Tag Archives: LIBOR

Ex-Barclays Trader Disrupts Libor Testimony Shouting ‘No

A former Barclays Plc trader on trial for rigging Libor was admonished by the judge for an outburst that interrupted a co-defendant being questioned by a prosecutor.

Ryan Reich shouted “no, no, no, no,” from his seat on Friday after the prosecutor asked fellow ex-Barclays trader Alex Pabon on the stand if the Libor rate affected swaps valuations. After the interruption, Reich’s lawyer told him to be quiet and Judge Anthony Leonard said “interruptions should not take place.” Pabon answered that, yes, Libor did affect swaps valuations.

Reich and Pabon are on trial with former colleagues Stylianos Contogoulas, Jay Merchant and Jonathan Mathew for conspiring from 2005 through 2007 to fix the London interbank offered rate, or Libor, a benchmark tied to trillions of dollars in securities and loans. Another ex-trader, Peter Johnson, has pleaded guilty to the charge.

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Citibank To Pay CFTC $425M Over Benchmark Manipulation

Law360, New York (May 25, 2016, 9:40 AM ET) — The U.S. Commodity Futures Trading Commission said on Wednesday that it has struck two deals with Citibank NA and affiliates totaling $425 million to end allegations that the bank manipulated the Japanese and British interbank offered rates, as well as a global benchmark for interest rate products.

Citibank and its Japanese affiliates will pay $175 million to settle CFTC claims that the bank tweaked LIBOR submissions based on internal concerns. Citibank will also pay $250 million in civil fines to settle other allegations. (Credit: AP) The…

Source: Law360

16 Big Banks To Face Revived Libor Antitrust Suit

Law360, New York (May 23, 2016, 11:49 AM ET) — A federal appellate panel on Monday revived an antitrust lawsuit against 16 big banks, including  Citigroup, JPMorgan Chase and Bank of America, alleging they rigged the London Interbank Offered Rate.

A three-judge Second Circuit panel ruled that Manhattan U.S. District Judge Naomi Reice Buchwald was wrong when she dismissed the complaints against the banks on the grounds that the plaintiffs had failed to allege injury under antitrust law. The panel instead found that the proceedings should be reopened because antitrust law does not require that plaintiffs…

Source: Law360

Banks identify possible replacements for U.S. Libor

A group of global banks and clearing houses, working with U.S. regulators, said on Friday it has identified two possible replacements for Libor, the benchmark interest rate for $160 trillion worth of credit for everything from home mortgages to corporate loans.

The Alternative Reference Rates Committee (ARRC) said that together with the Federal Reserve it has identified the Fed’s Overnight Bank Funding Rate (OBFR) and the overnight rate on U.S. Treasury securities pledged as collateral in repurchase, or repo, transactions as alternatives.

The London Interbank Offered Rate has been in regulators’ cross hairs since its credibility was tarnished by a rate-rigging scandal emerging from the 2008 financial crisis. About a dozen global banks collectively have paid tens of billions of dollars in fines to settle the matter.

“The case for moving ahead to a new benchmark is very strong. The new benchmark is going be robust with a lot of transactions and will be resistant to manipulation,” Fed Governor Jerome Powell told Reuters.

ARRC said the two rates it identified as replacements represent “robust” markets, each with $300 billion worth of daily trades. Bankers and regulators have raised alarms about diminishing daily liquidity in the markets for unsecured loans like Libor, calling into question their reliability as a gauge for U.S. borrowing costs.

The stakes are large: Libor’s benchmark 3-month rate stands as a reference rate for pricing $160 trillion of loans in the United States and, together with companion rates in Europe and Asia, has some $350 trillion of global credit tied to it.

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Ex-Barclays trader tells court Libor rate promise was ‘just banter’

A former Barclays trader accused of conspiring to rig a global interest rate said a promise to name a colleague in a book and to invite him to his bar in return for help in setting Libor was “just banter”.

Greek-born Stylianos Contogoulas told Southwark Crown Court on Wednesday that he had been instructed by his boss within days of joining the Barclays dollar desk in 2005 to tell a senior colleague the level he wanted Libor rates set at.

“‎It was done very openly and in a very normal way and gave the impression this was a regular, normal thing,” Contogoulas said on his first day in the witness box.

Contogoulas, 44, is one of five former Barclays bankers charged with conspiracy to defraud by manipulating Libor, the London interbank offered rate, a benchmark for rates on around $450 trillion of financial contracts worldwide.

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Ex-Barclays trader says pressured to lie about Libor setting

One of five former Barclays bankers on trial for the alleged rigging of a key Libor benchmark told a court on Friday he had lied about submitting rates for traders because he felt under pressure from his manager and the bank to “toe the line”.

Jonathan Mathew told the court that he had felt pressured by his manager at the time, Peter Johnson, who jurors heard this week had pleaded guilty in October 2014 to conspiring to manipulate Libor.

Johnson is the first man in Britain to plead guilty to charges related to Libor.

On Friday, Mathew told a London court that he had lied to investigators about taking requests from traders in making submissions to the benchmark, because he was worried he would lose his job and was scared about going up against his boss.

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Deutsche Bank Trader Fired Amid Libor Probe Settles Lawsuit

Deutsche Bank AG settled an employment lawsuit with a former trader who was fired at the request of U.S. regulators amid the Libor-rigging scandal.

Shivani Mathur was scheduled to begin her employment suit against Deutsche Bank Tuesday at a London employment tribunal. She had submitted a 70-page document spelling out claims she suffered sexual discrimination and was punished for blowing the whistle on corporate misconduct, according to court records.

“Mathur’s employment tribunal claim has been resolved,” a bank spokesman said by phone, without disclosing any details about the settlement. Mathur declined to comment.

Mathur was one of seven Deutsche Bank traders in London and Frankfurt pushed out by the New York banking regulator as part of a record $2.5 billion Libor-rigging settlement.

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