Topic: Libor
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Five ways big banks' Libor scandal affects you
London, this year's host of the Olympics, is also home to a bank scandal that threatens to rock the financial world as much as the Games influence the world of sports. Here's why: Libor (London Interbank Offered Rate) is a global benchmark for interest rates that reaches deep into the international financial system. Allegations that banks rigged those rates means that everyone from mortgage-holders and indebted students to cities and mutual funds may have had their interest rates unnaturally altered. Already tainted by other scandals, banks are under investigation because of charges that they profited illegally from their rate-rigging scheme. The mess further taints big banks and puts more strain on the credibility of the global financial system. Here are five ways the Libor scandal could affect you:
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UBS to pay $1.5 billion in fines over LIBOR rate scandal
The Swiss bank agreed to the fine Wednesday, settling with US, British, and Swiss regulators. In the case, UBS employees tried to rig the London Interback Offered Rate, or LIBOR, using different currencies.
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Five ways big banks' Libor scandal affects you
London, this year's host of the Olympics, is also home to a bank scandal that threatens to rock the financial world as much as the Games influence the world of sports. Here's why: Libor (London Interbank Offered Rate) is a global benchmark for interest rates that reaches deep into the international financial system. Allegations that banks rigged those rates means that everyone from mortgage-holders and indebted students to cities and mutual funds may have had their interest rates unnaturally altered. Already tainted by other scandals, banks are under investigation because of charges that they profited illegally from their rate-rigging scheme. The mess further taints big banks and puts more strain on the credibility of the global financial system. Here are five ways the Libor scandal could affect you:
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The New Economy
Greed is (not) good. Here's a better capitalism.Profit should not be the sole goal of business. Profit should be the byproduct of business excellence.
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As Standard Chartered plunges, taint for London banks spreads
Standard Chartered loses a fifth of its value in early trading a day after allegations of money laundering for Iran. It's the latest of a long string of scandals for London banks.
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Latin America Monitor
Does oil giant Chevron want Chavez to win reelection in Venezuela?Chevron has been in Venezuela since the 1920s when politicians were heavier handed than Chavez. Now, Chevron in Venezuela may be too big to nationalize, writes a guest blogger.
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Briefing
Libor scandal: What is it and why you should careOne bank caught trying to rig an interest rate may be tip of an iceberg. With an estimated $300 trillion in loans or derivative contracts around the world pegged to the interest rate, the scandal is again shaking faith in major international banking centers like Wall Street and London City.
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HSBC money laundering: Bank vows fixes. Senators doubtful.
HSBC money laundering comes under the microscope in a Senate hearing. Bank officials promise to shut down operations in the Cayman Islands, tied to HSBC money laundering.
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The Daily Reckoning
A crisis veiled in public spectacleOver the course of three odd decades, billions of dollars were lent to people who shouldn’t have been allowed to borrow lunch money. And now, there are losses in the trillions. The real question is, will the market finally be allowed to correct itself?
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Senators push Bernanke: Was Fed asleep in the LIBOR rate scandal?
Fed Chairman Ben Bernanke was questioned by senators Tuesday about the central bank's role in the LIBOR rate-setting scandal. He said the Fed had pushed for reform of the rate setting process in 2008 when it became concerned about manipulation of the influential benchmark.
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LIBOR scandal: Will Feds target not just employees, but a whole bank?
If a bank reporting its lending rates has given intentionally inaccurate numbers, that could be a crime, say experts. Prosecutors have been poring over documents related to LIBOR for two years.
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The Monitor's View: Barclays Libor scandal: Is truth an easy casualty in the digital age?
Barclays bank was caught manipulating global interest rates, known as Libor, in an act of deception over the bank's financial soundness. Preventing such dishonesty needs more than regulation.
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Robert Reich
Scandal of scandals: Barclays corruption probe digs up new dirtWhen it comes to Wall Street, many of us suffer outrage fatigue and cynicism that nothing will ever be done to stop these abuses. The question is whether the unfolding Barclays scandal will provide enough energy to finally force a change.
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The Reformed Broker
Down the rabbit hole: The Barclays scandal growsThe scandal at Barclays continues to grow as emails dating back to 2005 attest to a pattern of greed and corrupt business practices. What is not well known is what the final cost could be to the world's financial institutions, and these costs could be enormous.
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Backchannels
Lies, damned lies, and LIBOR: Barclays, Diamond, and a devalued benchmarkThe story of how Barclays tried to rig an interest rate benchmark called LIBOR, which cost CEO Robert Diamond his job today, may seem obscure. But it's the latest evidence of bankers taking every inch regulators leave to them.
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Barclays scandal prompts furious public backlash in Britain
Barclays CEO Robert Diamond resigned today. As investigations of lending rate manipulation continue a government official says a 'culture that had flourished in the age of irresponsibility' must end.
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How Greek economic woes could help US consumers
Fears that Greece may default on its debt are spurring interest in US Treasury bonds, driving down interest rates on mortgages and auto loans – but not (alas) for credit card debt.
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Eurozone debt: Grave threat to US economy or imaginary boogeyman?
Under grimmest scenario, debt-burdened Greece, Ireland, Italy, and Spain can't pay what they owe to Eurozone banks, which then stumble, causing US banks to falter, too. But US banking system is stronger now, and regulators are more vigilant, say optimists.
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Stocks end mixed after choppy session
The market rallied late in the afternoon, with the Dow closing 14 points up
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The Simple Dollar
Minivans a good family-car buy?Minivans aren't cheap, but they may be worth it for your family (Question #4). Also in today's Reader's Mailbag: saving for school (#1), splitting mortgage payments (#6), and finding a credit union (#8).
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The Simple Dollar
Credit scores: Advice to a college studentCredit scores: If they're high enough, you can get a good credit card. Question No. 2 in this reader mailbag.
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The Adam Smith Institute Blog
Does LIBOR spike spell trouble for EU banks?Given all the political confusion and the massive financial deficits that many EU countries have piled up, renewed fears about the banking sector are no surprise.
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The New Economy
Greek debt crisis sparks sharp fall in US, Europe marketsFears that the Greek debt crisis will spread roiled global stock markets Tuesday. Major US and European indexes fell more than 2 percent.
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A scramble to unlock bank lending
US regulators are cranking out an array of options.
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Big lenders begin to find stable ground
Stronger financial institutions are purchasing weaker ones. Case in point: Bank of America has announced it will purchase Countrywide Financial.
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