LIBOR Scandal Fallout Has Started

Mr_Fingerz

LE
Book Reviewer
#1
From BBC Breaking News on Twitter: Marcus Agius resigning as chairman of British bank #Barclays, the BBC's @Peston says. Details soon

I suspect that there'll be more to follow and that Diamond will adopt the "It wasn't me, it was a big boy who ran away" defence when he's up before the Treasury Select Cttee.
 

Wordsmith

LE
Book Reviewer
#2
From BBC Breaking News on Twitter: Marcus Agius resigning as chairman of British bank #Barclays, the BBC's @Peston says. Details soon

I suspect that there'll be more to follow and that Diamond will adopt the "It wasn't me, it was a big boy who ran away" defence when he's up before the Treasury Select Cttee.
And speaking of Robert Peston.

BBC News - What did Bank of England say to Barclays about Libor?

Looks like Diamond will be claiming that he had an OK from the Bank of England to submit misleading LIBOR rates.

In making false submissions about their borrowing costs, managers at Barclays believed they were operating under an instruction from Paul Tucker, deputy governor of the Bank of England, I have learned. This belief was fostered after a telephone conversation in the autumn of 2008 between Mr Tucker and Bob Diamond, who at the time ran Barclays' investment bank, Barclays Capital, and is today chief executive of Barclays.

Mr Tucker did not issue this instruction. But he and Mr Diamond have different recollections of their conversation. So what Mr Diamond recalls about this telephone conversation may turn out to be the most explosive and important part of his testimony to MPs on the Treasury Select Committee, which will take place on Wednesday.

In finding Barclays guilty of attempting to manipulate the important Libor borrowing rate, the benchmark rate for bank-to-bank lending, the Financial Services Authority (FSA) made an elliptical reference to this conversation. The relevant passage from the FSA's judgement against Barclays talks of a "telephone conversation between a senior individual at Barclays and the Bank of England during which the external perceptions of Barclays' Libor submissions were discussed".

I have established that the conversation was between Mr Diamond and Mr Tucker, who is a leading candidate to succeed Sir Mervyn King as governor of the Bank of England. There is no contemporaneous minute or recording of the meeting, I am told. However Mr Diamond and Mr Tucker have different recollections of it, according to well-placed sources.
So Diamond went ahead and sanctioned misleading values of LIBOR being passed to the BofE on the basis of a conversation which no records exist. Anyone in their right minds would have asked for written confirmation from the BofE before doing so.

In addition, Barclays was one of the few banks not to ask for a bailout from the BofE when the Lehman credit crunch arrived. In doing so they could have reduced their borrowing costs because anyone looking at Barclay's would have known the BOfE stood behind it.

The aroma of fish grows stronger...

Wordsmith
 
#3
And speaking of Robert Peston.

BBC News - What did Bank of England say to Barclays about Libor?

Looks like Diamond will be claiming that he had an OK from the Bank of England to submit misleading LIBOR rates.



So Diamond went ahead and sanctioned misleading values of LIBOR being passed to the BofE on the basis of a conversation which no records exist. Anyone in their right minds would have asked for written confirmation from the BofE before doing so.

In addition, Barclays was one of the few banks not to ask for a bailout from the BofE when the Lehman credit crunch arrived. In doing so they could have reduced their borrowing costs because anyone looking at Barclay's would have known the BOfE stood behind it.

The aroma of fish grows stronger...

Wordsmith
It defies belief really. I note the Chairman wasn't even around when this was happening!
 
#4
Doesn't it just, but If I remember rightly Barclays went to UAE or was it Saudi to get a huge loan and the share holders were less than impressed. I doubt wether Barclays would have told lenders that they had the sanction of Bof E to manipulate the borrowing rate as they wouldn't have told anyone. No this is a case of if we go down , you go down-trouble is it could get abit stinky for Darling and Broon. Ooh would I not have like to be a fly on the wall in the treasury.
 

maninblack

LE
Book Reviewer
#6
If the various directors of Barclays have any sense they will negotiate with the UK authorities to expose all their foul little crimes and get a swift prosecution out of the way. 5 years in Ford open prison is a good deal better than what they will get when the FBI extradite them.
 
#7
And speaking of Robert Peston.

BBC News - What did Bank of England say to Barclays about Libor?

Looks like Diamond will be claiming that he had an OK from the Bank of England to submit misleading LIBOR rates.



So Diamond went ahead and sanctioned misleading values of LIBOR being passed to the BofE on the basis of a conversation which no records exist. Anyone in their right minds would have asked for written confirmation from the BofE before doing so.

In addition, Barclays was one of the few banks not to ask for a bailout from the BofE when the Lehman credit crunch arrived. In doing so they could have reduced their borrowing costs because anyone looking at Barclay's would have known the BOfE stood behind it.

The aroma of fish grows stronger...

Wordsmith
I feel that before we see the bottom of this, that aroma will turn out to be a shagg'n great trawler.
 
#8
If the various directors of Barclays have any sense they will negotiate with the UK authorities to expose all their foul little crimes and get a swift prosecution out of the way. 5 years in Ford open prison is a good deal better than what they will get when the FBI extradite them.
From what I read, that is what they have done. This is why Barclays is first. They did a deal with the global regulators and of course they/Tim Bond cited the problem regarding false USD LIBOR bids to the US regulators back in 2007/8.

I suspect criminal proceedings are underway to target the other banks.
 

Mr_Fingerz

LE
Book Reviewer
#9
Apparently the reason why the Barclays fine of £290M was so small, is because they have been naming names.

I see that four bodies at RBS were given the (not so) good news this morning that their cards would be waiting for them on Monday. I presume that London City Police will have some officers waiting to speak to them as they pick said cards up.
 
#10
Given that I along with just about everybody else is staggered, by the simple mindless responses from the banks 'fetch me the Bolly this one is broken'. Perhaps somebody could come out with a guide to the criminality and it's non banking equivellents?
So fiddling the Libor is cosher, thus short changing a customer in a pub is as well?
 
#11
From what I read, that is what they have done. This is why Barclays is first. They did a deal with the global regulators and of course they/Tim Bond cited the problem regarding false USD LIBOR bids to the US regulators back in 2007/8.

I suspect criminal proceedings are underway to target the other banks.
Is this the sort of deal which will see Brokleys staff immune from beng carted throu the City in a trumbull in handcuffs?
 
#12
Apparently the reason why the Barclays fine of £290M was so small, is because they have been naming names.

I see that four bodies at RBS were given the (not so) good news this morning that their cards would be waiting for them on Monday. I presume that London City Police will have some officers waiting to speak to them as they pick said cards up.
No sign of their manager also getting the shove?
 

Mr_Fingerz

LE
Book Reviewer
#13
Given that I along with just about everybody else is staggered, by the simple mindless responses from the banks 'fetch me the Bolly this one is broken'. Perhaps somebody could come out with a guide to the criminality and it's non banking equivellents?
So fiddling the Libor is cosher, thus short changing a customer in a pub is as well?
Do you mean something along the lines of:

Me insisting that a client has my insurance in case "something bad happens" is demanding money with menaces, whereas if Barclays or RBS, in the course of providing a loan insist that the "customer" purchases an insurance policy that is neither appropriate nor cost effective, they are guilty of nothing more than "sharp practice" at one extreme or "overzealous selling" at the other?
 
#14
BBC on-line news (sorry no links) Barclays Top Dog, Agius has been given the boot. This was on the cards, we will have to see if Tinshit (Diamond) gets the same order. If he does it will not be something that Barclays will want to do easily, as he is considered as one of the Top Guns in the city. Now shot down with Wrights Biplane.
 
#15
Do you mean something along the lines of:

Me insisting that a client has my insurance in case "something bad happens" is demanding money with menaces, whereas if Barclays or RBS, in the course of providing a loan insist that the "customer" purchases an insurance policy that is neither appropriate nor cost effective, they are guilty of nothing more than "sharp practice" at one extreme or "overzealous selling" at the other?
Or even lower down the scale, when Barclays were taking Direct Debits from my bank account to service somebody else debts, not once but on two separate occasions. When I pointed out the similarity of me holding a gun to the tellers and demanding £10, as being the same sort of action as Brokenlies. They got all uppity.
 

Wordsmith

LE
Book Reviewer
#17
None of this sprung up overnight.

A number of years ago, an investment banker went one inch over the line to get a commercial advantage and spent the next week crapping himself in case he got caught. He didn't, so after a another week he went over the line for an inch again - only this time it was a little easier. And the third time he did it, he was even more confident he was not going to get caught.

So he then went two inches over the line. Repeat ad infinitum...

There are more than enough examples of misdeeds by investment bankers to show the whole culture has become rotten over time. What was unthinkable 10 years ago has become routine now. And we now have a generation of senior bankers imbued with the "I don't give a fcuk about the regulations" ethos.

Wonderful.

Wordsmith
 
#18
There are more than enough examples of misdeeds by investment bankers to show the whole culture has become rotten over time. What was unthinkable 10 years ago has become routine now. And we now have a generation of senior bankers imbued with the "I don't give a fcuk about the regulations" ethos.
What else can you expect when not a single banker has been jailed in the UK since the crisis began? Nobody did anything illegal, nobody was charged with anything. A disgrace.
 
#19
Can only be a matter of time before the records come out that the government of the day were made aware of what had been going on.

I notice Ed Bollocks has been absent for a couple of days now...
 

Grumblegrunt

LE
Book Reviewer
#20
balls is still convinced that its the banks old boy network that is the problem when its just the opposite.

we apparently dont have the means to persecute for financial crimes - the yanks do though so maybe some fast track extradition can be arranged.
 

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