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View Full Version : At it again! 'Systematic dishonesty' at Barclays



Qtec
06-28-2012, 02:25 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The former chief executive of Barclays Martin Taylor has told the BBC that Barclays' actions amount to <span style='font-size: 17pt'>"systematic dishonesty".</span>

Barclays was fined £290m ($450m) for trying to manipulate interest rates at which banks lend to each other.

Martin Taylor, who was chief executive, of the bank from 1994 to 1998 said that Barclays' deception looks like a deliberate strategy as it had been going on for years. </div></div>

What a surprise!



<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">'Accepted culture'

The fine imposed on Barclays is part of an international investigation into the setting of interbank rates between 2005 and 2009.

Each day the British Bankers' Association (BBA) and the European Banking Association publish the the Libor and Euribor rates by taking an average of the estimated rates submitted to them by leading banks.

Between 2005 and 2008, the Barclays staff who submitted estimates of their own interbank lending rates were frequently lobbied by its derivatives traders to put in figures which would benefit their trading positions, in order to produce a profit for the bank.

And between 2007 and 2009, during the height of the banking crisis, <u>the staff put in artificially low figures, to avoid the suspicion that Barclays was under financial stress and thus having to borrow at noticeably higher rates than its competitors.</u>


The FSA pointed out that Barclays traders were quite open about their routine attempts to lobby their colleagues who submitted the bank's estimate of its borrowing costs to the BBA.

It was particularly concerned because it appeared to be "accepted culture" among some staff.

"Requests to Barclays' submitters were made verbally and a large amount of email and instant message evidence consisting of derivatives traders' requests also exists," the FSA said.

<span style='font-size: 17pt'>In one instance, a trader recounted a conversation in which he had "begged" the submitter to put in a lower Libor figure.

"I'm like, dude, you're killing us," he said. His manager replied, "just tell him to... put it low".

In turn, the staff submitting the data would respond to the traders' requests.

"For you…anything," said one. "Done… for you big boy," said another.

And: "I owe you big time... I'm opening a bottle of Bollinger." </div></div> </span> link (http://www.bbc.co.uk/news/business-18622264)

Free market.........yeah right. Once again, Wall St steals from the whole nation and gets away with it.
Q

LWW
06-28-2012, 04:23 AM
It's a shame you can't comprehend what the term "FREE MARKET" actually means.

Gayle in MD
06-28-2012, 07:37 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> Free market.........yeah right. Once again, Wall St steals from the whole nation and gets away with it.
Q

</div></div>

A disgrace that these pigs aren't in jail!

Additionally, their "fortunes" should be liquidated, their possessions taken back by the courts, and used to pay for all of the global debts they caused.

Every CEO of every bank, or financial institution, took part in this crooked scam, laughably called The Free Market should be forced to relinquish every penny they stole during the entire wholesale ponzi scheme era.

G.

Gayle in MD
07-02-2012, 08:06 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The former chief executive of Barclays Martin Taylor has told the BBC that Barclays' actions amount to <span style='font-size: 17pt'>"systematic dishonesty".</span>

Barclays was fined £290m ($450m) for trying to manipulate interest rates at which banks lend to each other.

Martin Taylor, who was chief executive, of the bank from 1994 to 1998 said that Barclays' deception looks like a deliberate strategy as it had been going on for years. </div></div>

What a surprise!



<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">'Accepted culture'

The fine imposed on Barclays is part of an international investigation into the setting of interbank rates between 2005 and 2009.

Each day the British Bankers' Association (BBA) and the European Banking Association publish the the Libor and Euribor rates by taking an average of the estimated rates submitted to them by leading banks.

Between 2005 and 2008, the Barclays staff who submitted estimates of their own interbank lending rates were frequently lobbied by its derivatives traders to put in figures which would benefit their trading positions, in order to produce a profit for the bank.

And between 2007 and 2009, during the height of the banking crisis, <u>the staff put in artificially low figures, to avoid the suspicion that Barclays was under financial stress and thus having to borrow at noticeably higher rates than its competitors.</u>


The FSA pointed out that Barclays traders were quite open about their routine attempts to lobby their colleagues who submitted the bank's estimate of its borrowing costs to the BBA.

It was particularly concerned because it appeared to be "accepted culture" among some staff.

"Requests to Barclays' submitters were made verbally and a large amount of email and instant message evidence consisting of derivatives traders' requests also exists," the FSA said.

<span style='font-size: 17pt'>In one instance, a trader recounted a conversation in which he had "begged" the submitter to put in a lower Libor figure.

"I'm like, dude, you're killing us," he said. His manager replied, "just tell him to... put it low".

In turn, the staff submitting the data would respond to the traders' requests.

"For you…anything," said one. "Done… for you big boy," said another.

And: "I owe you big time... I'm opening a bottle of Bollinger." </div></div> </span> link (http://www.bbc.co.uk/news/business-18622264)

Free market.........yeah right. Once again, Wall St steals from the whole nation and gets away with it.
Q </div></div>


<span style='font-size: 11pt'> UPDATE: </span>


<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> Barclays Libor Scandal: Chairman Marcus Agius Stands Down From Bank




The rate-rigging scandal claimed its first scalp on Monday as Barclays confirmed its chairman Marcus Agius is to step down.

Agius, who was chairman for six years, said: "This has been a period of unprecedented stress and turmoil for the banking industry in particular and for the wider world economy in general."

He acknowledged that standards of behaviour at Barclays had been unacceptable and that the affair had dealt a devastating blow to the bank's reputation, saying he was “truly sorry" and the "ultimate guardian of the bank's reputation."



His resignation comes after signs of shareholder moves to replace him from the role. He is due to face MPs on the Treasury Select Committee on Thursday - a hearing that is expected to go ahead irrespective of his decision to quit.

Pressure remains on Barclays chief executive Bob Diamond, who will also face a grilling from the committee, on Wednesday. There were growing questions about how much he knew about what was going on after it emerged that Barclays staff mistakenly thought they had been instructed by the Bank of England to lie in their Libor submissions.

The Financial Services Authority's report into the bank said there had been a misunderstanding arising from a conversation between BoE deputy governor Paul Tucker and an unidentified senior Barclays manager on October 29, 2008.

Barclays was fined £290 million by UK and US regulators for manipulating the Libor, the rate at which banks lend to each other last week.

The bank said Mr Agius will remain in post until an "orderly succession is assured" and added Barclays non-executive director Sir Michael Rake has been appointed deputy chairman.

Mr Agius saud: "I am truly sorry that our customers, clients, employees and shareholders have been let down. Barclays is full of hard-working, talented individuals whose integrity is not in question."

Business Secretary Vince Cable has backed calls for a criminal investigation into bankers involved in the affair. The Liberal Democrat Cabinet minister said the public could not understand why the perpetrators of "what looks like a conspiracy" were allowed to "just walk away".

The potential for prosecutions arising from the scandal has been downplayed by Treasury sources who point out that there are no criminal sanctions in place for manipulating the inter-bank lending rate, or Libor.

Libor is set on a daily basis by panels of banks and used to help set "swap rates" - the borrowing rate between financial institutions. These rates in turn are used to price a vast range of products such as corporate loans and fixed-deal mortgages.

The bank has also agreed to launch an audit, led by Sir Michael, to review "flawed" past practices that have been revealed.

The findings of the inquiry will be revealed in a public report and the bank will produce a new, mandatory code of conduct.

Mr Agius said: "Last week's events - evidencing as they do unacceptable standards of behaviour within the bank - have dealt a devastating blow to Barclays reputation.

"As chairman, I am the ultimate guardian of the bank's reputation. Accordingly, the buck stops with me and I must acknowledge responsibility by standing aside."



He added: "It goes without saying that Barclays will continue to have my wholehearted support in the future."

Labour leader Ed Miliband said the resignation of Mr Agius was not enough, and repeated his call for Mr Diamond to step down.

"I think there needs to be more a more general change of leadership including the chief executive, Bob Diamond," he told ITV Daybreak.

"I do not think it is enough more generally because people just going, resigning, isn't really getting to the bottom of what happened, who is responsible and punishing those who did wrong.

"I want to see criminal sanctions against those who broke the law.

"If you go out and nick £50 worth of goods from your local Tesco's, you are punished, or at least we hope you are punished.

"If you fiddle, lie, cheat, to the tune of millions of pounds you should also have the full force of the law brought against you, in my view."

Ian Gordon, analyst at brokers Investec, urged investors to back Mr Diamond, adding: "Bob is going nowhere."

Mr Gordon said ironically the Libor scandal may "exert fresh pressure" over excess pay in the "bloated" investment arm Barclays Capital.

He added that the litigation risks are being seen as a "multi-bank issue" rather than Barclays-specific, which should take the heat off the banks' shares.

According to reports Agius has also resigned from the board of British Bankers' Association.





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http://www.huffingtonpost.co.uk/2012/07/..._n_1642144.html (http://www.huffingtonpost.co.uk/2012/07/02/barclays-libor-scandal-chairman-macus-agius-stands-down_n_1642144.html)

When is the world going to wake up and send all of these crooks to JAIL!!!!

We have (not literally) universal laws, but only for those who aren't rich!

G.

Qtec
07-03-2012, 03:24 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">

The bankers at the heart of the Barclays interest rate-rigging
scandal could be prosecuted for fraud, an offence that usually
carries a prison sentence, it was disclosed yesterday.

The Serious Fraud Office (SFO) said it was investigating whether it was possible to bring criminal charges against executives who manipulated the London Interbank Offered Rate (Libor) and would decide within weeks whether to proceed.

Shortly after the SFO's announcement, a political row broke out over David Cameron's decision to reject calls for a Leveson-style inquiry into the episode in favour of a more rapid parliamentary investigation into the banking system.

With growing demands for the Barclays chief executive, Bob Diamond, to resign, the Business Secretary, Vince Cable, protested that senior figures in the banking industry "still don't get it". He said the revelations about the manipulation of the Libor system struck many as "bordering on the criminal".

The SFO said it was "considering whether it is both appropriate and possible to bring criminal prosecutions" over the case. It added that the issues were complex and it hoped to reach a conclusion within a month.

The Chancellor, George Osborne, welcomed the SFO's move, telling MPs: "Fraud is a crime in ordinary business – why shouldn't it be so in banking?" He said the SFO was studying whether false accounting charges could be brought under the Fraud Act, adding: "We would encourage them to use every legal option available to them."

The former Metropolitan Police commissioner, Lord Blair of Boughton, urged the SFO to launch a criminal investigation. He told the Lords: <span style='font-size: 17pt'>"If this isn't conspiracy to defraud, then I've never seen one – and I've seen a few."</span> </div></div>

link (http://www.independent.co.uk/news/uk/politics/will-we-see-city-bankers-behind-bars-7904450.html)

Q

LWW
07-03-2012, 04:40 AM
Still confused about the definition of free market I see.

Gayle in MD
07-03-2012, 06:50 AM
Thanks. Good article.

Hoodlums have taken over. Still stealing from everyone else, but like the Mafia, they know who to pay off to stay out of jail, and shut them up.

White collar crime isn't consistantly punished with jail time. That's what must be changed.

Until that becomes the rule, annd these corrupt lying CEO's are locked up, and their money liquidated to pay off their victims, the markets are nothing but a huge Ponzi Scheme.


G.

Gayle in MD
07-03-2012, 06:59 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">But Mr Miliband disagreed. "The bankers are going to be saying, 'Don't over-regulate', and of course we have to be careful, but I think we have had enough now of sticking-plaster solutions."

Ed Balls, the shadow Chancellor, added: <span style='font-size: 14pt'>"Just as in phone hacking or the Iraq war,</span> so in banking, only with an independent, forensic and open public inquiry can we rebuild trust."

</div></div>

LMAO! Don't over-regulate means don't hold us to account for fraud, stealing!

What good are inquiries if the bribe takers let the crooks walk out free?



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