The U.S. Justice Department is identifying both firms and individuals as prosecution candidates in the unfolding LIBOR scandal. On a related note, Deutsche Bank volunteers to be the First Canary, and help take down its former rate-fixing pals in exchange for a lighter punishment of its own. The Seychelles steps up to create a new exchange, evidently seeing fresh opportunity in globally-declining volumes and industry consolidation. The CFTC takes bold steps in the wake of the MF Global… that is, the PFG scandal, and moves to approve rules to help protect customer funds against yet another looting crisis.
Tag Archives: LIBOR
John Lothian Newsletter: Peregrine Details Plans For Liquidation; Banks’ Libor Costs May Hit $22Bn; Let Sellers Of The LME Beware John Lothian Newsletter,Newsletter
The trustee for exploded brokerage Peregrine Financial announces the liquidation plan for the company; along with that news, there are plenty more updates, developments and commentary on PFG in the newsletter. Continuing liability analysis of the LIBOR scandal suggests banks might pay out more than $20 billion in related settlements and fines. Not all is happiness and rainbows regarding the sale of the London Metal Exchange to HKEx; more than one industry participant expresses concern over the possibility that well-established and efficient transaction conduits could be negatively affected by a transfer of ownership.
John Lothian Newsletter: Fall of Peregrine’s Wasendorf Presaged in Christmas Toast; Canada’s TMX in Talks to Buy Direct Edge; LSE and Singapore set to cross-trade John Lothian Newsletter,Newsletter
TMX Group, in the middle of being acquired, is looking to buy Direct Edge. London Stock Exchange and Singapore Exchange create a preliminary agreement for cross-listing, possibly indicating closer ties between the exchanges. The CFTC may act on MFGlobal-prompted client-fund protection rules, now that PFGBest has lit another fire of need underneath that agency.
John Lothian Newsletter: SEC finalizes derivative definition rules; LME shareholders to vote on Hong Kong sale on July 25; Fed knew of Libor issue in 2007-08, proposed reforms John Lothian Newsletter,Newsletter
The SEC creates final versions of definitions to use to regulate various Dodd-Frank-covered products. London Metal Exchange has set a date this month to vote on whether to be acquired by HKEx. The ongoing LIBOR scandal investigation produces evidence suggesting that the US Federal Reserve knew as early as 2007 that something was fishy with the way rates were being set. In First Read today, get an update on the Peregrine/PFGBest situation, including comments from John Lothian asking some good initial questions about why pre-MF Global evidence of trouble did not prompt regulatory action. Also, make sure you take a…
John Lothian Newsletter: TSE bid for domestic rival on knife edge; JPMorgan Shuts Europe Money Market Funds on ECB Rate Cut; Barclays Sued by Investor Over Alleged Euribor Actions John Lothian Newsletter,Newsletter
The Tokyo-Osaka exchange merger continues to hang in the balance, as the recent regulatory approval is followed by shareholder demands. As European deposit rates go negative, JPMorgan Chase stops taking money market funds there, saying investors may not be able to make a profit. The first class-action lawsuit against Barclays has been filed. In First Read, John Lothian says another farewell (no, not to this newsletter) and hints at a soon-to-come hello.
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…
John Lothian Newsletter: Tokyo, Osaka bourses say their merger approved; Maple-TMX Group merger clear approval hurdles; NYSE Plan Angers Brokers John Lothian Newsletter,Newsletter
Good progress (for a change) made on a couple of exchange mergers. Tokyo and Osaka stock exchanges announce that they got a vote of no-interference from the regulator reviewing their merger plans; and TMX Group gets a not-red light to proceed with the Maple Group buyout as well. In the USA, NYSE Euronext’s plans to go head-to-head with dark pools generates hissing and grumbling from some brokers. You can read NYSE Euronext’s Duncan Niederauer’s point of view in First Read today; today’s newsletter also includes an extra LIBOR section to corral the latest news about this very much still-unfolding scandal.
John Lothian Newsletter: ISE files for second US options exchange; Barclays CEO Robert Diamond Resigns; Athens Seeks Improved Bailout Deal John Lothian Newsletter,Newsletter
Exchange ISE files paperwork with the SEC for approval to open a second options trading venue at the end of the year. Barclays’ Parade of Disgrace continues in the LIBOR rate-fixing scandal, with now ex-CEO Bob Diamond unceremoniously shown the sidewalk outside the front door; new investigations into other institutions and criminal charges suggest that the scandal may be gaining steam rather than wrapping up. Greece heads back to the eurozone government to ask for a better bailout deal, potentially more like the one Spain is expected to receive. Exchange volume stats are (mostly) in, with a raft of exchanges…
John Lothian Newsletter: Esma probes agencies’ views on banks; Fed official floats stress tests of money funds; Oslo Børs to cut opening hours John Lothian Newsletter,Newsletter
European regulator Esma takes a closer look at the three largest credit rating agencies, to see if those companies are sufficiently rigorous in their activity. An official in the Federal Reserve suggests expanding future bank stress tests to include sponsored mutual fund data. In a sign of the “reduced volume” times, the stock exchange in Oslo is cutting back its trading hours in an effort to increase trading volume in the remaining open hours.