Showing posts with label LIBOR. Show all posts
Showing posts with label LIBOR. Show all posts

Wednesday, October 16, 2013

UK court to hear evidence ahead of landmark Libor ruling


http://www.reuters.com/article/2013/10/12/libor-court-idUSL6N0HY3E220131012

UK court to hear evidence ahead of landmark Libor ruling
By Matt Scuffham

LONDON | Sat Oct 12, 2013 7:00pm EDT

Oct 13 (Reuters) - A British court will this week consider whether attempted manipulation of the benchmark interest rate Libor can invalidate loans and other deals or show that banks mis-sold products that were based upon the rate.

The Court of Appeal will on Tuesday begin a 3-day hearing examining two separate cases brought by clients against Barclays and Deutsche Bank. It is expected to hand down a landmark ruling later in the year, according to sources familiar with the cases.

If the decision goes against the banks, it could open the door to many more cases being brought against the industry by companies citing Libor manipulation, opening banks up to compensation claims worth billions of pounds.

The London interbank offered rate (Libor) is used to price over $300 trillion of financial contracts around the world.

"To unwind all Libor-linked derivative contracts would be financial Armageddon," said Abhishek Sachdev, managing director of Vedanta Hedging, which advises companies on interest rate hedging products.

In previous legal rulings judges have stopped short of saying Libor is relevant to all claims against banks but said it could be used in cases where contracts have been linked specifically to the benchmark.

Barclays is being sued for up to 70 million pounds ($112 million) by Guardian Care Homes, a UK residential care home operator, which alleges the bank mis-sold it interest rate hedging products that were based upon Libor.

The case has been delayed until April 2014 so the appeal decision can be heard. It started out as a complaint about the alleged mis-selling of interest rate swaps but a judge ruled last October that it could be amended to include claims of fraudulent misrepresentation connected to Libor manipulation.

Barclays said the case has no merit because Guardian Care Homes had sufficient understanding of the products to make its own judgment over whether to enter into the agreements.

"The addition of a claim based on what happened with Libor does not change the bank's view. This business had a suite of advisors and a lot of financial experience and skill in-house," it said on Friday.

Barclays last year paid a $450 million to settle allegations it manipulated Libor, and UBS and Royal Bank of Scotland have been fined for manipulating Libor. Deutsche is among several other banks under investigation.

Deutsche Bank last year sued Indian property firm Unitech for the repayment of a $150 million loan made in 2007 by a consortium of lenders and for the repayment of $11 million owed for a related interest-rate swap.

But Unitech counter-sued, saying the loan and swap deal were linked to Libor interest rates, which at the time were being manipulated by some banks.

A UK court last month said Unitech must repay the loan, but said the dispute over the related swap should go to trial.

The judge said just because there was evidence the Libor rate had been manipulated did not make a loan void. But he said the terms of the swap agreement and its specific link to a Libor contract were more contentious.

"The defendant's attempts to introduce broad and unsupported allegations about Libor, which have already been rejected once by the High Court, are a bid to delay payment and divert attention from its unpaid debts," Deutsche Bank said on Friday.

Lawyers for Guardian Care Homes and Unitech declined to comment.

Saturday, April 27, 2013

Rolling Stone: Everything Is Rigged:
The Biggest Price-Fixing Scandal Ever
The Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There's no price the big banks can't fix


Illustration by Victor Juhasz

Everything Is Rigged: The Biggest Price-Fixing Scandal Ever
The Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There's no price the big banks can't fix

Illustration by Victor Juhasz
By MATT TAIBBI
April 25, 2013 1:00 PM ET

Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world's largest banks may be fixing the prices of, well, just about everything.

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that's trillion, with a "t") worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it "dwarfs by orders of magnitude any financial scam in the history of markets."

That was bad enough, but now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the world's largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the world's largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps.

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It's about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget.

It should surprise no one that among the players implicated in this scheme to fix the prices of interest-rate swaps are the same megabanks – including Barclays, UBS, Bank of America, JPMorgan Chase and the Royal Bank of Scotland – that serve on the Libor panel that sets global interest rates. In fact, in recent years many of these banks have already paid multimillion-dollar settlements for anti-competitive manipulation of one form or another (in addition to Libor, some were caught up in an anti-competitive scheme, detailed in Rolling Stone last year, to rig municipal-debt service auctions). Though the jumble of financial acronyms sounds like gibberish to the layperson, the fact that there may now be price-fixing scandals involving both Libor and ISDAfix suggests a single, giant mushrooming conspiracy of collusion and price-fixing hovering under the ostensibly competitive veneer of Wall Street culture.

Read more:
http://www.rollingstone.com/politics/news/everything-is-rigged-the-biggest-financial-scandal-yet-20130425#ixzz2Rh8LMon1

Monday, December 17, 2012

Secret Libor Transcripts Expose Trader Rate-Manipulation



http://mobile.bloomberg.com/news/2012-12-13/rigged-libor-with-police-nearby-shows-flaw-of-light-touch.html
Secret Libor Transcripts Expose Trader Rate-Manipulation
By Liam Vaughan and Gavin Finch
December 13, 2012 11:01 AM EST

Every morning, from his desk by the bathroom at the far end of Royal Bank of Scotland Group Plc’s trading floor overlooking London’s Liverpool Street station, Paul White punched a series of numbers into his computer.

White, who joined RBS in 1984, was one of the employees responsible for the firm’s submissions to the London interbank offered rate, or Libor, the global benchmark for more than $300 trillion of contracts, from mortgages and student loans to interest-rate swaps. Behind him sat Neil Danziger, a derivatives trader at the bank since 2002. On the morning of March 27, 2008, Tan Chi Min, Danziger’s boss in Tokyo, told him to make sure the next day’s submission in yen would increase.

“We need to bump it way up high, highest among all if possible,” Tan, known by colleagues as “Jimmy,” wrote in an instant message to Danziger, according to a transcript made public by a Singapore court and reviewed by Bloomberg before being sealed by a judge at RBS’s request.

The trader typically would have swiveled in his chair, tapped White on the shoulder and relayed the request, people who worked on the trading floor said. Instead, as White was away that day, Danziger input the rate himself.

The next morning RBS said it paid 0.97 percent to borrow in yen for three months, up from 0.94 percent the previous day. The Edinburgh-based bank was the only one of 16 surveyed to raise its rate. If it had lowered its submission in line with others, the cost of borrowing in yen would have fallen one-fifth of a basis point, or 0.002 percent, according to data compiled by Bloomberg. Even that small a move could mean a gain of $250,000 on a position of $50 billion.

Events like those that took place on RBS’s trading floor, across the road from Bishopsgate police station and Dirty Dicks, a 267-year-old public house, are at the heart of the biggest and longest-running scandal in banking history.



UBS Said to Face Fines of More Than $1 Billion in Libor Probes

For years, traders at RBS, Barclays Plc (BARC), UBS AG (UBSN), Deutsche Bank AG (DBK), Rabobank Groep and other firms that stood to profit worked with employees responsible for setting the benchmark to rig the price of money, according to documents obtained by Bloomberg and interviews with two dozen current and former traders, lawyers and regulators. Those interviews reveal how the manipulation flourished for years, even after bank supervisors were made aware of the system’s flaws.

The conspiracy wasn’t confined to low-level employees. Senior managers at RBS, Britain’s largest publicly owned lender, knew banks were systematically rigging Libor as early as August 2007, transcripts of phone conversations obtained by Bloomberg show. Some traders colluded with counterparts at other banks to boost profits from interest-rate futures by aligning their submissions. Members of the close-knit group knew each other from working at the same firms or going on trips organized by interdealer brokers such as ICAP Plc (IAP) to Chamonix, a French ski resort, or the Monaco Grand Prix.

Sunday, October 28, 2012

Royal Bank of Canada Supoenaed in LIBOR Probe




http://www.cbc.ca/news/business/story/2012/10/26/rbc-libor-probe.html

Royal Bank subpoenaed in LIBOR probe

The Canadian Press Posted: Oct 26, 2012 10:40 AM ET Last Updated: Oct 26, 2012 1:33 PM ET

There are reports that Royal Bank of Canada has been served with a subpoena from U.S. state officials as part of their probe into the possible manipulation of a key benchmark used to set interest rates.

The Wall Street Journal and other business publication report the subpoenas were issued to nine banks, including RBC, in August and September, according to an unidentified person familiar with the investigation.

That brings to 16 the number of banks served with subpoenas, including seven that had become public earlier.

Global investigation
The U.S. investigation by the New York and Connecticut attorneys general is part of a wider probe in several countries that stems from a major U.K. bank's admission that it had provided false information used to set the LIBOR rate.

RBC is Canada's largest bank, with operations in major financial centres around the world including London.

The bank said last summer that it followed the rules in submitting information for compiling the London Interbank Offered Rate, which is used widely as a benchmark to set interest rates on business and consumer debts.

That assurance was repeated Friday in RBC's response to the news reports.

"We have determined that our Libor submissions reflected our cost of funds," said Gillian McArdle, head of communications for Canada at RBC Capital Markets.

Rate-fixing alleged
The rate is set by gathering information from a small number of large banks, using a system that's intended to prevent any one member of the group from manipulating the rate.

Questions about how LIBOR is operated arose after Barclays Bank agreed to pay a record $450 million fine to settle allegations its traders had manipulated submissions to LIBOR.

While Barclays actions by themselves were probably insufficient to affect LIBOR, there authorities in Britain and elsewhere have launched probes to see if it was a more widespread problem.

Canada's competition bureau and other Canadian regulatory bodies launched their own probes in light of the Barclay's revelations but there have been no allegations levelled against RBC.

Tuesday, October 9, 2012

Barclays Bank Wins Most Innovative LIBOR Rigging Award





The Investment Banking Awards are the Oscars of the financial world. Dished out for so-called 'innovation', some of the world's richest bankers gather together to congratulate each other on devising ever more creative ways to make obscene sums of money.

One of 2012's most profitable scams was the bankers' 'innovative' approach to a key interest rate called LIBOR. Virtually every bank at the event was involved in illegally colluding to rig LIBOR, ensuring that they would always be the winners in the multi-million pound bets they were making on the markets.

When we noticed that this money-spinner had been overlooked in the ceremony, we decided to show up and make sure the LIBOR-riggers got the recognition they deserve.

Web: www.theintruders.org
Twitter: @IntrudersAction
Facebook: /WeAreTheIntruders

Thursday, August 16, 2012

Libor Scandal: US Regulators Summon Seven Banks



http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9479052/Libor-scandal-US-regulators-summon-seven-banks.html 


Libor scandal: US regulators summon seven banks


Pressure on the banking sector over the Libor-rigging scandal was ramped up after it emerged that seven banks, including the Royal Bank of Scotland and HSBC, have been issued with subpoenas in the US.


New York Attorney General Eric Schneiderman and Connecticut Attorney General George Jepsen are jointly investigating and have requested information from JP Morgan Chase, Barclays, state-backed lender Royal Bank of Scotland and HSBC.

By Angela Monaghan, and Szu Ping Chan
8:05AM BST 16 Aug 2012

The threat of prosecutions loomed closer as authorities in New York and Connecticut became the latest to widen the investigation into the alleged manipulation of the interbank lending rate.

New York Attorney General Eric Schneiderman and Connecticut Attorney General George Jepsen are jointly investigating and have requested information from JP Morgan Chase, Barclays, state-backed lender Royal Bank of Scotland and HSBC. UBS, Deutsche Bank and Citigroup were also named in the report by Bloomberg.

Ralph Silva, a banking analyst at SRN, said: "This is actually a bit surprising. We expected to hear more banks being served with Libor subpoenas, but we didn’t expect to see them all happen at the same time.
"It’s quite clear that over the past six months [regulators] have put a tremendous amount of resources into this, and it looks like all those investigations are coming to a head right about now."

Sunday, July 29, 2012

Tim Geithner Admits Banks Bailed Out
Using Rigged LIBOR Interest Rate,
Costing Taxpayers Billions

Tim Geithner Admits Banks Bailed Out With Rigged Libor, Costing Taxpayers Huge Amount
Posted: 07/25/2012 11:06 am

Timothy Geithner claimed on Wednesday that the government had no choice during the financial crisis but to lend to banks and AIG using an interest rate, Libor, that everybody knew was flawed.

Call it a back-door bailout: By using an artificially low Libor, the government saved the banks and AIG millions, maybe billions -- and cost the taxpayers the same amount.

The use of Libor in the bailouts also rubber-stamped that hopelessly manipulated interest rate as a market measure, raising still more questions about just how worried Geithner and other regulators really were about it.

In a House Financial Services Committee hearing on Wednesday, Treasury Secretary Geithner was asked why Treasury and the Fed used the London Interbank Offered Rate as a basis for loans to insurance giant American International Group and to U.S. banks under the Term Asset-Backed Securities Loan Facility -- even though Geithner and other regulators had long suspected that Libor was artificially low, as Geithner testified.

"We were in the position of investors around the world," Geithner shrugged. "You have to choose a rate, and we did what everybody did -- use the best rate available at the time."

Geithner repeated his claim that he warned other U.S. and British regulators in the spring of 2008 about possible manipulation of the key interest rate and recommended changes to the way the rate was set.

But he also said that, months later, when it came time to set bailout terms for the Too Big To Fail Set, the government just had no other choice but to use Libor.

Sure, that's one way to look at it. Another, less charitable way to look at it is that the Fed was fully aware that Libor was being manipulated lower, and was fine charging an artificially low rate to lend money to banks and to AIG, in what amounted to yet another kind of bailout. Why make life harder for them, right? They had enough problems dealing with the crisis they had created. Raising red flags about Libor might have only made the crisis worse, making it harder for banks to borrow money.

Sunday, July 22, 2012

Prosecutors, Regulators Close to Making Libor Arrests



Exclusive: Prosecutors, regulators close to making Libor arrests

REUTERS http://goo.gl/tgLs1

By Matthew Goldstein and Jennifer Ablan and Philipp Halstrick
Sun Jul 22, 2012 12:18pm EDT

(Reuters) - U.S. prosecutors and European regulators are close to arresting individual traders and charging them with colluding to manipulate global benchmark interest rates, according to people familiar with a sweeping investigation into the rate-rigging scandal.

Federal prosecutors in Washington, D.C., have recently contacted lawyers representing some of the individuals under suspicion to notify them that criminal charges and arrests could be imminent, said two of those sources who asked not to be identified because the investigation is ongoing.

Defense lawyers, some of whom represent individuals under suspicion, said prosecutors have indicated they plan to begin making arrests and filing criminal charges in the next few weeks. In long-running financial investigations it is not uncommon for prosecutors to contact defense lawyers for individuals before filing charges to offer them a chance to cooperate or take a plea, these lawyer said.

The prospect of charges and arrests of individuals means that prosecutors are getting a fuller picture of how traders at major banks allegedly sought to influence the London Interbank Offered Rate, or Libor, and other global rates that underpin hundreds of trillions of dollars in assets. The criminal charges would come alongside efforts by regulators to punish major banks with fines, and could show that the alleged activity was not rampant in the banks.

"The individual criminal charges have no impact on the regulatory moves against the banks," said a European source familiar with the matter. "But banks are hoping that at least regulators will see that the scandal was mainly due to individual misbehavior of a gang of traders."

In Europe, financial regulators are focusing on a ring of traders from several European banks who allegedly sought to rig benchmark interest rates such as Libor, said the European source familiar with the investigation in Europe.

The source, who did not want to be identified because the investigation is ongoing, said regulators are checking through emails among a group of traders and believe they are now close to piecing together a picture of how they allegedly conspired to make money by manipulating the rates. The rates are set daily based on an average of estimates supplied by a panel of banks.

"More than a handful of traders at different banks are involved," said the source familiar with the investigation by European regulators.

There are also probes in Europe concerning Euribor, the Euro Interbank Offered Rate.

It is not clear what individuals and banks federal prosecutors are most focused on. A top U.S. Department of Justice lawyer overseeing the investigation did not respond to a request for a comment.

Reuters previously reported that more than a dozen current and former employees of several large banks are under investigation, including Barclays Plc, UBS and Citigroup, and have hired defense lawyers over the past year as a federal grand jury in Washington, D.C., continues to gather evidence.

The activity in the Libor investigation, which has been going on for three years, has quickened since Barclays agreed last month to pay $453 million in fines and penalties to settle allegations with regulators and prosecutors that some of its employees tried to manipulate key interest rates from 2005 through 2009.

Barclays, which signed a non-prosecution agreement with U.S. prosecutors, is the first major bank to reach a settlement in the investigation, which also is looking at the activities of employees at HSBC, Deutsche Bank and other major banks.

The Barclays settlement sparked outrage and a series of public hearings in Britain, after which Barclays Chief Executive Bob Diamond announced his resignation from the big British bank.

The revelations have raised questions about the integrity of Libor, which is used as benchmark in setting prices for loans, mortgages and derivative contracts.

Adding to concerns are documents released by the New York Federal Reserve Bank this month that show bank regulators in the United States and England had some knowledge that bankers were submitting misleading Libor bids during the 2008 financial crisis to make their financial institutions appear stronger than they really were.

Among other details, the Fed documents included the transcript of an April 2008 phone call between a Barclays trader in New York and Fed official Fabiola Ravazzolo, in which the unidentified trader said: "So, we know that we're not posting um, an honest LIBOR."

The source familiar with the regulatory investigation in Europe said two traders who have been suspended from Deutsche Bank were among those being investigated. A Deutsche Bank spokesman declined to comment.

The Financial Times reported on Wednesday that regulators we're looking at suspected communication among four traders who had worked at Barclays, Credit Agricole, HSBC and Deutsche Bank.

Credit Agricole said it had not been accused of any wrongdoing related to the attempted manipulation of Libor by Barclays, but had responded to requests for information for various authorities related to the matter.

Beyond regulatory penalties and criminal charges, banks face a growing number of civil lawsuits from cities, companies and financial institutions claiming they were harmed by rate manipulation. Morgan Stanley recently estimated that the 11 global banks linked to the Libor scandal may face $14 billion in regulatory and legal settlement costs through 2014.

In the United States, the regulatory investigation is being led by the Commodity Futures Trading Commission, which has made the Libor probe one of its top priorities.

(Reporting by Matthew Goldstein and Jennifer Ablan in New York and Philipp Halstrick in Frankfurt, with additional reporting by Emily Flitter in New York and Aruna Viswanatha in Washington, D.C.; Editing by Alwyn Scott and Maureen Bavdek)

Tuesday, July 10, 2012

The Rot Spreads


A reader sent me this masthead from the Huffington Post, what a photo of Geithner! LOL!!!

The article masthead has since changed and I'll just link some URLs below as it appears these articles are being updated in real time at the Huffington Post.

http://www.huffingtonpost.com/2012/07/10/timothy-geithner-barclays-libor_n_1662389.html?1341951367

http://www.huffingtonpost.com/2012/07/10/federal-reserve-of-new-york-libor-scandal_n_1661268.html

Also this link from Business Week:

http://www.businessweek.com/news/2012-07-10/senate-committee-to-question-geithner-bernanke-on-libor

Thursday, July 5, 2012

Stiglitz says 'Send Bankers to Jail'




Published on Monday, July 2, 2012 by Common Dreams
Following Barclays' Scandal, Stiglitz says 'Send Bankers to Jail'
Without threat of prosecution, says Nobel economist, expect little to change
- Common Dreams staff

Nobel Prize winner and former World Bank economist Joseph Stiglitz has called recent revelations that Barclays and other large banks colluded to defraud their costumers by artificially leveraging international interest rates a "textbook illustration" of how banks use privileged information and lax oversight to reap rewards for themselves while savaging the wider societies in which they operate.

This undated file photo made available by Barclays Bank Monday July 2, 2012 shows the Chairman of United Kingdom-based Barclays bank Marcus Agius in London. The chairman of Barclays announced his resignation Monday July 2, 2012 after accepting responsibility for a price-fixing scandal that saw the bank slapped with trans-Atlantic fines of $453 million. Last week, U.S. and British agencies imposed the fines on Barclays for submitting false data on interbank borrowing rates between 2005 and 2009. The bank's executives have been under fire since then and the calls are growing for chief executive Bob Diamond to quit too. (AP Photo/Barclays Bank/VisualMedia, HO)



In an interview with The Independent on Monday, Stiglitz argued (with Barclay's as just the most recent example) that bankers -- without threat of prosecution or jail time -- would continue to use their elevated status to exploit weak regulations, consolidate power, and avoid accountability.

The scandal at Barclays claimed the resignation on Sunday of Chairman Marcus Agius after traders at the bank admitted manipulating Libor, a baseline interest rate used by banks to set lending costs around the world and which acts as the benchmark, according to an estimate by Reuters, on $350 trillion in derivatives and other financial products.

Stiglitz argues, in paraphrase by interviewer Ben Chu, "that breaking the economic and political power that has been amassed by the financial sector in recent decades, especially in the US and the UK, is essential if we are to build a more just and prosperous society. The first step, he says, is sending some bankers to jail."

The banks, said Stiglitz in the interview, "create the non-transparent market" by dominating the legislative process that is suppose to control it.  "For every meeting that the government has with [bankers], it [should] have to have a meeting with the labor groups and the representatives of civil society," he said. "The problem today is that there’s not equality of access."

And it's not just the banks, Stiglitz says. "Everybody knew that there was this scope for Libor manipulation. Many economists couldn’t believe that it wasn’t going on. We’re focusing on the bankers but at the micro economic level this goes on all the time. I was party to a suit in the state of Alaska. Oil companies were supposed to pay the state royalties – 60 per cent of the net price, the price of oil net of their transportation costs. They manipulated the transportation costs. They had to pay the state of Alaska $1bn. Stealing a penny a time. For every gallon, they stole a penny, or a fraction of a penny. This is in the nature Adam Smith’s invisible hand when there is a lack of transparency."

In a related analysis, Naked Capitalism's Yves Smith, wonders why the Barclays' Libor scandal caused such justifiable outrage in the UK, but generated barely a murmor in the US. And separately, Reuters tracks developments in the Barclays' case as embattled CEO Bob Diamond fends off criticism after Agius' departure.

Eliot Spitzer Interview With Matt Taibbi: It's Over For The Banking Cabal



Wednesday, July 4, 2012

The Many Ways Banks Commit Criminal Fraud



Posted at Zerohedge.com

The Libor scandal seems to be waking people up to manipulation and fraud by the big banks.

There are many other types of fraud they've engaged in as well ...
Here is a partial list:
  • Pledging the same mortgage multiple times to different buyers. See thisthisthisthis and this
  • Engaging in mafia-style big-rigging fraud against local governments. See thisthis and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See thisthisthis and this
  • Engaging in unlawful "Wash Trades" to manipulate asset prices. See this,this and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here,herehereherehereherehere,herehereherehere and here
  • Participating in various Ponzi schemes. See thisthis and this
But at least the big banks do good things for society, like loaning money to Main Street, right?
Actually:
  • The big banks have slashed lending since they were bailed out by taxpayers ... while smaller banks have increased lending. See this,this and this

Tuesday, July 3, 2012

The City of London Banking Cabal Implodes



Things are moving so fast in the UK now I don't think even I can keep up with it. I found this interesting web site at The Guardian that is updating the news in realtime so rather than re-write all this coming out, I'm just going to direct you to this amazing URL directly:

Barclays blames 'senior Whitehall figures' for Libor scandal
as Bob Diamond resigns - live feed




2008 email implicates Bank of England and Labour government in Libor manipulation
• Barclays briefs media on CEO's departure - 3.25pm onwards
• COO Jerry Del Missier also resigns - full details
Sir Mervyn King implicated.....
Will Diamond now 'declare war' on Bank of England?
Boris Johnson still values Diamond
Barclays statement here

Note: The Bank of England is Rothschild . It is, like the Federal Reserve (co-owned by blood-line families along with the Rothschilds) , anything but Government owned, despite its official sounding name.  All central banks are Rothschild owned but 2 (I believe Russia and China).  The BIS is also a Rothschild enterprise.




Sunday, July 1, 2012

Barclay's LIBOR Corruption a Phony Ploy to Strengthen the Bloomberg/Qatar QIBOR?


Reposted from The Daily Bell


Barclay's LIBOR Corruption a Phony Ploy to Strengthen the Bloomberg/Qatar QIBOR?

Thursday, June 28, 2012 – by Staff Report

Barclays Libor fix trail leads to senior managers ... Senior Barclays managers were worried over negative headlines during the financial crisis and contributed to a culture that fixed key funding rates artificially low, U.S. and UK regulators said in reaching a settlement with the bank. The findings based on internal emails and other communications raise questions about how high up the Barclays management chain came instructions to submit lower rates, and who knew about the rate rigging. – Reuters


Dominant Social Theme: The corruption of these Western banks is terminal!

Free-Market Analysis: So Barclay's resides at the "heart of darkness" which is LIBOR – various rates at which banks and the rest of can borrow. Something isn't quite right about this.

Bloomberg is busy setting up QIBOR in Qatar, and the putative explanation is that there is too much corruption in London. Now we have an example of corruption! Convenient? Right on time ...

QIBOR is just like LIBOR and those involved will "set" the rate at which banks borrow after conversing with banks themselves. This is a US$ 90 trillion market and thus the movement of this facility from London to Qatar is no small event.

If one were interested in moving such a large market, charges of corruption would surely be helpful. And lo and behold, we are reading about them everywhere.

What is the big deal about financial corruption? It is simply a fact that the world's modern central banking is shot through with corruption. How could it be otherwise? It begins with central banks that fix the price of money and its volume and continues from there.

When a small group of people have the power to basically print as much money as they want – and do – then to act surprised that "corruption" permeates the entire system is somewhat, well ... manipulative in our view.
This LIBOR "scandal" has a manufactured smell to it in our humble opinion. For one thing, the headlines are screaming about Barclay's as if the bank was manipulating rates UP (and maybe they did). But this Reuters story indicates that rates were being set artificially low – because of a fear that Barclay's would be seen as a gouger.

Wednesday, February 29, 2012

USA Conducting Criminal Probe of LIBOR Rate Setting by Banks


The LIBOR rate underpins loans to consumers, companies derivatives,  interest-rate swaps, floating- and fixed-rate interest payments. 
(Reuters) - The Justice Department is conducting a criminal probe into whether the world's biggest banks manipulated a global benchmark rate that is at the heart of a wide range of loans and derivatives, from trillions of dollars of mortgages and bonds to interest rate swaps, a person familiar with the matter said.