Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Libor’

Libor’s Climb Past 2% is Unnerving Some Investors

Posted by hkarner - 5. März 2018

Date: 04-03-2018
Source: The Wall Street Journal

A benchmark used to set borrowing costs on trillions of dollars worth of loans is on the rise, stirring concerns about the effect of higher U.S. interest rates on consumers and businesses.

The three-month U.S. dollar London Interbank Offered Rate, or Libor, surpassed 2% this week for the first time since 2008. That will lift rates on more than $100 trillion in debt and derivative contracts that are linked to the U.S. benchmark, from business and student loans to home mortgages.

Libor has been rising for the last two years as the Federal Reserve has tightened interest rates. But gains have accelerated in recent months, according to RBC Capital Markets strategist Michael Cloherty, because of changes to the U.S. tax code that have encouraged companies to reshuffle bond holdings.

One recent source of worry among strategists and investors has been the growing gap between Libor, which is set amongst banks, and the overnight index swap rate, which is determined by central bank rates. That spread has widened sharply recently and this week was at its highest level since 2009.

Back then, the sudden widening in the Libor-OIS spread signaled mounting stress within the financial system as a liquidity crunch made it more expensive for banks to lend to each other. Den Rest des Beitrags lesen »

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US regulator sues 16 banks for alleged Libor rigging

Posted by hkarner - 17. März 2014

Date: 16-03-2014

Source: BBC

Some of the world’s biggest banks have been accused of colluding to fix Libor

A US regulator has sued 16 banks for allegedly manipulating the London interbank offered rate (Libor). The Libor rate is used to set trillions of dollars of financial contracts, including mortgages and financial transactions around the world.

The regulator said the manipulation caused substantial losses to 38 US banks which were shut down during and after the 2008 financial crisis.

The sued banks include Barclays, HSBC, Citigroup and Royal Bank of Scotland.

The British Bankers‘ Association (BBA) has also been sued by the regulator – the US Federal Deposit Insurance Corporation (FDIC).

„BBA participated in the alleged scheme to protect the revenue stream it generated from selling Libor licenses and to appease the Panel Bank Defendants that were members of the BBA,“ it was quoted as saying by the AFP news agency.

The FDIC alleged that the banks mentioned in its lawsuit rigged the rate from August 2007 to at least mid-2011.

Other banks named in the lawsuit include Bank of America, JPMorgan Chase, Deutsche Bank, Lloyds Bank, Credit Suisse, UBS, and Rabobank.

Libor is the average rate at which banks lend money to one another and is decided on a daily basis.

Most of the world’s biggest banks contribute estimates to form the Libor.

But there have been allegations that some have looked to profit from it by understating or overstating their submissions.

Over the past two years, regulators across the globe have been investigating the manipulation of the rate and there have been $3.7bn (£2.26bn) in fines to date.

A string of international banks and brokers, including Barclays and the Royal Bank of Scotland, have faced both criminal and civil penalties for their involvement in the scandal.

Some banks have also been found to have understated their submissions in the period during and after the financial crisis.

They did so in order to avoid the perception that they were having to borrow at higher interest rates than their peers and might therefore be in financial difficulty.

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Exclusive: EU to fine banks billions of euros over rate rigging

Posted by hkarner - 6. November 2013

Date: 06-11-2013
Source: Reuters

A number of finance firms, including Royal Bank of Scotland and Rabobank face billions of euros in fines next month from European Union regulators for colluding on global benchmark interest rates, reinforcing Brussels‘ hard line on the sector after the financial crisis.

EU antitrust chief Joaquin Almunia is set to unveil a record fine of at least 1.5 billion euros ($2.03 billion) on six banks, including Barclays and RBS, for rigging the yen Libor interest rate benchmark, a banking source said on Wednesday.

In addition to the yen Libor fines, likely to be the biggest so far from Brussels, Almunia will also penalize another group of banks for operating as a cartel in a separate case involving the rigging of the Euribor benchmark interest rate, reported by Reuters on Tuesday.

Fines in the two cases could run to billions of euros. Den Rest des Beitrags lesen »

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Vergleiche im Libor-Skandal Rabobank zahlt 774 Millionen Euro

Posted by hkarner - 30. Oktober 2013

NZZ, 29/10.

Dank an RB

Ihre Rolle im Libor-Skandal kostet die niederländische Rabobank Strafzahlungen von rund 774 Mio. €. Der Konzernchef Moerland tritt ab.
Rabobank CC

René Höltschi, Brüssel

Die genossenschaftlich organisierte niederländische Rabobank hat am Dienstag mit mehreren in- und ausländischen Behörden Vergleiche bezüglich ihrer Rolle im «Libor-Skandal» abgeschlossen. Dabei willigte sie ein, Zahlungen von umgerechnet insgesamt rund 774 Mio. € zu leisten. Dies ist die zweithöchste Busse in dieser Affäre nach den rund 1,4 Mrd. Fr., zu deren Zahlung sich die UBS letzten Dezember bereit erklärt hat. Die Rabobank ist das fünfte Unternehmen, das einschlägige Vergleiche abschliesst. Ihr Konzernchef Piet Moerland trat am Dienstag mit sofortiger Wirkung zurück. Zwar beteuert der Konzern, kein Mitglied des Topmanagements habe von den Verfehlungen Kenntnis gehabt, doch wollte Moerland nach eigenen Angaben ein starkes Zeichen setzen. Er wird interimsweise durch das Aufsichtsratsmitglied Rinus Minderhoud ersetzt.

Ungenügende Kontrollen

Laut separaten Communiqués der Rabobank und der beteiligten Behörden, die alle den Fall untersucht hatten, traf der Konzern Vereinbarungen mit je zwei Behörden in den Niederlanden ( Zentralbank DNB als Aufsichtsbehörde, Staatsanwaltschaft) und den USA ( Commodity Futures Trading Commission [CFTC Department of Justice [DoJ ]) sowie je einer in Grossbritannien ( Financial Conduct Authority [FCA] ) und Japan ( Financial Services Agency ). Vergleichs- bzw. Strafzahlungen fliessen an die CFTC (475 Mio. $), das DoJ (325 Mio. €), die FCA (105 Mio. £) und die niederländische Staatsanwaltschaft (70 Mio. €). Zudem wird die Rabobank mit dem DoJ, mit dem sie einen Vergleich in Form eines Deferred Prosecution Agreement abgeschlossen hat, weiterhin zu dessen anhaltenden Untersuchungen gegen andere Banken und Individuen beitragen. Den Rest des Beitrags lesen »

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UBS fires eighteen over Libor-rigging scandal

Posted by hkarner - 10. Mai 2013

Date: 09-05-2013
Source: The Telegraph

Just eighteen UBS staff were sacked over the Libor-rigging scandal that saw the bank hand over $1.5bn (£940m) to regulators, the second-largest fine ever paid by a bank.  

Andrea Orcel joined UBS in November from Bank of America Merrill Lynch where he came under fire for taking a $34m pay package in 2008 after advising on the disastrous RBS-led takeover of ABN AMRO

The scale of dismissals was revealed by the chief executive of the bank’s investment arm, Andrea Orcel, as he insisted to a sceptical Banking Standards Commission he was „recovering the honour“ of the shamed institution.

Mr Orcel, who was grilled by the commission alongside chief risk officer Philip Lofts and global head of compliance Andrew Williams on the practice of Libor-rigging at the bank, maintained the scandal stemmed from a small subset of traders, and top management was unaware.

„I believe a limited number of people are responsible for what happened at UBS,“ he said. Den Rest des Beitrags lesen »

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Rolle der Banken: Wenn eine Kernkompetenz zum PR-Problem wird

Posted by hkarner - 6. April 2013

05.04.2013 | 19:26 | von nikolaus jilcH (Die Presse)

Analyse. Dass Banken bei der „Geldanlage“ helfen, sollte niemanden überraschen.

Wien. Auf der Website des deutschen Satiremagazins „Der Postillion“ stand schon Ende 2012 zu lesen: „Deutsche Bank direkt zu Gefängnis umgebaut, um Zeit und Ermittlungsarbeit zu sparen“. Die Staatsanwaltschaft, so die Witzbolde vom „Postillion“ hätte es satt, die vielen hundert Vorwürfe gegen Deutschlands größtes Geldhaus weiter zu prüfen und habe die Büros in Frankfurt schlicht einzäunen lassen. So weit ist es in der Realität zwar noch nicht gekommen – für Banken gilt aber inzwischen eine Art „Generalverdacht“.

Nicht grundlos: Tatsächlich scheint die Deutsche Bank als eine der größten der Welt in so ziemlich jeden Voll-, Halb- und Dreiviertelskandal in der Finanzwelt verwickelt, der in den vergangenen Jahren aufgeflogen ist. Zuletzt sorgte ihre Beteiligung an den Manipulationen des wichtigen Interbanken-Zinssatzes Libor für Aufregung. Auch bei der Offshore-Leaks-Affäre kommt das Frankfurter Haus nicht ungeschoren davon. Laut NDR und „Süddeutscher Zeitung“ unterhält die DB „mehr als 300 Firmen und Trusts in mehreren Steueroasen“ – größtenteils auf den britischen Jungferninseln. Den Rest des Beitrags lesen »

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Repair or Replace – Where Do We Start amongst the Ruins?

Posted by klausgabriel - 1. November 2012

Auf dem Finanzethikkongress in Zürich am 25. und 26. Oktober sprach auch Justin WelbyBischof  der Anglikanischen Kirche im Bistum Durham, England. Er ist auch Mitglied des britischen Oberhauses und der britischen Untersuchungskommission zur Klärung des Libor-Skandals .

Welby’s Resümee: dieses Finanzsystem ist höchst ineffizient und trägt in Summe nichts zum Gemeinwohl bei. Welby ist zum Schluss gekommen, dass das bestehende System nicht mehr repariert werden kann, sondern ersetzt werden muss.

Anbei ein gutes Interview des früheren Managers der Ölindustrie und wahrscheinlichen Nachfolgers des Erzbischofs von Canterbury aus dem Guardian vom 21/7/2012 Den Rest des Beitrags lesen »

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Gambling in the House?

Posted by hkarner - 29. Juli 2012

By John Mauldin | Jul 28, 2012

There Is Gambling in the House?

I Am Shocked…

Opacity and Credit Default Swaps

No Access for Spain

Rick: How can you close me up? On what grounds?
Captain Renault: I’m shocked, shocked to find that gambling is going on in here!
– From the classic scene in Casablanca, made in 1942

The latest scandal du jour seems to be about what is now called LIBORgate. But is it a scandal or is it really just business as usual? And if we don’t know which it is, what does that say about how we organize the financial world, in which $300-800 trillion, give or take, is based on LIBOR? This is actually just the second verse of the old song about derivatives, which is a much larger market. Which of course is a problem that was not solved by Dodd-Frank and that has the potential to once again create true havoc with the markets, whereas LIBOR can only cost a few billion here and there. (Sarcasm intended.)

The problem is the lack of transparency. Why would banks want to reveal how much profit they are making? The last thing they want is transparency. This week I offer a different take on LIBOR, one which may annoy a few readers, but which I hope provokes some thinking about how we should organize our financial world.

There Is Gambling in the House? I Am Shocked… Den Rest des Beitrags lesen »

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So How Much Did the Banksters Make on Libor-Related Ill-Gotten Gains?

Posted by hkarner - 16. Juli 2012

Author: Yves Smith · July 13th, 2012 · RGE EconoMonitor

Commentators and analysts have been starting to estimate what the costs to banks for their Libor manipulation might be. We’ve pointed to an estimate by the Economist that says the damages for municipal/transit authority swaps due to Libor suppression (during the crisis and afterwards) could be as high as $40 billion. Cut that down by 75% and you still have a pretty hefty number. Other observers (CFO Magazine) have argued that the losers were mainly other banks, and since banks are pretty much certain not to sue each other, the implication is the consternation is overdone. But these markets were so huge ($564 trillion was the 2011 trading volume in one contract, the CME Eurodollar contract, which uses dollar Libor as its reference rate) that even a little leakage to end customers still adds up to a lot of exposure. Den Rest des Beitrags lesen »

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Massive Furor in UK Over Libor Manipulation; Where’s the Outrage Here?

Posted by hkarner - 4. Juli 2012

Author: Yves Smith · July 2nd, 2012 ·RGE EconoMonitor
In case it isn’t yet apparent to you, the unfolding scandal over manipulation of Libor and its Euro counterpart Euribor is a huge deal. Even though at this point, only Barclays, the UK bank that was first to settle, is in the hot lights, at least 16 other major financial players, which means pretty much everybody,is implicated.First, Libor is the basis for pricing over $10 trillion of loans. As the CTFC noted:

US dollar Libor is the basis for the settlement of the three-month Eurodollar futures contract traded on the Chicago Mercantile Exchange, which had a traded volume in 2011 with a notional value exceeding $564 trillion.

The Wall Street Journal puts total in contracts affected at $800 trillion.

Second is that price fixing is a criminal violation under the Sherman antitrust act. The Department of Justice stressed that Barclays had been the first bank to cooperate with the investigation and had been extremely forthcoming, and for that reason it would not be prosecuted if it complied with the settlement terms for two years. The implication is that the DoJ will not be as generous with other banks involved in the price-fixing scheme. This is an overview from the Financial Times of Barclay’s misdeeds:

The bank admitted that it lowballed estimates of its borrowing costs from late 2007 to May 2009 because it wanted to reassure investors of its strength during the financial crisis and it believed other banks were doing the same. It also admitted that its traders improperly influenced the rate submissions from 2005 to 2008 to make money on derivatives. Den Rest des Beitrags lesen »

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