Tag Archives: libor

Will Wall Street turn on its own over Libor? – Salon.com

23 Jul

Here’s where, maybe, Goldman Sachs comes into the picture. Because according to a Bloomberg report, Goldman — uninvolved in setting the Libor — is considering taking the law into its own hands and taking care of this Libor business with suits against the firms responsible. Like a fictional comic book metropolis, the financial industry is dreadfully underpoliced, and many of the cops are themselves on the take, so, logically, what Wall Street needs is a morally dubious but incredibly wealthy figure to operate outside the law to achieve order by any means necessary. That’s right: Goldman Sachs is going to become The Green Arrow.

via Will Wall Street turn on its own over Libor? – Salon.com.

U.S. Builds Criminal Cases in Libor Rate-Fixing Scandal – NYTimes.com

15 Jul

As regulators ramp up their global investigation into the manipulation of interest rates, the Justice Department has identified potential criminal wrongdoing by big banks and individuals at the center of the scandal.

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.

via U.S. Builds Criminal Cases in Libor Rate-Fixing Scandal – NYTimes.com.

In Barclays Inquiry, the Calculation in Making a Deal – Common Sense – NYTimes.com

14 Jul

Barclays: Too big to indict?

The question needs to be faced in the wake of the bank’s admitted efforts to manipulate the London interbank offered rate, known as Libor, the benchmark for countless interest rate determinations and approximately $450 trillion in derivative contracts.

If the Justice Department was looking for a textbook case of white-collar financial crime — including a conspiracy that was flourishing at the height of the financial crisis — this would seem tailor-made. As the facts released by the government make clear, there were two separate but overlapping schemes to manipulate Libor within Barclays. Yet the bank secured a nonprosecution agreement and agreed to pay a penalty of more than $450 million, a comparatively paltry sum for a bank that had more than £32 billion ($50 billion) in revenue in 2011. “The perception so far has been that the regulators have been toothless,” John C. Coffee Jr., professor of law and specialist in white-collar crime at Columbia Law School, told me this week.

via In Barclays Inquiry, the Calculation in Making a Deal – Common Sense – NYTimes.com.