Posts tagged 'Libor'

Some Libor frustration

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Mar 13 09:03 | Comment |

Barclays views it as imperative that the market has access to Benchmarks that are well constructed, transparent and that inspire the confidence of other market participants and regulators…

You can say that again.

Some (more) Libor reading landed this week — the responses from banks, and other cogs and gears of the market, to a recent report by Iosco about reforming financial benchmarks. Everyone from Thomson Reuters to the European Central Bank, Blackrock to Calpers, has weighed in here. Read more

A wholly unregulated Libor, FSA edition

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Mar 05 17:57 | Comment |

Yes yes, the FSA had trouble passing the Wall Street Journal around the office in mid-2008.

 Read more

RBS, and “just amazing how libor fixing can make you that much money”

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Feb 06 15:15 | Comment |

Yeah, so “stupid Libor emails” is now an established sub-genre in banker literature.

Though the funny thing about Wednesday’s RBS revelations is that attempts at manipulation generally, at least at the start, weren’t written down. The whole problem was that people trading rates were sat right next to people in charge of submitting rates for Libor. That’s due to the “Short-Term Markets Desk”, RBS management’s October 2006 bid to “facilitate more communication”. Oops. Read more

The RBS Libor files

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Feb 06 13:12 | Comment |

Presenting the CFTC order against RBS, as part of the bank’s $325m settlement with the regulator over allegations of “hundreds” of attempts at manipulation of Libor (notably Yen Libor):

 Read more

Waiting on RBS

| Jan 29 13:15 | Comment |

It’s not exactly surprising that US Libor prosecutors are pushing for criminal charges against one of Royal Bank of Scotland’s subsidiaries.

As we keep hearing, RBS’s level of involvement in the rate-rigging scandal is somewhere between Barclays, which got a nonprosecution agreement and paid $460m in penalties, and UBS, which paid $1.6bn and had to agree to having a Japanese subsidiary plead guilty to criminal charges. Read more

RBS in for another round of bonus awkwardness, with added Libor angle

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Jan 29 09:00 | Comment |

Soon, it appears, we’ll have another big Libor settlement to write about — this one from RBS. Both the FT and the WSJ are tipping the fines to be in the order of £500m. The FT says it could be more than £400m to the US authorities and about £100m to the FSA; the WSJ doesn’t mention how it might breakdown between the US and UK, but says the settlement “could be completed within the next two weeks”.

Also, yikes! RBS (or specifically, an Asian unit of RBS) might have to plead guilty to some criminal charges if the US prosecutors have their way, says the WSJ.

Shockingly RBS does not like this. But… RBS may not have any choice: Read more

Bob Diamond, John Varley, Jerry del Missier, Chris Lucas, Rich Ricci, and the Honourable Mr Justice Flaux

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Jan 24 15:10 | Comment |

Quite a victory for open justice on Thursday — senior Barclays bankers involved in the first major test litigation over Libor will be publicly named in court after all, after a High Court judge threw out their application for anonymity.

Full FT story here. (The FT joined other media organisations in challenging the anonymity.) Read more

EuriBORE: oh sorry, does this fat finger belong to you?

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Jan 14 11:50 | Comment |

The ESMA-EBA published their report on the administration and management of Euribor on Friday. Among the outline of the now familiar shortcomings of such benchmarks were tables demonstrating basic operational failures, e.g. fat finger errors by panel banks… Read more

EuriBORE: the recommendations, the fat fingers, the inconsistencies

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Jan 11 13:14 | Comment |

ESMA (European Securities and Markets Authority) and the EBA (European Banking Authority) got together to make recommendations to the EEBF (Euribor-European Banking Federation) about Euribor. All the acronyms that start with E were there. It was quite the party, we’re told. Like, the EFSF got sooo drunk and nearly bailed out the Spanish government! The ESM was seriously not amused.

Anyway… Read more

zOMG Deutsche Bank traded rates while also being on Libor panels

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Jan 10 15:56 | Comment |

The WSJ has news: “Bank Made Huge Bet, and Profit, on Libor“. The bank in question being Deutsche. The huge bet and profit being in 2008 on a bunch of rates trades.

Of course other banks did and do trade rates, in size, but let’s cut straight to the WSJ graphic… Read more

The art of email when big brother is watching

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Jan 07 12:15 | Comment |

One of the things the Libor scandal has taught us is that there actually is a big contingent of people working in banks who don’t understand that emails, like puppies for Christmas, are forever. Strange, isn’t it?

To emphasize the point, Ernst and Young reported the results of an investigation, co-developed by the FBI, on language that tends to be present in electronic communications when cases of fraud are uncovered. Read more

The three ‘muscateers’, captain ‘caos’ and SUPERMAN Assemble (at UBS)

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Dec 19 2012 09:32 | Comment |

The competition is on! Sure, UBS is already ahead of Barclays in the FSA fine stakes, but will the inevitable embarrassing communiques beat “done for you, big boy”? Opening gambit from the FSA’s Final Notice to UBS on Wednesday morning (emphasis ours):

For example, on 18 September 2008, a Trader explained to a Broker: “if you keep 6s [i.e. the six month JPY LIBOR rate] unchanged today … I will f[**]king do one humongous deal with you …

 Read more

Some colour on UBS’ ‘unquantifiable’ Libor misconduct [updated]

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Dec 19 2012 08:17 | Comment |

The FSA’s component of the UBS settlement relating to Libor and Euribor was £160m — the largest fine it has ever imposed.

The UK financial regulator made some revealing comments on the Swiss group’s transgressions, which it says “involved a significant number of employees and occurred over a period of years in a number of countries”: Read more

UBS pays up

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Dec 19 2012 06:48 | Comment |

UBS will pay a total of CHF1.4bn ($1.5bn) — or, more than three Barclays — in fines and profit disgorgements related to Libor and Euribor claims. The payments will go to US, UK and Swiss regulators. The bank has also warned of losses totalling about CHF2 to 2.5bn for the fourth quarter, largely due to the settlements and provisioning, although CHF500m related to its restructuring.

Here is the statement: Read more

‘That’ll be two Barclays please’

| Dec 13 2012 16:21 | Comment |

It might not be made public until Monday but the FT reports a fine above $1bn could be landing on UBS’s doorstep to settle allegations of Libor manipulation. Driven largely, it appears, by CFTC and DoJ penalties.

That’s more than double the Barclays record set in June… Read more

FSA takes baton from Wheatley! Sits down, writes questions, hits publish

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Dec 05 2012 11:27 | Comment |

Consultation paper from the Financial Services authority, fresh off the printing press on Wednesday morning… Read more

Thank you, Libor

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Nov 21 2012 15:33 | Comment |

“A judgmental structure of supervision that emphasises the big issues has to be matched by proper transparency . . . or it won’t work.” Andrew Bailey, head of prudential regulation at the Financial Services Authority, told that to parliamentarians on Monday.

Too bad there’s seemingly no tradition of transparent supervision in the UK, especially when it comes to banks. Read more

Guest post: Give banks a break on Libor

| Oct 03 2012 14:32 | Comment |

From Richard Farley, Leveraged Finance partner at lawyers Paul Hastings

Last Friday, Britain’s top financial regulator, Martin Wheatley of the Financial Services Authority, issued his final report with recommendations for the comprehensive reform of the scandal-ridden LIBOR setting process. Read more

Introducing New Libor [Updated]

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Sep 28 2012 08:35 | Comment |

The massive flaws in the method of setting Libor and similar rates are probably familiar to most FTAV readers by now — as are the challenges of coming up with a better replacement.

The review led by new FSA chief Martin Wheatley set out to either “strengthen Libor” or “find an alternative to Libor”. Read more

“Nice Libor”

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Sep 26 2012 10:35 | Comment |

Here’s another addition to the canon of Libor-related conversations.

A former RBS employee is suing the bank for wrongful dismissal after the bank fired him last year for allegedly participating in Libor-fixing. Tan Chi Min, the ex-employee in question, was the bank’s Singapore-based head of delta trading for Asia. Read more

Bob’s Barclays appointment and its FSA caveat

David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.

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| Sep 19 2012 12:53 | Comment |

The Treasury Committee has let loose some letters between its chairman, MP Andrew Tyrie, and the former chief executive of the FSA Hector Sants. The subject matter of the correspondence concerns the original approval by the FSA of Bob Diamond appointment as CEO of Barclays back in 2010.

The freshly released content (see below) provides confirmation that the FSA caveated its approval of Diamond with a warning that it could change its mind if there was an adverse outcome from the Libor investigation. Read more

Mann speed record for banking report set

David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.

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| Sep 18 2012 10:50 | Comment |

John Mann, the battler from Bassetlaw, is back with the results of his very own banking inquiry.

The Labour MP set up the alternate inquiry after expressing his displeasure at the omission of fellow committee member Andrea Leadsom and his good self from the specialist Libor inquiry because they were “too outspoken”. The words “whitewash” and “farce” also made an appearance: Read more

The ‘mystery Libor’ precedent

Izabella Kaminska joined FT Alphaville in October 2008. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP's internal magazine.

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| Sep 05 2012 10:59 | Comment |

By now everyone is well aware of the flaws associated with the Libor-setting process. As yet, however, no alternative has been deemed full-proof enough to replace it.

The search for a better system, however, is on. Read more

Barclays and Libor, the MPs’ report

Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)

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| Aug 18 2012 06:30 | Comment |

Click to enlarge:

It’s the product of all those Select Committee hearings, including appearances by Messrs. Diamond and Tucker. It is only a preliminary report. But it does not have kind words for the authorities who failed to stop the attempted manipulation of Libor before and during the financial crisis. (Barclays management is of course completely coruscated.) As jaded as we’ve all become by the Libor scandal, it’s pretty damning. Read more

Libor, meet transaction data. Transaction data, meet Libor

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Aug 10 2012 13:49 | Comment |

Ever wondered just how many Libor rates are kinda… more or less… fictional? In the sense that sure, maybe a bank “could” borrow there, but they don’t tend to.

The initial discussion paper of the Wheatley Review of Libor, has some nice graphics on exactly this topic. Read more

Beyond Libor (Updated)

Paul Murphy is the founding editor of FT Alphaville.

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| Aug 10 2012 11:10 | Comment |

You’ll have read a preview of this here, but the plan of action for reforming or replacing the London Inter Bank Offered Rate has now been mapped out by the incoming boss of the Financial Conduct Authority, Martin Wheatley, is now out.

Don’t get too excited. Read more

HSBC join the results, redress and remorse camp

David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.

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| Jul 30 2012 10:15 | Comment |

… with their 2012 interims.

The TL;DR version goes like this: Read more

Barclays records earnings beat (and apology)

David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.

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| Jul 27 2012 08:48 | Comment |

The bank beat expectations with an adjusted profit before tax of £4.2bn, cut its eurozone exposures, set aside £450m to compensate small and medium-sized businesses that were mis-sold interest rate hedging products and said sorry again… which was nice.

From the statement: Read more

A Deutsche Bank update

Izabella Kaminska joined FT Alphaville in October 2008. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP's internal magazine.

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| Jul 24 2012 17:47 | Comment |

A preliminary warning update from Deutsche Bank on Tuesday (flashes via Reuters):

DEUTSCHE BANK AG PROVIDES PRELIMINARY UPDATE ON SECOND QUARTER 2012 RESULTS: COSTS IMPACTED BY CURRENCY MOVEMENTS Read more

More damn lies and Libor statistics

Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.

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| Jul 24 2012 10:09 | Comment |

On the surface, the story around Libor is relatively easy to understand, hence easy to write something about. All one needs to reel readers in is a big, flashy headline number. Or so goes the theory…

Unfortunately, there aren’t any easy numbers to hand. This has not, however, stopped people from finding some figures to abuse. Read more

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