Leading banks likely to be drawn into Libor inquiry

This is a discussion on Leading banks likely to be drawn into Libor inquiry within the General Trading Chat forums, part of the Reception category; http://uk.finance.yahoo.com/news/Lea...Rtb3JlMTg3?x=0 Regulators in the UK, US and Japan will broaden their investigation into the banking sector following allegations UBS manipulated ...

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Old Mar 17, 2011, 10:33pm   #1
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Leading banks likely to be drawn into Libor inquiry

http://uk.finance.yahoo.com/news/Lea...Rtb3JlMTg3?x=0

Regulators in the UK, US and Japan will broaden their investigation into the banking sector following allegations UBS manipulated the Libor interbank lending rate.

Industry insiders say more than 15 banks have been contacted by regulators, with detailed investigations expected to begin into the ways leading financial institutions could have artificially fixed the leading benchmark for international borrowing.

On Tuesday, Swiss banking group UBS admitted it had "received subpoenas" from Wall Street regulator the Securities and Exchange Commission, the US Commodity Futures Trading Commission and the US Department of Justice in its annual report, published on Tuesday.

The allegations relate to London Interbank Offered Rate (Libor) submissions made by UBS to the British Bankers' Association (BBA), which sets the rate.

The bank added it has also received an order to provide information to Japan's Financial Supervisory Agency "concerning similar matters".

Senior banking sources told The Daily Telegraph several other major banks were likely to be drawn into the inquiry. One said: "If you ask whether the system is being manipulated you have to answer three things: do the banks have the means, motive and opportunity to do this? I would argue the answer to the first two is yes, which leaves you with opportunity and you have to make your own mind up about that."

Neither UBS nor the British Banking Association (BBA), which is responsible for setting the Libor rate, would comment any further on the story.

Other banks contacted by The Daily Telegraph refused to comment on whether they were under investigation. The only exception was West LB, the German Landesbank, which denied it was involved.
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Old Mar 17, 2011, 10:35pm   #2
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Re: Leading banks likely to be drawn into Libor inquiry

this has happened before, is it the same case or a new one?
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Old Mar 17, 2011, 10:39pm   #3
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Re: Leading banks likely to be drawn into Libor inquiry

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Originally Posted by DashRiprock View Post
this has happened before, is it the same case or a new one?
15th
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Old Mar 17, 2011, 10:41pm   #4
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Re: Leading banks likely to be drawn into Libor inquiry

and the US FED, along with others gave UBS gazillions in bailout money stolen from hard earned taxpayer's money. The politicians are the real crooks.

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Old Mar 17, 2011, 10:44pm   #5
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Re: Leading banks likely to be drawn into Libor inquiry

UBS didn't get any tarp money, it's swiss.
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Old Mar 17, 2011, 10:56pm   #6
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Re: Leading banks likely to be drawn into Libor inquiry

Quote:
Originally Posted by DashRiprock View Post
UBS didn't get any tarp money, it's swiss.
True.

The fed did not give TARP money, but made secret zero interest loans totaling $3.3 billion over 2 1/2 years. UBS was a large benefactor. In December congress forced the fed to show these transactions and list them on the balance sheet. In reality congress was upset because it was done without their approval, which they most likely would have given anyway, but the public outcry would have been a political mess.

Peter
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Old Mar 17, 2011, 11:19pm   #7
 
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Re: Leading banks likely to be drawn into Libor inquiry

UBS was bailed out by the SNB. I have no idea what "secret" loans the Fed made to UBS. That's a crazy idea.

As to the LIBOR probe, it's an interesting exercise, but, if I had to guess, quite a lot of it is political grandstanding.
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