This dwarfs by orders of magnitude any financial scam in the history of escândalo Forex. The Libor is an average interest rate calculated through submissions of interest rates by major banks across the world. The banks are supposed to submit the actual interest rates they are paying, or would expect to pay, for borrowing from other banks.
Because Libor is used in US derivatives markets, an attempt to manipulate Libor is an attempt to manipulate US derivatives markets, and thus a violation of American law. On 27 July 2012, the Financial Times published an article by a former trader which stated that Libor manipulation had been common since at least 1991. Significant reforms, in line with the Wheatley Review, came into effect in 2013 and a new administrator took over in early 2014. The UK controls Libor through laws made in the UK Parliament. As of August 2015, UBS trader Tom Hayes was the only person convicted in connection with the Libor scandal. In the UK, six bankers accused over Libor were cleared in early 2016. Hi Guys, We got a big position in 3m libor for the next 3 days.
Can we please keep the libor fixing at 5. 39 for the next few days. We do not want it to fix any higher than that. On 16 April 2008, The Wall Street Journal released an article, and later study, suggesting that some banks might have understated borrowing costs they reported for the Libor during the 2008 credit crunch that may have misled others about the financial position of these banks. A study by economists Connan Snider and Thomas Youle, in April 2010 corroborated the results of the earlier Wall Street Journal study, concluding that the Libor submissions by some member banks were being understated.
The New York Federal Reserve chose to take no action against them at that time. The documents show that in early 2008, a memo written by then New York Fed President Tim Geithner to Bank of England chief Mervyn King looked into ways to “fix” Libor. The Wall Street Journal reported in March 2011 that regulators were focusing on Bank of America Corp. UBS AG in their probe of Libor rate manipulation. A year later, it was reported in February 2012 that the US Department of Justice was conducting a criminal investigation into Libor abuse.
The Canadian Competition Bureau was reported on 15 July 2012 to also be carrying out an investigation into price fixing by five banks of the yen denominated Libor rates. Court documents filed indicated that the Competition Bureau had been pursuing the matter since at least January 2011. By 4 July 2012, the breadth of the scandal was evident and became the topic of analysis on news and financial programs that attempted to explain the importance of the scandal. 4 billion that state and local governments have already had to spend to unwind their positions exposed to rate manipulation. The United States Congress began investigating on 10 July 2012. Appearing before Parliament on 16 July, Jerry del Missier, a former senior Barclays executive, said that he had received instructions from Robert Diamond to lower rates after Diamond’s discussions with bank regulators.