LIBOR

[FluffyMcDeath]

I know I was talking about the LIBOR fixing under another thread - the one about how Municipalities were being ripped off by the banks - but I decided to open up another thread under a better name.

Anyway, I am happy to see that the scandal is spreading and hopefully this time around some people will go to jail - or at least not get their bonuses!

The link below has Eliot Spitzer talking to Matt Taibbi about LIBOR. It's video from current.com so I don't know whether it is region restricted.

http://current.com/shows/viewpoint/...he-cartel-style-corruption-behind-libor-scam/

It's classic conspiracy and corruption.

 

[FluffyMcDeath]

Found a youtube copy of that:

 

[FluffyMcDeath]

The Germans will be investigating their banks too.

Investigators in the United States, Europe and Japan are examining more than a dozen big banks over suspected rigging of the London Interbank Offered Rate (Libor).

And in the UK the Serious Fraud Office will be taking a look. That's the first time I can recall of the F word being connected in an official fashion to the shenanigans that have been going on in the financial world.

 

[cecilia]

so murdock won't be alone?

 

[FluffyMcDeath]

JP Morgan getting subpoenas from around the world!

 

[Robert]

Found a youtube copy of that:

blocked here.

 

[Robert]

The link below has Eliot Spitzer talking to Matt Taibbi about LIBOR. It's video from current.com so I don't know whether it is region restricted.

http://current.com/shows/viewpoint/...he-cartel-style-corruption-behind-libor-scam/

Curiously, this isn't restricted.

 

[FluffyMcDeath]

Some big bad banks got some teensy little fines and then along comes son of LIBOR.

 

[FluffyMcDeath]

Executives knew.

 

[FluffyMcDeath]

Could still blow up!

 

[Robert]

Three bankers found guilty:

Three former Barclays traders have been found guilty of conspiring to fraudulently manipulate global benchmark interest rates in a stark warning to junior bankers and a major victory for the UK’s Serious Fraud Office (SFO).

India-born Jay Merchant, 45, the most senior of the men on trial, was convicted unanimously while British former Libor submitter Jonathan Mathew, 35, and former trader Alex Pabon, a 38-year-old American, were found guilty by a majority verdict after a 10-week trial at Southwark crown court in London.

A second Libor submitter, Peter Johnson, 61, had pleaded guilty. The men are expected to be sentenced on Thursday.

Reporting restrictions on the verdicts were lifted on Monday after the jury failed to reach a verdict on two other defendants.

 

[Robert]

HSBC, JP Morgan and Crédit Agricole fined €485m by EU

A five-year investigation by competition authorities in Brussels into rigging of interest rates drew to a close on Wednesday when three major banks – including HSBC – were fined €485m (£412m) for colluding to manipulate a crucial benchmark rate.

The three banks, which also included JP Morgan Chase and Crédit Agricole, did not agree to an earlier settlement involving a seven-bank cartel over the setting of the interest rate known as Euribor. All three deny wrongdoing.

JP Morgan was fined €337m, HSBC €33m and Crédit Agricole €114m. The levels were based on the time they participated in the cartel and the value of products involved.

 

[JoBBo]

Once again, nobody is being criminally prosecuted. Also, the fine won't actually be paid by any of the individuals who committed these crimes (and likely were rewarded with bonus payments for their behaviour). Instead, the fine will be paid by the people and organizations who were duped into buying shares of the involved banks...

As long as the wrong parties are being held responsible, there is no incentive for bank employees to behave any differently.