http://leahlaxforpresident2012.blogspot.com/2012/06/more-on-hsbc-money-laundering-paypal.html
http://leahlaxforpresident2012.blogspot.com/2012/05/banking-giant-hsbc-criminal-enterprise.html
Paypal
http://leahlaxforpresident2012.blogspot.com/2012/06/real-99-eight-count-class-action.html
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A new nightmare on Wall Street? U.S. banks face criminal probe into global interest rate-fixing scheme as Barclays blows the whistle on America's financial giants
By TOBY HARNDEN and THOMAS DURANTE
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Some of America's top banks are set to be dragged into a major criminal investigation of a global interest rate-fixing scandal about to engulf some of Wall Street's biggest institutions.
The worldwide probe centres on claims traders at Barclays colluded with rival banks to keep interest rates at levels to their benefit.
Barclays agreed to pay a whopping $453million in fines to the U.S. Justice Department and the UK's Financial Services Authority.
But it emerged tonight the bank had struck a deal of 'extraordinary co-operation' with regulators in Washington and London - potentially exposing collusion on interest rates among banks across the globe.
Settlement: Barclays agreed to pay a whopping $453million fine in an agreement struck with regulators in Washington, London and the U.S. Justice Department
Cooperating: It is believed that part of Barclays Chief Executive Bob Diamond¿s agreement with U.S. authorities would be to give up other top banks around the world
The bank admitted to manipulating key interest rates, increasing pressure on other banks to cooperate in a probe that could cost the financial industry billions of dollars.
The agreement came after coordinated investigations lasting years and is just the first in a series of potential cases against other financial firms, including HSBC, Citigroup and JPMorgan Chase.
But it is Barclays' decision to co-operate with authorities that has sent a wave of panic through financial institutions across America.
It is believed that part of Barclays chief executive Bob Diamond’s agreement with American authorities would be to give up other top banks around the world who may be involved.
HOW BARCLAYS TRADERS CONSPIRED TO FIX THE MARKETS
Between 2005 and 2009, more than 200 requests were sent, usually by email or instant messenger - by traders to the Barclays Libor submitters.
In one example of several provided by the FSA, a trader emailed the Barclays Libor submitter in March 2006, writing: 'The big day [has] arrived… My NYK are screaming at me about an unchanged 3(month) libor. As always, any help wd be greatly appreciated. What do you think you’ll go for 3(month)?'
The submitter replied: 'I am going 90 altho 91 is what I should be posting.'
The trader thanked him, saying: '..when I retire and write a book about this business your name will be written in golden letters.'
The submitter then replied: 'I would prefer this [to] not be in any book!'
In another example from April 2006, a trader requested low one month and three month US dollar Libor rates shortly before the submission was due.
He asked: 'If it’s not too late low 1m and 3m would be nice, but please feel free to say “no”... Coffees will be coming your way either way, just to say thank you for your help in the past few weeks.'
The submitter replied: 'Done... for you big boy.'
'This is the proverbial tip of the iceberg,' said Hervey Pitt, former chairman of the Washington-based Securities and Exchange Commission.
He added: 'It is in Barclays’ interest to prove the old adage that misery loves company and I expect they'll be implicating a lot of their colleagues in other banks.'
As a part of the deal, Barclays admitted its role in rigging the LIBOR (London Interbank Offered Rate) and EURIBOR interbank crucial interest rates to mask the scale of their bad debts.
And American authorities say Barclays is not alone, with a number of other banks also taking part in a full-scale, global fraud.
A senior manager at Citigroup’s Japanese operation left the firm late last year after his division was temporarily banned from trading linked to Libor and its Tokyo equivalent, Tibor, by theauthorities.
Giant Swiss bank UBS said it had approached regulators with information over abuses of the rate-setting system.
The Libor rate is crucial, since it is a key benchmark for trillions of pounds’ worth of financial products.
The $450million fine on Barclays from the UK and U.S. authorities, issued on Wednesday, is likely to be only the beginning of a wave of punishments and civil suits for damages against other banks caught up in the global web of deceit.
Experts said banks might have to set aside billions of dollars in damages to cover their liabilities resulting from the conspiracy.
Between 2005 and 2009, certain Barclays traders requested that their LIBOR and EURIBOR submitters contribute rates that would benefit the financial positions held by those traders.
Assistant Attorney General Lanny A. Breuer said in a statement: ‘For years, traders at Barclays encouraged the manipulation of LIBOR and EURIBOR submissions in order to benefit their financial positions; and, in the midst of the financial crisis, Barclays management directed that U.S. Dollar LIBOR submissions be artificially lowered.
‘For this illegal conduct, Barclays is paying a significant price.'
The requests were made by traders in New York and London, via electronic messages, telephone conversations and in-person conversations.
The employees responsible for the LIBOR and EURIBOR submissions went along those requests numerous times in submitting the bank’s contributions, according to the Justice Department.
Difficult day: Barclays shares plunged over fears about the fate of its leadership and possible lawsuits in the wake of the scandal
On some occasions, Barclays’ submissions affected the fixed interest rates.
The Justice Department’s assistant director in charge, James W. McJunkin, said in a statement: 'Barclays Bank’s illegal activity involved manipulating its submissions for benchmark interest rates in order to benefit its trading positions and the media’s perception of the bank’s financial health.'
In the UK, Labour leader Ed Miliband has also demanded a criminal probe into the interest rate scandal.
Asked how much wider the rate-fixing scandal might go, British Chancellor George Osborne told MPs: ‘HSBC and RBS are two of the banks under investigation, but international banks such as UBS and Citigroup are under investigation too, partly for activities conducted in this country.’
Mr Osborne said the total impact on the economy and on individuals was ‘extremely difficult to work out, because the Libor rate was manipulated up as well as down’.
‘Sometimes the rate was too low for the true market price, and sometimes it was too high,’ he said.
‘The Financial Services Authority has made it clear, however, that that contributed to a risk to the country’s financial stability, and the cost of that is enormous.’
At least eight agencies, including Britain's Financial Services Authority and Japan's Financial Supervisory Agency, have carried out probes into the LIBOR and EURIBOR scandal.
A broader LIBOR probe dates to at least 2011 and includes Japanese, Canadian and Swiss authorities.
Last year, UBS agreed to cooperate with U.S. investigators in exchange for conditional immunity from prosecution.
Earlier this year, in documents filed in Ontario Superior Court, a Canadian antitrust regulator said that a 'cooperating party' provided information on how the alleged LIBOR manipulation took place.
HOW BANK 'TRIED TO COVER ITS TRACKS AND LIED TO REGULATOR'
Barclays was yesterday shown to have ruthlessly covered up its attempts to manipulate interest rates, as well as lying to the City regulator.
Emails released by the Financial Services Authority reveal that a whistleblower warned the bank was being ‘dishonest by definition’, but was ignored by his boss.
On December 4, 2007 – just a few months after the credit crunch began – a Barclays worker emailed ‘Manager E’, laying out his fears about the bank’s behaviour.
But the bank failed to do anything about it, providing further damning evidence of a culture of fraud and manipulation.
In the email, the ‘submitter’ – the person responsible for filing the daily Libor rates to the British Bankers’ Association – said he was ‘feeling increasingly uncomfortable’.
He said: ‘My worry is that we [both Barclays and the contributor bank panel] are being seen to be contributing patently false rates.
‘We are therefore being dishonest by definition and are at risk of damaging our reputation in the market and with the regulators.’
If he had a ‘free hand’, he wanted to submit a one-month, dollar Libor rate of around 5.45 per cent, but he actually filed a rate of 5.30 per cent.
Although the bank’s compliance department contacted the FSA two days after the email was sent, it failed to tell the whole truth, the regulator said.
Its report states: ‘Compliance relayed an unspecific concern about the levels at which other banks were setting US dollar Libor (at rates lower than Barclays’ submissions).
‘Compliance did not inform the FSA that Barclays’ own submissions were incorrect or that the submitter’s determination of where Libor should be set was being over-ruled.’
It said Barclays had told it the submissions were ‘within a reasonable range and could be justified’.
On another occasion, the emails reveal that senior staff at the bank simply lied to the regulator when quizzed about Libor submissions.
On March 5, 2008, the FSA asked the bank’s ‘money market desk’ about its Libor rates. A submitter discussed his response with his manager, saying he wanted to file a rate of ‘Libor plus 20 [basis points]’ – but was told to file a lower rate.
The manager, ‘Manager D’, said: ‘Yeah, I wouldn’t go there for the moment... I would rather we sort of left that at like zero or something.’
The lower rate of Libor plus nothing was filed.
The submitter wrote: ‘It is a sad thing really, because, you know, if they’re [the FSA] truly trying to do something useful... it would be nice if they knew.’
Read more: http://www.dailymail.co.uk/news/article-2166198/Interest-rate-scandal-Will-Barclays-turn-banks-involved-massive-scheme.html#ixzz1z9fwM2Xc
Barclays and HSBC hit by Obama levy
By Sam FlemingRead more: http://www.dailymail.co.uk/money/article-1243380/Barclays-HSBC-hit-Obama-levy.html#ixzz1z9gzEECz
Barclays and HSBC yesterday emerged as the biggest potential UK losers from President Barack Obama's new £55bn levy on Wall Street.
The two giants are more likely to suffer than other British banks because they have large New York subsidiaries. Royal Bank of Scotland, which owns American financial group Citizens, is also tipped to take a hit.
Obama said yesterday the annual levy was intended to force Wall Street investment banks to stump up for the aid they received from the US taxpayer. Fees could be imposed for a decade, allowing the American authorities to hoover up at least £55bn.
HSBC could be forced to pay back £171m a year for a decade
He said: 'My determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at the very firms who owe their continued existence to the American people.'
Estimates from Morgan Stanley suggest Barclays, which snapped up Lehman Brothers' US securities division in 2008, could be forced to pay at least £223m a year under the President's plan. HSBC could pay£171m and Royal Bank of Scotland's Citizens division may have to pay £31m a year.
Obama's initiative, which will have to be approved by Congress, will affect around 50 firms, including 10-15 US subsidiaries of overseas companies. The idea is to claw back losses from the £430bn Troubled Asset Relief Program.
It will be on the table later this month when UK Treasury Minister Paul Myners convenes G7 officials in Downing Street to discuss new levies on the banking system to build up funds to insure against future meltdowns.
Barclays, HSBC and RBS had no comment on the Obama proposals.
The White House's initiative will take some heat off Chancellor Alistair Darling, who has been lambasted by the City for imposing a unilateral levy on bonuses and a higher 50p rate of tax on well-off individuals.
Today London Mayor Boris Johnson will renew his attack over the government's City policies, warning the Treasury could drive thousands of bankers overseas-Despite the complaints of City bigwigs and their backers, politicians appear determined to ensure banks repay aid.
Yesterday the Paris-based Organisation for Economic Cooperation and Development warned its 30 member governments against 'complacency' as the worst effects of the financial crisis recede. The OECD estimated governments committed £7trillion to propping up banks.
Read more: http://www.dailymail.co.uk/money/article-1243380/Barclays-HSBC-hit-Obama-levy.html#ixzz1z9hGFb4H
If newspapers and other media were doing their job, this blog would not exist
If newspapers and other media were doing their job, this blog would not exist
http://impeachobamatoday.blogspot.com/2012/06/barclays-bank-fined-for-lying-and.html
Wednesday, June 27, 2012
Barclays Bank fined for lying and trying to manipulate Libor rates during crisis, worked with other banks to fix rates implying others will fall-BBC
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Update: 6/27, BBC, "More banks face interest rate rigging investigation," "The US Department of Justice also said criminal investigations into "other financial institutions and individuals" was ongoing. Other big names believed to be under investigation include Citigroup, JP Morgan (Chase), Deutsche Bank, HSBC and Royal Bank of Scotland (CitizensBank).
Barclays' misconduct relates to the daily setting of the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor).These are two of the most important interest rates in the global financial markets and directly influence the value of trillions of dollars of financial deals between banks and other institutions.
They can also affect lending rates to the public, for instance with some mortgage deals."
================================
"This of course implies that Barclays is simply the first bank to settle and we will see fines and punishments against some of the other big banks of the world."
6/27/12, "Barclays fined for attempts to manipulate Libor rates," BBC
"Barclays has been fined £290m ($450m) for trying to manipulate a key bank interest rate which influences the cost of loans and mortgages. Its traders lied to make the bank look more secure during the financial crisis and, sometimes - working with traders at other banks - to make a profit."...
BBC Business Editor Analysis:
"Barclays has admitted that a group of traders lied about what it was costing the bank to borrow. Now, why does this matter?
It matters because lots and lots of deals involving clients of Barclays used the interest rate into which Barclays was feeding this information, about its own borrowing costs, to determine the profit and loss on their own deals.
It's quite hard to think of behaviour by a bank as shocking as this: not telling the truth about what it is costing you to borrow, that then becomes a benchmark for pricing other deals.
The statement from the US regulator, which levied a big chunk of the fine, talks about how Barclays was working with other banks to try to fix this interest rate.
This of course implies that Barclays is simply the first bank to settle and we will see fines and punishments against some of the other big banks of the world."
Update: 6/27, BBC, "More banks face interest rate rigging investigation," "The US Department of Justice also said criminal investigations into "other financial institutions and individuals" was ongoing. Other big names believed to be under investigation include Citigroup, JP Morgan (Chase), Deutsche Bank, HSBC and Royal Bank of Scotland (CitizensBank).
Barclays' misconduct relates to the daily setting of the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor).These are two of the most important interest rates in the global financial markets and directly influence the value of trillions of dollars of financial deals between banks and other institutions.
They can also affect lending rates to the public, for instance with some mortgage deals."
================================
"This of course implies that Barclays is simply the first bank to settle and we will see fines and punishments against some of the other big banks of the world."
6/27/12, "Barclays fined for attempts to manipulate Libor rates," BBC
"Barclays has been fined £290m ($450m) for trying to manipulate a key bank interest rate which influences the cost of loans and mortgages. Its traders lied to make the bank look more secure during the financial crisis and, sometimes - working with traders at other banks - to make a profit."...
BBC Business Editor Analysis:
"Barclays has admitted that a group of traders lied about what it was costing the bank to borrow. Now, why does this matter?
It matters because lots and lots of deals involving clients of Barclays used the interest rate into which Barclays was feeding this information, about its own borrowing costs, to determine the profit and loss on their own deals.
It's quite hard to think of behaviour by a bank as shocking as this: not telling the truth about what it is costing you to borrow, that then becomes a benchmark for pricing other deals.
The statement from the US regulator, which levied a big chunk of the fine, talks about how Barclays was working with other banks to try to fix this interest rate.
This of course implies that Barclays is simply the first bank to settle and we will see fines and punishments against some of the other big banks of the world."
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