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Posts Tagged ‘Barclays Libor Scandal’

Barclays Libor Scandal: What is Bob Diamond Hiding?

Posted by Larry Doyle on January 25th, 2013 7:25 AM |

To think that scandalous activity of the size and scope involved in the rigging of Libor would be confined to a mere handful of traders and brokers is so ridiculous as to be laughable.

Yet, to this point, every institution connected to this racket would try to have us believe just that. Well, we can disavow that attempt to minimize the fallout of this manipulation at one bank. Which one is that?  (more…)

Libor Scandal: “Biggest Financial Fraud of All Time”

Posted by Larry Doyle on December 13th, 2012 2:00 PM |

With news leaking that Union Bank of Switzerland is poised to pay a $1 billion fine for its involvement in the manipulation of Libor, we once again are led to the conclusion that, for those involved in running the major global financial institutions, “CRIME PAYS.”

It is insulting to those who have even an ounce of decency in their body to think that institutions such as Barclays, UBS, and certainly many more can engage in the “biggest financial fraud of all time” and simply write a check for their complicity.

The “biggest financial fraud of all time,” LD?  Yes, I have defined this price rigging racket in just such a fashion many times. Those are not merely my words today. Who else joins me and echoes those sentiments?  (more…)

Barclays Libor Scandal: The Complicit Regulators

Posted by Larry Doyle on July 17th, 2012 12:40 PM |

Today’s Wall Street Journal lead editorial, New York Fed to Barclays: ‘Mm hmm’, concludes,

. . . if this is really the epic deceit and crime we are now reading about, then either new evidence needs to come to light, or the regulators who smiled and nodded and “Okayed” and “Mm hmmed” through the panic years are complicit with the banks now in the dock. They had ample opportunity to shut down this behavior, but nothing released by the New York Fed or the Bank of England suggests much more than a raised eyebrow at the time.

I am highly confident that there is plenty of supportive evidence of deceit and conspiratorial activity in the many thousands of e-mails and communications which officials have indicated they already hold. That said, I am also confident — and let’s not discount for even a second — that the regulators were complicit with the banks now in the dock. Why so confident?  (more…)

Barclays Libor Scandal: Holding Regulators to Account

Posted by Larry Doyle on July 14th, 2012 11:15 AM |

Oh what a tangled web they weave.

With the Libor scandal rocking Barclays Bank and ricocheting throughout the British banking system, we now begin to see the defenses go up on this side of the pond.

Recently released reports indicate that then New York Fed President and current U.S. Treasury Secretary Timothy Geithner made recommendations to British authorities for reforming the process used to set Libor. Is that right?

My ‘sense on cents’ would categorize those reports and that recommendation under the heading of ‘the best defense is a good offense.’

How is it that a Barclays employee could have reported in early 2008 to the New York Fed that Libor was being manipulated, yet the rigging continued into 2009? (more…)

Barclays Libor Scandal: “Diamond Lied”

Posted by Larry Doyle on July 11th, 2012 7:31 AM |

I hope the crowd on Capitol Hill is tuned in very closely to ongoing developments in the Barclays Libor scandal. The lightweights who allow the likes of Jamie Dimon to come and go with nary a glove being put upon him could learn more than a few lessons from members of Parliament engaged in undressing former Barclays CEO Bob Diamond.

What did we learn yesterday?

“Diamond lied to the committee,” David Ruffley, a committee member from the U.K.’s ruling Conservative Party, said at yesterday’s hearing.

Not leaving much to interpretation there. Perhaps the designation of Lie-more scandal is truly appropriate. (more…)

Barclays Libor Scandal: Who’s Really to Blame?

Posted by Larry Doyle on July 10th, 2012 8:10 AM |

The London Interbank Overnight Rate, aka Libor, is the referenced benchmark rate for only some multiple hundreds of trillions of dollars worth of securities and contracts. As such, the rate is of enormous importance to the markets and global economy. I personally recall beginning almost every day as a trader on Wall Street by inquiring of an individual on the finance desk, “Where’s Libor?”

With the manipulation of this rate rocking the markets, everybody wants to know who’s to blame.  There is certainly plenty of blame to go around.

If we were to listen to Bob Diamond, former CEO of Barclays, we would be inclined to believe that the blame in that organization rested merely within a very small group of individuals. How convenient. Do you think the CEOs of other banks would also like to ring fence this issue to a small group of expendable individuals on selected trading desks? No doubt.  (more…)

Barclays “Lie-More” Scandal: Moral Bankruptcy

Posted by Larry Doyle on July 9th, 2012 11:36 AM |

The scandal centering on the rigging of Libor has the potential to rock the entire financial industry like no other scandal in our lifetime. While I have witnessed some industry insiders and others on the periphery attempt to downplay the impact of this scandal, they are mistaken in their analysis.

I would love to be privy to the conversations currently ongoing between individuals at the Fed, Treasury, Department of Justice, the CFTC, SEC, FINRA and their counterparts at the Bank of England, the FSA, other central banks, and regulatory authorities. While I have no doubt that selected financial fiascoes have been conveniently kept under the rug, I do not think there is a rug large enough to cover up this mother-of-all-scandals.

As this scandal continues to unfold, I think it may very well have a significant negative impact on the overall equity markets. Why? As investors hear and learn more about this scandal, they will be inclined to sell the market as a vote of no confidence and no trust in the overall system.

For added flavor I highly recommend these two recently released video clips. The first runs just over 9 minutes and is especially hard-hitting. The latter, not quite 7 minutes, addresses the magnitude of this scandal. (more…)

Barclays Libor Scandal: When Did Manipulation Start?

Posted by Larry Doyle on July 4th, 2012 9:52 AM |

Discretion would typically dictate my writing about our nation’s declaration of independence today.

I will address that in short order, but the ongoing scandal surrounding the Libor price-fixing is not taking a holiday today. All eyes and ears in the UK are focused on the parliamentary testimony of recently deposed Barclays CEO Bob Diamond.

Diamond and his former lieutenants at Barclays have already indicated that their defense will zero in on the Bank of England and specifically the BOE’s Paul Tucker.  (more…)

Barclays Libor Scandal: Reports Regulators Knew; Time for Independent Investigation and Eliot Spitzer

Posted by Larry Doyle on July 3rd, 2012 11:06 AM |

When the proverbial “you know what” has hit the fan on Wall Street over the last few years, the defense of those occupying executive offices has consistently been, “the regulators were all over the firm and did nothing.”

With the industry in full defense mode over the fallout from the Libor price-fixing scandal, we catch a strong and overpowering sense of this stench filtering into the public domain once again. Bloomberg highlights as much in a short must-view video clip, Bad Bankers May Face Criminal Charges,

“Fraud is a crime in ordinary businesses, why shouldn’t it be so in banking?”  (more…)

Barclays Libor Scandal: How Big Will This Get?

Posted by Larry Doyle on July 3rd, 2012 7:29 AM |

The real tragedy of the scandal is the apparent lack of ethics or self-restraint among the people involved. Following billions of dollars of trading losses at JPMorgan Chase & Co.’s out-of-control London unit, the latest installment of big-bank follies offers yet more proof that the industry shouldn’t be trusted to regulate itself.

The earthquake that rocked Wall Street and the global financial markets in 2008 continues to reverberate today. Just ask Bob Diamond, CEO of Barclays . . . or I should say, former CEO of Barclays.

Diamond, the once high-flying American banker was dethroned overnight as the chief executive of the UK-based bank as public pressure and outrage grow over the current Libor price-fixing scandal. Do not think for a second that the CEOs of other large global banks are not sufficiently concerned of their own standing this morning. As well they should be. (more…)

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