Barclays LIBOR Scandel

#1
rjd970

rjd970

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#1
Looks like this could get big.

The LIBOR scandal: The rotten heart of finance | The Economist

Barclays has tried its best to present these incidents as the actions of a few rogue traders. Yet the brazenness with which employees on various Barclays trading floors colluded, both with one another and with traders from other banks, suggests that this sort of behaviour was, if not widespread, at least widely tolerated. Traders happily put in writing requests that were either illegal or, at the very least, morally questionable. In one instance a trader would regularly shout out to colleagues that he was trying to manipulate the rate to a particular level, to check whether they had any conflicting requests
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Over the past week damning evidence has emerged, in documents detailing a settlement between Barclays and regulators in America and Britain, that employees at the bank and at several other unnamed banks tried to rig the number time and again over a period of at least five years. And worse is likely to emerge. Investigations by regulators in several countries, including Canada, America, Japan, the EU, Switzerland and Britain, are looking into allegations that LIBOR and similar rates were rigged by large numbers of banks. Corporations and lawyers, too, are examining whether they can sue Barclays or other banks for harm they have suffered. That could cost the banking industry tens of billions of dollars.
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#2
#2
Seems there's no where to turn for integrity - I'm seriously considering being a hermit.
 
#4
#4
volinbham said:
Seems there's no where to turn for integrity - I'm seriously considering being a hermit.
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You mean you aren't? After all, just what is the difference between a business professor in Alabama and a hermit?
 
#6
#6
Many Wall Street executives says wrongdoing is necessary: survey | Reuters

In a survey of 500 senior executives in the United States and the UK, 26 percent of respondents said they had observed or had firsthand knowledge of wrongdoing in the workplace, while 24 percent said they believed financial services professionals may need to engage in unethical or illegal conduct to be successful.

Sixteen percent of respondents said they would commit insider trading if they could get away with it, according to Labaton Sucharow. And 30 percent said their compensation plans created pressure to compromise ethical standards or violate the law
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#7
#7
I get the whole "work hard and you will be successful, be lazy and you won't" mantra. But it seems like at the top it is a fixed game, and cheating is rewarded more than hard work.
 
#8
#8
rjd970 said:
I get the whole "work hard and you will be successful, be lazy and you won't" mantra. But it seems like at the top it is a fixed game, and cheating is rewarded more than hard work.
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You mean to tell me that a deregulated market is not the zenith of free civilization! I never would have guessed!
 
#9
#9
When things like this happen, finance execs and their see no evil supporters say "they shouldn't have done that" but then they fight regulation and say that investors should just take the hit as risk.

This constant refusal to admit their brethren are greedy sob's is mind boggling.
 
#12
#12
#16
#16
wait a minute, the NY Fed - chaired by Tim Geithner - was warned by Barclays in 2007? Thankfully we have regulators like the Fed looking out for, and protecting, our interests.

WashingtonPost
 
#18
#18
why would Barclays notify the Fed "at least 12 times" if the Fed has/had no control over "what happens in London?"

why would Barclays warn regulators that Libor was "artificially low?"
 
#20
#20
dreVol said:
why would Barclays notify the Fed "at least 12 times" if the Fed has/had no control over "what happens in London?"

why would Barclays warn regulators that Libor was "artificially low?"
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Since large international banks are involved, I'm sure the Fed monitors developments, but I assume that the regulators on the ground are U.K.
 
#25
#25
NYT: U.S. Builds Criminal Cases in Rate-Fixing

The department's criminal division is building cases against several financial institutions and their employees, including traders at Barclays, the British bank, according to government officials close to the case who spoke on the condition of anonymity because the investigation is continuing. The authorities expect to file charges against at least one bank later this year, one of the officials said.

The prospect of criminal cases is expected to rattle the banking world and provide a new impetus for financial institutions to settle with the authorities. The Justice Department investigation comes on top of private investor lawsuits and a sweeping regulatory inquiry led by the Commodity Futures Trading Commission. Collectively, the civil and criminal actions could cost the banking industry tens of billions of dollars.
. . .
The multiyear investigation has ensnared more than 10 big banks in the United States and abroad. With the prospects of criminal action, several firms, including at least two European institutions, are scrambling to arrange deals, according to lawyers close to the case. In part, they are trying to avoid the public outcry that stemmed from the Barclays case, which prompted the resignation of top executives.
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