Libor scandal
When Libor scandal (also LIBOR scandal ) it comes to fraudulent manipulation of the reference interest rate LIBOR and other interest rates (EURIBOR, TIBOR Japanese ) in the interbank market.
Background
The reference rates have a major impact on a variety of financial market transactions. By manipulating the reference interest rates, the banks involved have conferred advantages:
- Participants in the manipulation encounters a lower interest rate risk, outsider meets an additional problem caused by the manipulations risk.
- Self-directed changes in the reference interest rates may be similar exploited in insider trading by speculative activities.
- Private loans are often based on the reference rate for the beginning of the month, overpriced borrowers interest rates through periodic increase in the reference rate for the beginning of the month can therefore be taught.
History
In June 2012, years of manipulations were known by the Barclays Bank. The stated interest rate of the affected banks were not based, therefore, on their actual bank's internal values, but were invented. Meanwhile, the authorities suspect that in the U.S., Europe and Japan that the world might have been involved in the manipulation of up to 20 banks, since, among other things against the is determined on suspicion of fraud. Among the institutions involved may be listed on 12 July 2012, the Bank of America, Barclays, Mitsubishi UFJ, Citi, Credit Suisse, the German bank, HSBC, JP Morgan, Lloyds, Royal Bank of Scotland and UBS. The financial damage parts of the world economy could be grown by the Libor manipulation, analysts estimated at this time to 17.1 billion U.S. dollars.
Three banks agreed to comparisons: The British Barclays bank paid 470 million U.S. dollars ( 360 million euros ), the Royal Bank of Scotland (RBS ) paid 612 million U.S. dollars ( 455 million euros ), the Swiss UBS 1.2 billion euro repentance.
The British government and the UK's Financial FCA appointed a committee of experts to draw up conclusions from the fraud. On July 8, 2013, this committee, the London Stock Exchange, the responsibility for the Libor fixing decided in 2014 to withdraw and instead transferred the New York Stock Exchange NYSE Euro Next. NYSE Euro Next founded it in the UK, a subsidiary company, which - like the previously responsible for the Libor London's major banks as well - is controlled by the British Banking Supervision.
The damage that could arise at the end of the financial sector by the Libor scandal - including through collective action by property owners in the United States who find themselves damaged by excessive real estate lending rates on Libor - based - is of professionals to nearly nine billion U.S. dollar appreciated.
The main suspect in the Libor scandal Tom Hayes ( former employee at UBS and Citigroup ) was released in October 2013, a court in London and said from there. According to court he has collaborated with his alleged manipulations with 22 people. Hayes considered the key figure in the Libor scandal; He is charged with eight cases in the years 2006 to 2010. The trial against him is expected (as of October 2013) did not begin before 2015.
Condemnation
On December 4, 2013 it was announced that the European Commission has imposed a record fine of 1.7 billion euros against several major banks because of the manipulation of interest rates. Affected the German Bank ( 725 million euro fine ), the French Société Générale (almost 446 million euros ), the Royal Bank of Scotland ( 391 million euros ), the US-based financial institutions Citigroup ( 80 million euros ), JP Morgan Chase ( 70 million euros ) and RP Martin ( 250,000 euros ). Partially cleared this one her fault, after which the fine was reduced by ten percent. The banks Barclays and UBS did not receive any fines, as they have contributed to clarifying the manipulations.