Archives: Libor

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Ex-Rabobank Traders Robson and Thompson Receive Lighter Sentences for Libor Scheme

Two former Rabobank traders received minimal and no prison time earlier this month for their participation in a conspiracy to fix Libor, or the London interbank offered rate, to benefit traders’ positions at Rabobank. On November 9, 2016, the former head of money market and derivatives trading for Rabobank in Northeast Asia, Paul Thompson, was … Continue Reading

New UK Whistleblowing Rules Encourage But Do Not Reward Employee Disclosures

The 7 September 2016 will see UK regulators implement new whistleblowing rules and guidance for certain businesses in the financial services sector. The new rules, introduced by the Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA), will apply to UK deposit takers with assets of £250m or greater including banks, … Continue Reading

Barclays Settles Libor Rate Manipulation Claims for $100 Million

It was recently announced that Barclays has agreed to pay $100 million in exchange for the dismissal of claims pursued against it by several dozen states alleging that it manipulated Libor and other benchmark interest rates between 2005 and 2009 to conceal financial issues. As part of the settlement terms, Barclays is not required to … Continue Reading

Tom Hayes Denies Manipulating Libor in Court Testimony

Former UBS trader, Tom Hayes, accused of Libor manipulation, has denied any wrongdoing while testifying at trial for his alleged role in the Libor scandal. Hayes confirmed that he attempted to influence the yen Libor, but differentiated his actions from manipulation by stating that the financial figures he requested consistently fell within an acceptable range … Continue Reading

Former Deutsche Bank Co-Chief Executive Cleared By German Regulators Investigating Libor Manipulation

German financial regulator BaFin recently advised former Deutsche Bank AG co-Chief Executive Anshu Jain that they are no longer pursuing an investigation into whether Jain intentionally misled German central bank officials investigating Libor manipulation. According to public reports, BaFin has deemed suspicions that Jain intentionally misled regulators about manipulation of Libor as “unsubstantiated.” However, the … Continue Reading

Deutsche Bank Reportedly Set to Pay Largest LIBOR Settlement to Date

Deutsche Bank has reportedly reached a deal with U.S. federal prosecutors, regulatory agencies in the U.S. and UK, as well as New York’s Department of Financial Services to enter into a global settlement to resolve claims regarding its participation in manipulating LIBOR. According to initial reports, the Bank will pay $2.5 billion to settle the … Continue Reading

Ex-Tullett Prebon Worker Enters Not Guilty Pleas to SFO Charges

On April 17, 2015, Noel Cryan, a former employee of Tullett Prebon Group, entered a not guilty plea at the Southwark Crown Court in London for charges brought by the Serious Fraud Office (SFO) related to LIBOR manipulation. Specifically, the SFO alleges that Cryan conspired to manipulate LIBOR from February 2009 through December 2009. Cryan … Continue Reading

Switzerland Trader Must Face Libor Manipulation Claim in the United States

A former UBS trader, Roger Darin’s, motion to dismiss a criminal lawsuit alleging conspiracy in Libor manipulation by trading in short-term interest rates in Asian and European UBS offices was denied this month by U.S. Magistrate Judge James Francis. Prosecutors claim that Darin conspired with Tom Hayes, another UBS trader operating in New York, to manipulate … Continue Reading

ICAP Fined for Misleading Information Regarding Yen Libor Rates

The European Union’s antitrust commission fined ICAP Plc €15 million ($17.2 million) for aiding traders to manipulate the Japanese Yen Libor rates by disseminating misleading information. The commission determined that ICAP’s information about the Yen Libor rate was “veiled as predictions or expectations” in an attempt to influence non-participating banks to submit similar numbers. ICAP … Continue Reading

Supreme Court Rules LIBOR Appeal Should Be Heard

In a unanimous decision, the U.S. Supreme Court ruled that the Second Circuit must hear an investor appeal of the 2013 dismissal of several antitrust lawsuits regarding the alleged rigging of the London interbank offered rate (Libor). The Supreme Court disagreed with the Second Circuit’s earlier decision not to hear the appeal, and held that the … Continue Reading

Former UBS Trader Seeking Dismissal of Libor Manipulation Charge

Attorneys for Roger Darin, a former UBS trader, have moved to dismiss charges of fraud related to Libor manipulation in the U.S. District Court for the Southern District of New York. After a UBS subsidiary in Japan pled guilty to charges of wire fraud, U.S. prosecutors charged Darin along with 10 other individuals regarding manipulation of … Continue Reading

Ex-ICAP Brokers Enter Not Guilty Pleas for Libor Manipulation

Danny Martin Wilkinson, Colin John Goodman and Darrell Paul Read all plead not guilty earlier this month to criminal charges of conspiracy brought by the U.K.’s Serious Frauds Office (SFO) related to Libor manipulation of the Japanese yen. The three individuals are all former brokers who worked at the British financial firm ICAP. Their trial, along with … Continue Reading

Statute of Limitations May Prevent U.K. Regulators from Issuing Libor Fines

According to reports, the U.K.’s Financial Conduct Authority (FCA) failed to meet the deadline to enforce fines on certain targeted traders for Libor manipulation schemes. The U.K. typically has a three-year statute of limitations for civil enforcement actions, which the government extended to six years in July.  The statute of limitations accrues when a regulator is … Continue Reading

Forex Rigging Costs Major Banks $4.3 Billion in Fines, Others Partially Cleared

Various regulators in the U.S. and U.K. have imposed fines against major banks for manipulating foreign exchange benchmarks totaling $4.3 billion. The fined banks include Bank of America ($250 million), HSBC ($618 million), Royal Bank of Scotland ($634 million), UBS ($799 million), Citigroup ($1 billion) and JPMorgan Chase ($1 billion). These fines arose from settlement agreements between … Continue Reading

Banks Seek Dismissal of Libor Claims Filed by Investors

In the consolidated Libor matter captioned In re Libor-Based Financial Instruments Antitrust Litigation, Case No. 1:11-md-02262 pending in the United States District for the Southern District of New York, defending banks submitted a motion to Judge Buchwald seeking a dismissal of 17 lawsuits related to rate-swapping claims. The banks filed their pleadings on November 5, 2014, … Continue Reading

U.K. Fraud Authority Seeks Additional Funds to Investigate Barclays’ Libor Rigging

Following a string of high-profile investigations, the U.K. Serious Fraud Office (SFO) has sought an additional £26.5 million ($42.4 million) to fund its ongoing probes in connection with, among other things, Barclays’ manipulation of the Libor interest rates. Specifically, the SFO noted the need for the fund to complete the investigations into Barclays PLC 2008 … Continue Reading

Analysts Estimate Possible Exposure for Forex-Rigging Fines up to $41 Billion

Citigroup analysts have estimated that investigations into rigged foreign exchange benchmarks could run as high as $41 billion globally, with Deutsche Bank AG potentially the most heavily hit with fines estimated for that bank as high as $6.5 billion. Estimates for fines expected to be levied against Barclays ($4.8 billion) and UBS AG ($4.6 billion) were … Continue Reading

Deutsche Bank Continues to Profit Despite Continued Libor Investigations

Regulators from the U.S. and U.K. have been trying to encourage Deutsche Bank to enter into settlement agreements for Libor rigging penalties. Deutsche Bank has been engaged in a formal business plan since 2012 to improve its profits despite the Libor scandal, but investigators believe future penalties may cast doubt on the bank’s financial success. Over the … Continue Reading

SFO Receives First Guilty Plea in Libor Manipulation Case

On October 3, 2014, a former banker at a major British bank pleaded guilty to a criminal charge of conspiracy to defraud in connection with Libor manipulation. Because of the high-profile nature of the Libor scandal, the court has forbidden the media to report the name of the individual and the former employer, as well as … Continue Reading

Fed Plans to Meet with Financial Institutions to Develop Libor Alternative

The Federal Reserve (the Fed) is currently searching for an alternative to the Libor interest rate standard in an attempt to avoid any issues if the existing rating system collapses. Fed Governor Jerome Powell criticized Libor because the unsecured interbank lending market that creates the benchmark has been in decline. As such, banks cannot plausibly rely upon … Continue Reading

Former Rabobank Traders Plead Guilty to Libor Yen Manipulation

On August 18, 2014, Paul Robson, a former senior trader who worked for Rabobank at its money markets and short-term forwards desk in London, pleaded guilty to partaking in a conspiracy to manipulate the Libor market for yen. Robson was purportedly Rabobank’s main employee to submit its yen Libor calculation. After being investigated by the U.S. … Continue Reading