran gold and silver traders.

full article at source: http://www.zerohedge.com/contributed/2013-01-03/banking-elite-are-not-only-stealing-our-wealth-they-are-also-stealing-our-min

RATES SCAM: Euribor rates ‘rigged throughout 2009-10 crisis’.

English: Euribor: 1999-2011. green: 1 week, bl...

English: Euribor: 1999-2011. green: 1 week, blue: 3 months, red: 1 year Deutsch: Euribor 1999-2011. grün: 1 Woche, blau: 3 Monate, rot: 1 Jahr (Photo credit: Wikipedia)

As the news began to permeate deep into the MSM – even as far as the Dacre Wail – last night that the Libor rate has been fiddled for perhaps thirty years or more, an interesting (if brain-challenging) piece by John Morrison at Asymptotix argues strongly that euribor was completely rigged two years ago as interbank illiquidity solidified completely during 2009-10 in the eurozone. Thus we had:

‘….the context to incentivise Fixed Income trading desks (most all of which are in London) making losses in the context of total Armageddon, to start to behave in a criminally disruptive manner; the environment was ‘all bets are off’; ‘this is the end of the world as we know it’… the opportunity to rig LIBOR or EURIBOR occurs in a context of crisis where Central Authorities have lost control of the capital market transmission mechanism…’

This is an intriguing viewpoint, and one which I think has some validity – viz, when the authorities are ignorant and incompetent (and we are talking Brussels here) to keep things going it becomes a case of individual players following the sauve qui peut approach. This is backed up by Van Rompuy’s immortal line at the start of Ecofin, June 17th 2010:

full article at source: http://hat4uk.wordpress.com/2012/07/11/rates-scam-euribor-rates-rigged-throughout-2009-10-crisis/

Market Manipulation

By: Jim_Willie_CB

Few observers  make the connection, but the current LIBOR scandal is a middle inning of two  important events. The first is the demise of the Western banker leadership  crew. The executives from the most powerful banks will be last to be deposed,  all sharing an ethnic strain. The second is the open fracture of the Western  financial system. Over the past few years, to be sure a great many people have  grown tired of Jackass descriptions of corruption within the banking sector and  financial system in general. Well, hear this: TOLD YA SO! The London Interbank  Offered Rate scandal will erupt into an uncontrollable firestorm, hitting one  chamber and then the next, with rapid contagion.

full article at source: http://www.marketoracle.co.uk/Article35468.html


Michael Spencer

Could Michael Spencer NOT have been aware of LIBOR manipulation?

Talking to a close friend last night, we laid a bet on how long it would take to wind up the Banker pr machine in order to start salting the media ground with ‘don’t bash bankers’  bollocks. I said (from yesterday) 72 hours. He thought five days. Already this morning, he’s lost. I’ve counted five already, and as you might expect, the Torygraph has two of them. The first of these by Robert Watts is standard issue stuff, and not likely to increase the collar-temperature too much. But Iain Martin in his piece sums up the Westminster hypocrisy to a tee. As I blogged last week, when the political dimension of LIBOR starts leaking out, then we really shall see some fun and games

full article at source: http://hat4uk.wordpress.com/author/hat4uk/

Why the global political class lies in fear of the LIBOR scandal?

 By John Ward at the slog reports:

A couple of Torygraph journalists were exchanging tweets this morning about Bob Diamond’s cockup being “only the start” of the LIBOR scandal. It could well be that the time has come for some noisy skeletons to walk out of the Westminster cupboard.

An international investigation into the alleged 2008 Libor manipulation scandal has been necessary pretty much right from the start. Without wishing to seem too obvious here, that’s because what happened was internationally arranged. On April 12th 2011, The Slog reported that Vienna-based asset management concern FTC Capital GmbH – and two funds it operates in Luxembourg and Gibraltar – announced their intention to sue twelve major investment banks. FTC accused the banks of conspiring to artificially depress Libor, and limit trade in Libor-based derivatives from 2006 to 2009. The defendants as listed in the suit were Bank of America Corp, Barclays Plc, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase & Co, Lloyds Banking Group Plc, Norinchukin Bank, Royal Bank of Scotland Group Plc, UBS AG and WestLB AG.

full article at source :http://hat4uk.wordpress.com/2012/06/28/exclusive-why-the-global-political-class-lies-in-fear-of-the-libor-scandal/

Libor stands for the London Inter-Bank Offered Rate and is the average cost of   borrowing for banks, calculated daily. That average is taken as official   Libor, which is used to price trillions of pounds of loans and financial   products across the world. The rate is worked out by asking banks to submit   their borrowing costs, discarding the top four and bottom four rates, and   taking the average of the rest. There are, in fact, several Libor rates   measuring the cost of borrowing for different lengths of time, of which   three-month Libor is seen as the benchmark. Just to complicate matters,   Libor is also calculated for different currencies of which Euribor, in   euros, is one.

Don’t I know Libor from somewhere?

You might remember the term from the Northern Rock crisis. Having effectively   matched the Bank of England’s base rate for years, Libor started creeping up   after the credit crunch struck. As a visible daily metric, it became the   instrument by which financial stress was measured – bringing the arcane   technical term into households a bit like “quantitative easing” today.   Stress could be seen in the cost of Libor over base rate, which peaked in   October 2008 after the collapse of Lehman Brothers at 1.68 percentage   points. In April this year, the spread was back down to just 0.56 points.


So after almost 4 years of Bank clean ups we are still uncovering corruption and fraud coming from the banks .Irish government’s financial dealings through the equally questionable dealings at the Toxic Bank/property front is no better. a nod and a wink    seems to be the way business is done but for whose benefit? The Irish taxpayers are been forced to pay 1.5 billion Euros of the gambling debts, of faceless unsecured bondholders. Why??  With what we now know is it possible that there is a case for the Irish government to sue Barclays??

With the clueless and gutless Irish minister of Finance we are not likely to see any such action we will not even see an investigation into the possible effects of this uncovered fraud in the Libor Markets might have had on Irish mortgages and bank interest charges. As far as I can see we are still no better off the banks are still running the show!  Our own Bank fraud (Anglo Irish Bank) (and the attempt by Irish Life and Permanent to help doctor the books with a 7 billion dig out) investigation continues and to date not one person has been brought to justice! One law for the Banks and one law for the rest of us!

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