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Twelve Banks Worldwide Sued For Manipulating Libor

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http://uk.reuters.com/article/2011/04/19/uk-libor-lawsuit-idUKTRE73I40T20110419

A European asset manager has sued one dozen U.S., European and Japanese banks, accusing them of conspiring to manipulate Libor, a benchmark used to set interest rates on hundreds of trillions of dollars of securities.

Vienna-based FTC Capital GmbH and two funds it operates in Luxembourg and Gibraltar accused the banks of conspiring to artificially depress Libor, and limit trade in Libor-based derivatives from 2006 to 2009.

The defendant banks include Bank of America Corp, Barclays Plc, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase & Co, Lloyds Banking Group Plc, Norinchukin Bank, Royal Bank of Scotland Group Plc, UBS AG and WestLB AG.

Libor, whose full name is the London Interbank Offered Rate, is a measure for rates that banks charge each other, and is used worldwide as a short-term rate benchmark.

About $350 trillion (214.59 trillion pounds) of derivatives and other financial products are based on Libor. Small changes in the rate can have large impacts on the amounts of interest that can be charged.

FTC said the 12 banks colluded to suppress Libor to make them appear healthier than they were, and take advantage of trading opportunities not available to outside investors.

However taking this to it's logical conclusion you would ultimately have to start suing the central banks.....

It will be interesting to see what happens here, if the banks start to lose court cases the sub prime losses will look insignificant. Still I'm sure the taxpayer will be willing to pick up the losses once again.

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http://uk.reuters.com/article/2011/04/19/uk-libor-lawsuit-idUKTRE73I40T20110419

However taking this to it's logical conclusion you would ultimately have to start suing the central banks.....

It will be interesting to see what happens here, if the banks start to lose court cases the sub prime losses will look insignificant. Still I'm sure the taxpayer will be willing to pick up the losses once again.

we have to take this with a rather liberal application of salt.

there have been quite a few instances where the whistle of foul play has been blown(with the added incentive of impunity from prosecution for the whistleblower)

in several branches.

one of which is finance,the othe being crooked practice in air travel cartels.

the whistleblowers in ALL cases have been german(which begs the question.....was this a reverse-psychology tactic by the germans to create the conditions in the first place?)...knowing full well that to state the obvious...which was artificially created by them (by proxy via blair+cohorts)in the first place,would gain them market share.

oh dear!!!...oh what a tangled web we weave.......

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<br />we have to take this with a rather liberal application of salt.<br />there have been quite a few instances where the whistle of foul play has been blown(with the added incentive of impunity from prosecution for the whistleblower)<br />in several branches.<br /><br />one of which is finance,the othe being crooked practice in air travel cartels.<br /><br />the whistleblowers in ALL cases have been german(which begs the question.....was this a reverse-psychology tactic by the germans to create the conditions in the first place?)...knowing full well that to state the obvious...which was artificially created by them (by proxy via blair+cohorts)in the first place,would gain them market share.<br /><br /><br /><br />oh dear!!!...oh what a tangled web we weave.......

"The Lacemaker"

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

"reverse-psychology" tactic by the germans"

Persecuted Jews on one hand (the expendible proles/little jewish people) but look who else is 'secretly' funding the Wars!!

(Great camouflage but macabre (macs=scam) way they make their Satanic gains)

Rothschild family belongs to a race of (Germanic/FRANKish area) Jews called the AshKE-Nazi

Rothschilds financed/provided materials for second World war on both sides

- one side known(ken) as (fascinatingly) "The Nazis"

Other Ashke-nazi Jews were

"Anne FRANK"

Mr EIN-Stein (means "A Stone")

- whose names are used to 'flag' for the Rothschild 'tribe'

"Jews are a subset of Israelites, they were one of twelve tribes. It appears today that Israelites are broadly identified as Jews, which is not accurate. It also appears that the

Scythians and the Goths

have genetic connections to the ten tribes of the Northern Kingdom, and many were either taken to, or migrated into the Parthian Empire."

Edited by erranta

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A European asset manager has sued one dozen U.S., European and Japanese banks, accusing them of conspiring to manipulate Libor, a benchmark used to set interest rates on hundreds of trillions of dollars of securities.

Vienna-based FTC Capital GmbH and two funds it operates in Luxembourg and Gibraltar accused the banks of conspiring to artificially depress Libor, and limit trade in Libor-based derivatives from 2006 to 2009.

The defendant banks include Bank of America Corp, Barclays Plc, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase & Co, Lloyds Banking Group Plc, Norinchukin Bank, Royal Bank of Scotland Group Plc, UBS AG and WestLB AG.

Libor, whose full name is the London Interbank Offered Rate, is a measure for rates that banks charge each other, and is used worldwide as a short-term rate benchmark.

About $350 trillion (214.59 trillion pounds) of derivatives and other financial products are based on Libor. Small changes in the rate can have large impacts on the amounts of interest that can be charged.

FTC said the 12 banks colluded to suppress Libor to make them appear healthier than they were, and take advantage of trading opportunities not available to outside investors.

I am getting used to hearing about hundreds of billions and the occaisional trillion, but when numbers like this come up i find them truly staggering, (maybe I just need to get used to them and then it wont matter, just like ever inflating house prices, I just need to get used to it).

Surely if something goes wrong in this marketplace the effects will be enormous? Is this simply an example of severe over leveraging to extract ever larger and larger profits based on very little?

Can someone who has a good understanding of what these "products" are, explain in a simple way to a non banking person what the risks and benefits are? or am I missing the point, do the other financial products include pensions, savings etc?

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The plaintiffs have a point.

Posted Libors used to settle the legs of some derivatives were massively different to the rates at which banks borrowed during the peak of the credit crunch.

The complaint will be relatively easy to prove by looking at actual, open market borrowing and lending transactions by each bank for 1,3 and 6 month terms between say 10 am and noon every day and comparing them to the Libor rates that the same bank posted for each term.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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