A roundup of the latest news on the LIBOR scandal.
Lining Up Libor Alternatives
By KATY BURNE And MATT PHILLIPS – Dow Jones
The hunt for a credible replacement for Libor—long the most accepted market measure of short-term interest-rate moves—is heating up. Banks are testing alternatives to the London interbank offered rate, which is coming under increased scrutiny after regulators accused banks of manipulating the rate.
Regulators on Libor Probe Said to Seek More Time
By Joshua Gallu – Bloomberg
Barclays Plc (BARC)’s settlement of about $451 million with U.S. and U.K. regulators last week offered the first glimpse of what banks may have to pay to resolve a global probe of interest-rate manipulation. The question now is who’s next.
Diamond’s Exit Shows Libor Only What Each Bank Says It Is
The resignation of Barclays Plc (BARC) Chief Executive Officer Robert Diamond for the firm’s role in rigging the London interbank offered rate underscores the disconnect between the market’s perception of bank borrowing costs and the benchmark for $360 trillion of global securities.
King Succession Race for BOE Roiled as Libor Furor Rages
Chancellor of the Exchequer George Osborne’s hunt for the next Bank of England governor got tougher as the Libor-rigging scandal cast a shadow over potential contenders for the job, including the top internal candidate.
BOE’s Tucker Requests Hearing at U.K. Libor Probe
Bank of England Deputy Governor Paul Tucker asked for a hearing with lawmakers to give his version of events over a telephone call with former Barclays Plc (BARC)’s chief Robert Diamond as the Libor furor intensifies.
Barclays Scandal Bad News For Investor Confidence
D.M. Levine – Huffington Post
The ballooning interest rate manipulation scandal at Barclays, coupled with stock market instability, is likely to fuel fresh doubts about the integrity of the stock market, insiders said.
Banks Ask N.Y. Judge to Throw Out Libor Antritust Suits
More than a dozen banks including Citigroup Inc. and Bank of America Corp. asked a U.S. judge to dismiss a group of lawsuits in which they are accused of trying to manipulate the London interbank offered rate.
Diamond Says Barclays Penalized for Being First Fined Over Libor
Robert Diamond, who quit yesterday as chief executive officer of Barclays Plc (BARC), said a backlash that has led to the resignation of senior managers and erased $5 billion from the bank’s market value is a consequence of the lender being the first sanctioned for rigging interest rates.
Diamond Exit Raises Speculation of Investment-Bank Split
The departure of Diamond may presage a reorganization of Barclays after regulators in the U.K. and the U.S. pointed to the need for change at the company. The interest rate debacle is intensifying political pressure in the U.K. to build higher walls between banks’ consumer lending and investment-banking divisions to protect savers and taxpayers.
Labour’s Balls Denies That He Pressured Barclays on Libor
U.K. opposition Labour Party Treasury spokesman Ed Balls rejected Conservatives’ suggestions that he steered Barclays Plc (BARC) toward Libor fixing in 2008.
Diamond Would Be Catch for Investment, Private Equity
If Robert Diamond can’t recover in banking after resigning as Barclays Plc (BARC)’s chief executive officer amid the firm’s record regulatory fines, he would still be a sought-after prospect in another field: investment funds.
Barclays sees more disciplinary action for traders
Reuters via Yahoo! News
Barclays Plc said disciplinary action loomed for traders at the bank after an interest rate-rigging scandal that cost its boss his job, according to a document prepared for a parliamentary hearing this week.
Bank of England in the spotlight over ‘nod and wink’ to Libor rigging
The Bank of England was thrust back into the centre of the Libor scandal yesterday after it was accused of giving Barclays a “nod and a wink” to rig interest rates.
[Video] Osborne, Lecocq, Bove, Magnus Own Words on Diamond
U.K. Chancellor of the Exchequer George Osborne, Deutsche Bank Private Wealth Management Chief Investment Officer Kevin Lecocq, Rochdale Securities analyst Richard Bove and UBS AG senior economic adviser George Magnus discuss Robert Diamond’s resignation as Chief Executive Officer of Barclays Plc.