US Banking Watchdog Sues 16 Banks for Libor Manipulation
US financial watchdog, the FDIC, has filed a legal complaint against some of the world's largest banks as alleged players
US financial watchdog that supervises banking institutes has filed a legal complaint against some of the world’s largest banks. The FDIC has filed a ruling in the courts against 16 global players for rigging Libor rates.
The move comes on the back of investigations which saw American banks take the heat of market manipulation, with some going into recievership. Papers filed in the New York District court highlight 38 banks that have suffered on the back of interbank price rigging.
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The Libor scandal has brought shame to global institutes with several bankers involved facing severe penalties.
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In the latest filing the FDIC named and shamed: Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank AG, HSBC Holdings, JPMorgan Chase, the Royal Bank of Scotland Group and UBS.
Libor is used by banks to assess rates at which lending is done between institutions overnight. US banks use Libor to benchmark loans and mortgages hence the FDIC’s concerns.
The latest dilemma hitting the FX markets is believed to be as serious, if not more than the the Libor scandal, the UK’s central bank governor spoke about the seriousness to MPs earlier in the week.
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Lots of gloom and doom news lately about manipulation. But we do indeed want to know how deep this rabbit hole really goes…..or do we?
I think the banks will re-use the ‘too big to fail’ excuse and the majority of it will wash under the bridge. A tangled web indeed.
All of FX is OTC so I’m curious what these regulators are going to accomplish since the rates are not determined based on exchange based trading , hence OTC !!!
This is nothing but a witch hunt for penalties and publicity. Regulators need to realize that unless banks start making a lot of money there will be no lending and no jobs and the list goes on .
They should focus more on the larger and more regulated equity markets where I’m sure there are more people they can fine
Slap on the wrists maybe, but these tossers will never stop manipulating … Why? Because they can, and it's golly profitable.