The U.K.'s Big Guns Arrive for LIBOR Investigation Party (BCS) (JPM) (C)
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If you're a bank and screwing with LIBOR for corporate gain, you're going to be in trouble. Serious trouble.
Following recent news surrounding Barclays (NYSE: BCS) and its efforts to manipulate LIBOR, two key news bits are taking place today:
Though bank officials brought issues with LIBOR to the FSA's attention as early as 2007, it was prompting by U.S. officials which caused the agency to undertake a formal investigation.
The WSJ reported today that one Barclays exec., Jerry del Missier, instructed subordinates to submit inaccurate LIBOR data, but the FSA not only cleared him of wrongdoing, but also blessed his recent promotion to COO of the bank. Del Missier is no longer with Barclays, following the house cleaning over the last week which saw the departure of its Chairman Mark Agius and CEO Bob Diamond.
Following the financial meltdown in 2008, the FSA is being "dismantled" due to its hands-off approach to the fiasco. In addition, one spokesman for the unit said day-to-day monitoring of LIBOR was done by the British Bankers' Association and out of FSA's legal purview.
In a brief statement issued Friday, the SFO said Director David Green would formally accept the LIBOR matter for investigation. The SFO noted that banks have a one-month head start before the agency decided whether it will press formal charges or not.
Along with Barclays, traders might be keeping an eye on how the situation plays out for banks like JPMorgan (NYSE: JPM), Citigroup (NYSE: C), and Bank of America (NYSE: BAC).
Banks are all in negative territory Friday.
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Following recent news surrounding Barclays (NYSE: BCS) and its efforts to manipulate LIBOR, two key news bits are taking place today:
- The U.K.'s Financial Services Authority (FSA) is coming under scrutiny; and
- The U.K.'s Serious Fraud Office (SFO) is about to do some scrutinizing of its own.
Though bank officials brought issues with LIBOR to the FSA's attention as early as 2007, it was prompting by U.S. officials which caused the agency to undertake a formal investigation.
The WSJ reported today that one Barclays exec., Jerry del Missier, instructed subordinates to submit inaccurate LIBOR data, but the FSA not only cleared him of wrongdoing, but also blessed his recent promotion to COO of the bank. Del Missier is no longer with Barclays, following the house cleaning over the last week which saw the departure of its Chairman Mark Agius and CEO Bob Diamond.
Following the financial meltdown in 2008, the FSA is being "dismantled" due to its hands-off approach to the fiasco. In addition, one spokesman for the unit said day-to-day monitoring of LIBOR was done by the British Bankers' Association and out of FSA's legal purview.
In a brief statement issued Friday, the SFO said Director David Green would formally accept the LIBOR matter for investigation. The SFO noted that banks have a one-month head start before the agency decided whether it will press formal charges or not.
Along with Barclays, traders might be keeping an eye on how the situation plays out for banks like JPMorgan (NYSE: JPM), Citigroup (NYSE: C), and Bank of America (NYSE: BAC).
Banks are all in negative territory Friday.
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