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Financial news updates from John Lothian News.

LIBOR Scandal News (7/5/12 AM) Standard

A roundup of the latest news on the LIBOR scandal. Lining Up Libor AlternativesBy KATY BURNE And MATT PHILLIPS – Dow JonesThe 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.http://jlne.ws/N0i0Ue Regulators on Libor Probe Said to Seek More TimeBy Joshua Gallu – BloombergBarclays 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…

MF Global Trustee Deal: Customers Get $130M from CME Group Standard

MF Global

MF Global trustee James Giddens struck a deal with the CME Group that recovered $130 million in customer funds from the exchange group. The agreement must be approved by a bankruptcy court and is not associated with the $1.6 billion in missing customer funds. In addition, CME Group will assign $16.5 million to cover future claims against them and will give $28.5 million to the judge overseeing the case for later assignment. Coverage: CME Group to return $130 million in MF Global funds – SunTimes MF Global Clients Get $130M From CME But $1.6B Is Still Missing – Forbes MF Global…

CFTC Orders Morgan Stanley & Co. LLC to Pay $5 Million Civil Monetary Penalty for Unlawful Noncompetitive Trades Standard

From the CFTC: Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges that, over an 18-month period, Morgan Stanley & Co. LLC (Morgan Stanley), a registered futures commission merchant (FCM), unlawfully executed, processed, and reported numerous off-exchange futures trades to the Chicago Mercantile Exchange (CME) and Chicago Board of Trade (CBOT) as exchanges for related positions (EFRPs). The CFTC order requires Morgan Stanley to pay a $5 million civil monetary penalty and to cease and desist from further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged. According…

Trustee for the Liquidation of MF Global Inc. Submits Report of Investigation and Recommendations Standard

MF Global

Link to the report: http://jlne.ws/NcOJYp (PDF) Press release from James W. Giddens, the Trustee for the liquidation of MF Global Inc.: June 4, 2012 – New York, New York – James W. Giddens, the Trustee for the liquidation of MF Global Inc., today filed a report on his independent investigation into the failure of the broker-dealer with the United States Bankruptcy Court for the Southern District of New York, the Honorable Martin Glenn, presiding. “As attempts were made to transform MF Global into a full-service global investment bank, management failed to add to its Treasury Department and technology infrastructure, which…

Agencies Sign Memorandum of Understanding on Supervisory Coordination Standard

Press release from the Board of Governors of the Federal Reserve System: Five federal supervisory agencies today released a Memorandum of Understanding (MOU) that clarifies how the agencies will coordinate their supervisory activities, consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). Section 1025 of the Dodd-Frank Act requires that the Consumer Financial Protection Bureau (CFPB) and the prudential regulators–the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency–coordinate important aspects of their supervision of insured depository…

CFTC Files a General Creditor Claim in the Liquidation of MF Global Standard

Press Release from the CFTC: Washington, DC – On June 1, 2012, the Commodity Futures Trading Commission (Commission) filed a general creditor claim in the liquidation of MF Global, Inc., No. 11-02790 (Bankr. S.D.N.Y.). The Commission took this action in relation to the Division of Enforcement’s ongoing investigation related to the failure of MF Global, Inc. If that investigation results in an enforcement action against MF Global, Inc., the Commission could pursue a restitution award for the benefit of commodity customers, which in turn could be the basis for a Commission claim as a general creditor against the MF Global,…

Trading Technologies Cuts About 100 From Staff Standard

Trading Technologies

By Jim Kharouf Trading Technologies (TT) cut about 100 engineers from its staff today. TT issued a statement this afternoon stating “As we’ve become more focused and efficient over the past few years, we made a difficult but necessary decision to lay off about 100 employees.” TT had no further comment on the move today but sources close to the firm said that the cuts had been in the works for some time now and are uniformly distributed across TT’s offices worldwide. The firm now numbers just under 500 employees, 75 percent of which are in the software engineering and…