Libor review: Wheatley says system must change

5corpio started a blog post Libor review: Wheatley says system must change
10 August 2012, 16:42

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Libor review: Wheatley says system must change

The current Libor rate-setting system is no longer a "viable option", a government-commissioned review said. It has proposed pegging the rate to actual market data, rather than subjective submissions from banks, and introducing formal regulation. Stronger sanctions to tackle abuse of the system are also included in the initial discussion paper, which aims to restore credibility. Barclays was found to have tried to rig Libor rates over several years. The review was established after the UK bank was found to have tried to manipulate Libor rates by putting in inaccurate submissions, resulting in a record £290m fine in June from both US and UK regulators. Several other banks in other countries are also under investigation.....Read more here: BBC News - Libor review: Wheatley says system must change
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- #1
  
  5corpio commented
  
  16 August 2012, 07:03
  
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  Seven banks, including HSBC and Royal Bank of Scotland, are to be questioned in the US for alleged manipulation of the Libor inter-bank lending rate. The other banks receiving subpoenas by the New York attorney general are Barclays, Citigroup, Deutsche Bank, JPMorgan and UBS. Last month, Barclays was fined £290m by UK and US regulators for rigging Libor. Some of the world's biggest banks have been embroiled in a number of scandals in recent months. Following the Barclays fine, US regulators said they were investigating a number of other banks for potential Libor rigging.A government-ordered review into Libor is currently being conducted by the managing director of the Financial Services Authority, Martin Wheatley.....Read more here: BBC News - Libor scandal: Seven banks summoned in US probe
- #2
  
  5corpio commented
  
  5 September 2012, 08:23
  
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  Barclays heads roll over Libor
  
  Two senior Barclays staff, a director and a top trader, have left the bank’s US offices in the wake of the Libor scandal that has shaken the bank to its foundations.
  
  Two senior Barclays staff, a director and a top trader, have left the bank’s US offices in the wake of the Libor scandal that has shaken the bank to its foundations. Barclays formally notified the US regulators that Ritankar ‘Ronti’ Pal was “discharged” on July 30 because the bank had a “loss of confidence” in him for failing “to properly supervise individuals on his team”, according to regulatory filings. Mr Pal, 42, was the head of US interest rates trading in New York. ....Read more here
- #3
  
  5corpio commented
  
  28 September 2012, 07:26
  
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  Bankers will be jailed for up to seven years and ordered to pay multi-million-pound fines if they ever again try to fiddle crucial interest rates, the City regulator will say today. Martin Wheatley, managing director of the Financial Services Authority, will read the riot act to City traders over their ‘shameful’, ‘disturbing’ and ‘unscrupulous’ manipulation of the Libor rate.Around £185trillion of financial transactions are based on Libor, dubbed ‘the most important figure in finance’, from business loans to the mortgages of hard-working families.....Read more here: Rogue bankers face jail and hefty fines under Libor reform plans
  
  Previous Blog Entry: Bankers found to have rigged Libor rate could face jail - allaboutFORUMS
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Libor review: Wheatley says system must change

Libor review: Wheatley says system must change