Daily Archives: June 7, 2015

BBA Was Told Banks Lied About Libor to Boost Profits in 2007

The British Bankers’ Association was told that banks were lying about Libor submissions to suit their trading positions as early as 2007, according to evidence at a London criminal trial.

“I am starting to receive more and more comments and queries on the levels at which rates are currently setting,” BBA Libor Director John Ewan said in a November 2007 e-mail sent to Libor panel banks, which was shown to jurors in London today. “Currently these queries are coming largely from hedge funds, non-contributor banks, and the occasional broker.”

The e-mails came to light Friday, on the eighth day of the trial of former UBS Group AG and Citigroup Inc. trader Thomas Hayes, who is accused of eight counts of conspiracy to manipulate the London interbank offered rate. BBA deputy Chief Executive Officer Sally Scutt was being questioned about the lobby group’s oversight of the rate by defense lawyers Friday.

Ewan requested feedback from the banks and received several responses that detailed some bankers’ concerns that competitors were submitting rates that suited trading bets.

“Many institutions set their Libors based on their derivative reset positions,” Philip Rawlins, a treasury employee at Bank of Scotland Plc, said in a Dec. 6, 2007, message.

Read on.

Elderly couple losing home of 64 years to foreclosure

ORION TOWNSHIP, Mich. – An elderly couple in Michigan needs your help. They’ve lived in their home for more than 50 years, but now due to an unforeseen set of circumstances they are being forced to find a new place to live.

Lois Parker says she and her husband, Claude, moved into the house 64 years ago, after getting married at 23. It’s the only home they’ve every lived in together.

Now Lois and Claude are losing their home to foreclosure.

They took out a second mortgage and, unknowingly, were only paying on the interest.

On a fixed income, they got behind on their payments and the bills started piling up, including bills for medications costing more than a $1,000 a month.

Read on.