UBS has reportedly agreed to pay $450 million to settle a probe over LIBOR manipulation.  Please recall that Barclays was reprimanded by officials at the BOE for NOT manipulating their LIBOR rates as effectively as their counterparts at Goldman Sachs and JP Morgan Chase, and yet to no surprise, not a single one of the most egregious manipulators have been charged by authorities.
Supposedly Chilton, Gensler, Shapiro, and the rest of the CFTC are still investigating… at least until the story is completely forgotten by the financial MSM.

ZURICH–UBS AG (UBS) is close to a settlement with U.S. and U.K. authorities and is expected pay more than $450 million over claims that some of its employees reported false Libor rates to boost the bank’s profit, the New York Times reported Sunday, citing anonymous officials briefed on the matter.

 

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If the Zurich-based bank agrees to the deals with various authorities, the collective penalties would yield the largest total fine to date related to the rate-rigging inquiry and would increase the likelihood that other financial institutions would face stiff penalties, it reported.

UBS wasn’t immediately available to comment on the report.

Authorities dealt their first blow in the rate-rigging case in June, when U.K. bank Barclays Plc (BARC.LN) agreed to a $450 million settlement.

U.S. officials are hoping to complete a deal with UBS by the middle of the month, according to officials briefed on the matter, the paper reported.

However, the discussions could spill over into next year, and should the talks break down, the authorities would file a lawsuit against UBS, it reported.

Canadian, Swiss and Asian authorities as well as the Justice Department, the Commodity Futures Trading Commission and the U.K.’sFinancial Services Authority are investigating the actions of more than a dozen banks.
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    • That link nicely represents about how bad the situation is. A lot of people don’t understand about what we are explaining to them but showing them the pictures make people understand a lot better.

    • its a truly scary info graphic when you look at how many people it takes to make a pallet of cash … and then look at the size of the derivative market …. there is no way this can be controlled its a disaster that will destroy the world as we know it

    • Yes, it is in this context but the fine was actually a minuscule 1/2 billion… at least for this one gang of thieves, er bank. 

  1. When the LIBOR rigging scandal broke there were various estimates of how much money was made/how much the rate rigging cost since its full force inception 10 years ago or so. I was heavily involved in the use of LIBOR commercial loans since about 1995.  This type of loan was a tiny tip of the iceberg and yet the commercial Mortgage Backed securities were in the tens of trillions. Home loans were all based on the LIBOR since prime rate as well as many fed rates are part of this paradigm.  I can’t speculate on how large the CDS market is presently, but someone concluded the total amount of derivatives is over 1 quadrillion in USD.  If the LIBOR skim from this total was as little as 50  basis points on a global basis, the profit could easily be 5 trillion dollars over 10-20 years. 
    This is not an uncredible sum and would explain why the Fed shipped $29 trillion to the European and US Banks   The LIBOR rigging and its aftermath, the collapse of the MBS market, can be placed at the feet of LIBOR and its wink wink compliance with the Euro and US Banks.  I heard that even the gold lease rates are set by LIBOR.  There is a class action lawsuit that is presently about $250 billion against these banks. Like the Tobacco Settlement of a similar amount, this will all be settled behind closed doors.  The proceeds will be given to the various countries and states most affected by the harm done through rigging. You can be assures that not a nickel will go to the people most hurt by these actions.  How much did you get from Lorillard and Altria when they settled.  Nothing I expect   You can expect the same results with the LIBOR rigging  The governments will get the money to spend and the people will get nada.

    • $250B?  Pffft!  That’s not even enough to bring out the 1st team legal beagles.  Sue them for $250 TRILLION if you REALLY want their attention.  In some states, one can sue for triple damages plus punitive damages.  Taking away ALL of their ill-gotten gains PLUS a hefty amount on top of that is the ONLY way to let these cretins know that they have well and truly screwed the canine BIG-TIME and that this will not be tolerated.  In order to be effective, the payment of a fine HAS to cause REAL pain.  I’m just not seeing that here.  Given that the reward for cheating FAR exceeds the punishment, we can expect this crap to continue until some real pain is inflicted on these turds.  Long jail terms seem appropriate but it seems that fines are all that any government is willing to do.  Hmmm… could it be that these fines are nothing but mere salve on a serious injury?  If so, it would allow the Gov officials to continue to claim that they are in charge and watching out for our best interests.  What utter nonsense!
       

    • Government will step in and squash private lawsuits as a threat to the national economy or some such. They won’t let the little guy get ahead.

    • Actually, way more than a nickel will be taken away from people in forms of taxes and it forms of creating dollars out of thin air which will steal the purchasing power of those who are holding the US dollar.

  2. PS  The final settlement costs will be a drop  in the bucket to the bottom lines of these banks.  The behind the scenes negotiations will result in a multi decade cost factor spread amongst many banks with the costs passed on to the customers in the form of new fees and bumps in interest rates. So long as people have debt the banks will pass on these settlement costs just like the tobacco firms passed on the settlement costs through higher prices to the people addicted to debt,uh, I mean cigarettes. 

    • Sure it is.  White collar crime is the best and surest way to VAST wealth in this country, as well as in Europe.  Just gotta remember one rule, though.  You HAVE to share some of the loot.  It is not the theft that the Gov frowns upon, it is the stinginess of those who plunder the citizens without sharing that matters.  As proof, I offer the difference in result between Jon Corzine and Bernie Madoff.  Same basic theft, but with WAY different outcomes.  Poor Bernie… rotting away in a cell for not sharing while Corzine is living the life of an economic potentate.

    • Exactly! We should also be allowed to sell illegal drugs because it is our liberty and it is the buyers that decide to get affected by the drugs. As for the banks, they are stealing our wealth by taxes when we don’t even want to.

    • Forehead?  Nah, start with the fingers and toes while singing “This little piggy went to market… BLAM!  And this little piggy stayed home… BLAM! etc.  ;-)

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