July 19, 2012 |
The revelation that Barclays and other big banks schemed to rig Libor, a critical global interest rate, sent shock waves across the world of finance . Top bank executives resigned. Central bankers launched probes into how rates are set in Britain, Sweden, Japan and elsewhere. Some commentators called the scandal one of the worst in history. But is it possible that the manipulation actually had an upside? As analysts assess the fallout, there has been a lot of fog and little clarity about the precise impact on the global...
July 27, 2012 |
The U.S. Justice Department is preparing to file charges this fall against traders from several banks in the global probe of interest-rate rigging, but prosecutors in Britain haven't even decided whether they have a case. The United Kingdom's Serious Fraud Office (SFO) opened a criminal investigation this month after Barclays was fined a record $450 million by British and U.S. authorities. Politicians including Chancellor of the Exchequer George Osborne and Ed Miliband, leader of the...
July 22, 2012 |
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 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...
September 25, 2012 |
LONDON — The British banking lobby responsible for setting Libor said it was happy to hand over the task to regulators, days ahead of an expected U.K. proposal to take tighter control of the scandal-tainted benchmark borrowing rate. Martin Wheatley, a top U.K. regulator, is expected to propose stripping the British Bankers' Association of its supervisory role in setting the hugely influential London interbank offered rate, in plans to be presented Friday. "If Mr. Wheatley's recommendations include...
December 3, 2011 |
Every workday morning in London, at about 10 o'clock, representatives from 19 banks make a series of decisions that affect financial transactions around the world, from what homeowners pay on their mortgages to the underlying value of credit default swaps and corporate bonds. The bankers' power is unsettling, says Tim Price, who helps oversee more than $1.5 billion as director of investment at PFP, an asset management firm. "It's a kind of Wizard of Oz surrealist nightmare," he says.
July 24, 2012 |
Treasury Secretary Timothy F. Geithner has said that he sounded the alarm four years ago to regulators about problems with the benchmark interest rate known as Libor. But Geithner, who was then head of the Federal Reserve Bank of New York, did not communicate in key meetings with top regulators that British bank Barclays had admitted to Fed staffers that it was rigging Libor, according to people familiar with the matter. Instead, regulators at the Commodity...