• Mon
  • Dec 22, 2014
  • Updated: 2:21am

Libor

Libor (London interbank offered rate), is meant to represent how much banks pay to borrow from one another. It is also a benchmark for at least US$550 trillion worth of contracts spanning interest rate derivatives to residential mortgages. A scandal erupted after banks were found to be rigging the system. Barclays was fined US$453 million by global regulators in June 2012 for manipulating Libor, and UBS was hit with a US$1.5 billion bill in December 2012. In February 2013, RBS was fined US$612 million to settle US and UK regulatory charges of misconduct, manipulation, attempted manipulation and false reporting of yen, Swiss franc and dollar-denominated Libor. 

US regulator sues 15 banks, including HSBC, for rigging Libor benchmark

Bank of America is among the banks sued for manipulating Libor

The US Federal Deposit Insurance Corporation (FDIC) has sued HSBC, Citigroup, Deutsche Bank and 12 other big global banks for manipulating the Libor benchmark interest rate.

Sunday, 16 March, 2014, 5:54am

3 Rabobank ex-traders charged with manipulation of yen Libor

In October, Rabobank paid US$1 billion to resolve US and European probes into rate-rigging allegations. Photo: EPA

Three former traders at Dutch lender Rabobank were criminally charged on Monday with manipulating the yen Libor benchmark interest rate, the US Department of Justice said.

14 Jan 2014 - 3:02pm

EU fines five banks and a broker HK$18b for fixing Libor, other rates

European Union Competition Commissioner Joaquin Almunia. Photo: Reuters

European Union antitrust regulators fined six financial institutions including Deutsche Bank, Royal Bank of Scotland and Citigroup a record total of €1.71 billion (HK$18 billion) for rigging financial benchmarks.

5 Dec 2013 - 3:56am 5 comments

Nine top banks sued by Fannie Mae over Libor fixing

Fannie Mae is suing the banks for US$800 million in damages. Photo: AP

Fannie Mae sued nine of the world’s largest banks on Thursday, accusing them of colluding to manipulate interest rates and seeking more than US$800 million of damages.

1 Nov 2013 - 2:35pm

More to be charged over Libor scandal

David Green, Director of the UK Serious Fraud Office.

Britain's leading prosecutor, the Serious Fraud Office, is poised to charge more individuals in connection with a global investigation into the Libor interest-rate-rigging scandal.

7 Oct 2013 - 6:19am

Libor case raises integrity issues

The world's biggest interdealer broker is the latest financial firm to be fined in the Libor scandal. Photo: EPA

Evidence that interdealer brokers at ICAP conspired to rig Libor for a bank trader raises questions over such firms' role as honest go-betweens among banks and highlights the pressure customers can put on them.

27 Sep 2013 - 1:36am

UK fraud prosecutor charges two brokers in Libor probe

Libor suspect Tom Hayes. Photo: Reuters

Britain’s fraud prosecutor has charged two former brokers at interdealer broker RP Martin with rigging Libor benchmark interest rates, broadening the scope of the investigation into the scandal beyond big banks.

16 Jul 2013 - 8:37am

Financial benchmark reform may stumble on patchy take-up

Financial benchmark reform may stumble on patchy take-up

A global blueprint intended to stamp out manipulation of financial benchmarks, expected to be published late this week, risks failure if individual countries persist in pursuing their own regimes.

Regulators are expected to unveil final guidelines for improving transparency and oversight of benchmarks covering everything from interest rates to oil and gold.

15 Jul 2013 - 11:53am

NYSE Euronext to take over running of Libor

Regulators fined RBS more than US$460 million for rate-rigging.

The company behind the New York Stock Exchange will take over running and restoring confidence in the scandal-hit London interbank offered rate, or Libor, a British committee has ruled.

10 Jul 2013 - 4:38am

Japan banking body to tighten interbank rate monitoring

Central bankers in Europe and Asia are expressing concern about potential rate rigging by major financial institutions. Photo: Reuters

Japan’s banking industry group said on Friday it will tighten monitoring of how its interbank lending rates are set, responding to growing public distrust in benchmark rates around the world in the wake of rate-rigging scandals.

5 Jul 2013 - 1:48pm

UK prosecutor promises hefty evidence in first Libor fixing case

Tom Hayes, pictured here surrounded by media after a June court appearance, is the first suspect to come to court. Photo: AP

British prosecutors say they have extensive evidence against former trader Tom Hayes, the first suspect to come to court following a global investigation into the suspected rigging of interbank lending rates.

5 Jul 2013 - 10:47am

Ex-UBS, Citi trader Tom Hayes appears in court over Libor rigging

Tom Hayes

Prosecutors allege he conspired with employees from banks - including HSBC, UBS, Citigroup, Deutsche Bank, JPMorgan Chase and Rabobank - and three interdealer brokers - ICAP, Tullett Prebon and RP Martin - to manipulate rates.

21 Jun 2013 - 4:18am

RBS Japan head to roll over Libor rigging

Royal Bank of Scotland (RBS) faces penalties for attempts to manipulate Libor. Photo: AFP

Royal Bank of Scotland's Japan brokerage unit head is preparing to resign as the company faces penalties for attempts to manipulate benchmark interest rates, according to two people with knowledge of the situation.

12 Apr 2013 - 6:13am

Barclays bankers focused on revenue at expense of clients: Salz's report

Barclays' consumer unit said in October it would stop awarding bonuses to employees based on sales and instead focus on customer satisfaction. Photo: EPA

In the report, commissioned by the bank after it was fined £290 million (HK$3.4 billion) in June for manipulating Libor, Rothschild vice-chairman Anthony Salz criticised Barclays for failings in its culture.

4 Apr 2013 - 3:35am

Barclays to axe 3,700 jobs and cut costs after Libor losses

Barclays is to axe at least 3,700 jobs and prune its investment bank in a bid to cut costs and improve standards. Photo: Reuters

Barclays said it would "reduce headcount by at least 3,700 across the group, including 1,800 in the Corporate & Investment Bank and 1,900 in Europe Retail and Business Banking". Barclays employs 140,000 staff.

13 Feb 2013 - 12:50am

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