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£290 mill in fines, what do bankers have to do go to prison?

£290 mill in fines, what do bankers have to do go to prison?

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Adrian W

Original Poster:

10,464 posts

136 months

Wednesday 27th June 2012
quotequote all
How much did they actually make out of it?

http://www.bbc.co.uk/news/business-18612279

Edited by Adrian W on Wednesday 27th June 15:43

trickywoo

5,725 posts

138 months

Wednesday 27th June 2012
quotequote all
Peston - "It's quite hard to think of behaviour by a bank as shocking as this: not telling the truth about what it is costing you to borrow, that then becomes a benchmark for pricing other deals."

Sums it up quite nicely. I really think a 10 year plus prison sentance is justified for behaviour like this and its probably the only deterent as they have almost certainly made more out of the scam than the fines amount to.

Soovy

35,122 posts

179 months

Wednesday 27th June 2012
quotequote all
I would imagine that prison sentences will be handed out shortly.

Varley will not now be Governor of the Bank of England, I wouldn't have thought.

10 Pence Short

32,880 posts

125 months

Wednesday 27th June 2012
quotequote all
Unfortunate name of the day #32:

Barclays Chief Executive of Corporate and Investment Banking, Mr. Rich Ricci.

Use Psychology

11,327 posts

100 months

Wednesday 27th June 2012
quotequote all
they's go to prison if anyone caught them EATING BABIES.

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Digga

18,410 posts

191 months

Wednesday 27th June 2012
quotequote all
Question I was pondering about this manipulation of Libor; suppose 'a big corporation' that signed a Libor-based deal felt it had lost out due to this (fraudulent?) activity, what's the liability Barclays face?

fido

12,010 posts

163 months

Wednesday 27th June 2012
quotequote all
Soovy said:
I would imagine that prison sentences will be handed out shortly.

Varley will not now be Governor of the Bank of England, I wouldn't have thought.
Probably just the traders/managers involved. It's a bit of dilemma in the sense that their [submitters] job is to 'fix' the price. Of course the collusion bit is the serious offence. And PR-wise it's a disaster.

http://www.zerohedge.com/news/shocking-details-bar...

iii. On Monday, 13 March 2006, the following email exchange took place:

Trader C: “The big day [has] arrived… My NYK are screaming at me about an unchanged 3m libor. As always, any help wd be greatly appreciated. What do you think you’ll go for 3m?”

Submitter: “I am going 90 altho 91 is what I should be posting”.

Trader C: “[…] when I retire and write a book about this business your name will be written in golden letters […]”.

Submitter: “I would prefer this [to] not be in any book!”

laugh

Edited by fido on Wednesday 27th June 16:45

Apache

39,690 posts

192 months

Wednesday 27th June 2012
quotequote all
Use Psychology said:
they's go to prison if anyone caught them EATING BABIES.
eh?

Use Psychology

11,327 posts

100 months

Wednesday 27th June 2012
quotequote all
sorry, just imagining newspaper headlines in keeping with the current popular opinion of bankers.

the debate is hindered by the inability of most people to tell the difference between bankers (people who work for banks, probably quite reasonable, normal and nice people) and banks (fked up organisations).

ukwill

7,958 posts

115 months

Wednesday 27th June 2012
quotequote all
10 Pence Short said:
Unfortunate name of the day #32:

Barclays Chief Executive of Corporate and Investment Banking, Mr. Rich Ricci.
Saw that and thought the same hehe

Adrian W

Original Poster:

10,464 posts

136 months

Wednesday 27th June 2012
quotequote all
Use Psychology said:
sorry, just imagining newspaper headlines in keeping with the current popular opinion of bankers.

the debate is hindered by the inability of most people to tell the difference between bankers (people who work for banks, probably quite reasonable, normal and nice people) and banks (fked up organisations).
I'm having a little trouble with this, people manipulated the rates not organisations, however it does seem that people are immune from any consequences from their direct actions, in any other industry arrests would have been made

DickHerpes

900 posts

67 months

Wednesday 27th June 2012
quotequote all
Rape the Queen.

ellroy

3,954 posts

133 months

Wednesday 27th June 2012
quotequote all
Adrian W said:
I'm having a little trouble with this, people manipulated the rates not organisations, however it does seem that people are immune from any consequences from their direct actions, in any other industry arrests would have been made
Not that immune. Most are no longer employed, and those that are, only due to ongoing investigations, are now in the midst of a rather large arse feeling.

On top of that I would not be surprised if legal proceedings were to soon follow on an individual basis from the regulators.

ukwill

7,958 posts

115 months

Wednesday 27th June 2012
quotequote all
DickHerpes said:
Rape the Queen.
confused

scenario8

4,407 posts

87 months

Wednesday 27th June 2012
quotequote all
ukwill said:
DickHerpes said:
Rape the Queen.
confused
I suspect it was his (DickHerpes') answer to the OP's question.

Use Psychology

11,327 posts

100 months

Wednesday 27th June 2012
quotequote all
scenario8 said:
ukwill said:
DickHerpes said:
Rape the Queen.
confused
I suspect it was his (DickHerpes') answer to the OP's question.
aww crap, I was all ready to carry out his instruction.

ukwill

7,958 posts

115 months

Wednesday 27th June 2012
quotequote all
scenario8 said:
I suspect it was his (DickHerpes') answer to the OP's question.
Ah! I thought it was tourettes or something.

VinceFox

20,190 posts

80 months

Wednesday 27th June 2012
quotequote all
Can someone give me a potted down "newsround" version of this?

johnfm

12,693 posts

158 months

Wednesday 27th June 2012
quotequote all
VinceFox said:
Can someone give me a potted down "newsround" version of this?
Libor and Euribor are set buy asking a bunch of banks "how much would you pay for an interbank loan at 11am today?" The 'setters' answer this Q.


Some of the banks' business (revenues from derivaives, swaps etc) may more profitable depending on Libor.

So some traders at Barclays would ask the team of 'setters' to set the quote lower than the real value because it was advantageous for their trades.

Basically, artificially setting Libor in collusion (it seems ) with other banks.

It is naughty.

ukwill

7,958 posts

115 months

Wednesday 27th June 2012
quotequote all
VinceFox said:
Can someone give me a potted down "newsround" version of this?
bank tried to manipulate benchmark reference rate. got found out. heap big fine.