The Developments Of Libor / Euribor Scandals

The LIBOR manipulation took place during economic upswing (2005-2009) and global recession (2007-2009). Before crisis the rates were manipulated on the both sides, lower and upper. The traders requested to increase as well as to decrease the rate depending on their bets. If the traders managed to get the rates higher before the financial crisis then the consumers suffered.

This scandal was unique in itself as it shook the foundation of the sacrosanct $2.2 trillion government securities market which was considered too big to rig. The conventional wisdom was shaken to a great extent and regulations tightened for all the 40 primary designated dealers of T-bills and government bonds.

LIBOR stands for the London Interbank Offered Rate published by the British Banker’s Association. LIBOR indicates the average rate that a participating institution can obtain unsecured funding for a given period of time in a given currency in the London money market. The rates are calculated based on the trimmed, arithmetic mean of the middle two quartiles of rate submissions from a panel of the largest, most active banks in each currency. In the case of the U.S. LIBOR, the panel consists of fifteen banks. These rates are a benchmark for a wide range of financial instruments including futures, swaps, variable rate mortgages, and even currencies.

This report examines and analyses the underlying reasons behind how and why such a massive fraud took place, how it went unnoticed through the years and the actions taken

documents. Bank of America and four other banks reached a $25 billion landmark settlement with

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Financial fraud has been present since before the Industrial Revolution, many cases making a long lasting impact throughout history (Pearson, T. A., & Singleton, T. W. 2008). The 2008 financial crisis was carried out with a significant amount of pressure throughout many industries, results including fraudulent activities. Back of America was brought to the forefront of the financial crisis when mortgaged backed securities collapsed. The US Government sued Bank of America in connection to defrauding investors, following an ongoing investigation into their direct actions during this time period. During the ongoing investigation, stemming from the financial crisis, Bank of America continually tried to prove their innocents and their lack of

In October 2008 ASIC was notified that CBA (Commonwealth Bank of Australia) had attempted to conceal the unlawful actions of one of their most senior financial planners, who had control of an estimated $300 million in investments. (Adele Ferguson, CBA Cover Up Misconduct by Rogue Financial Planner, 2013)

1) There were many individuals that benefitted from the manipulation of LIBOR. The Barclays derivatives traders, Money Market Desk, Bob Diamond and senior management and other banks all had some sort of gain from the LIBOR scandal.Let’s start with the people that had the most monetary gain - the Barclays derivative traders. It is said that LIBOR has been manipulated since the early 90s. Since then, there has been trillions of money made by derivate traders as they influence LIBOR. The traders communicated with the Money Market Desk, the individuals who submitted LIBOR rates, in order to manipulate the rate to their favour. In fact, the investigation found the derivate traders were not

First part of this coursework will look at the definition of market abuse and different types of behaviors which lead to market abuse regards to financial regime of EU. Second part of this coursework will look at the exemption to market abuse. The third part of this coursework will discuss the extent and enforcement measures in EU and when required in UK to keep up the respectability of the financial market by setting up a well-working structure

Parmalat is a multinational Italian dairy food corporation that today represents one of the biggest fraud scandals that has marked history in Europe. What happened and why weren’t the scandalous activities detected beforehand? Parmalat’s investigation was triggered when it “defaulted on a $187 million bond payment in mid-November 2002.” This led to further revelation of the nonexistence of $4 billion worth of claimed bank deposits held by a subsidiary in the Cayman Islands in a Bank of America account. The company was basically falsifying accounts in order to increase assets and hide losses. The increase in assets would influence the public to believe that they were in a good position which in turn allowed

In this essay, I will argue that Germany has captured the European Central Bank (ECB). The ECB sets monetary policy for the Eurozone, which includes all nineteen countries that uses the Euro. Monetary policy, according to the Keynesian Phillips Curve, can either pursue low inflation or low unemployment. Using this assumption, to prove my hypothesis that Germany has captured the ECB, I will provide evidence such as what German policy compared to Eurozone policy compared to ECB policy, and how the charter of the ECB promotes German interests, and newspaper articles that show how Germany is perceived in other European countries.

Over the last few years, the EU has been the main focus of the world as the sovereign debt crisis unfolds. The European Central Bank (ECB), which started out as a hyper-independent central bank later played a more political role that is initially intended by its creators. The article discusses about the origins and evolution of the European Monetary Union (EMU) as well as the ECB leading up to the sovereign debt crisis in Europe.

The structure of this report has been built upon the four channels mentioned above. In Accordance with these channels, we have set up hypotheses in order to test our theory-based expectations with the actual proceedings of the Deutsche Bank. Moreover, in order to get a clear view of the current situation and its implications for the future policies of the Deutsche bank and its business model, we analyzed the occurrence of a similar situation. We looked at the Japanese banking industry, which had to deal with low interest rates for more than a decade (Weistroffer, 2013).

As the most principle stance in EU monetary architectures, the EMU has experienced an incredible institutional transformation under the tremendous pressures not matter from the EU or national levels. In Dyson’s (2000) observation, the EMU’s actual effects on European states began from 1 January 1999. However, the process for putting its conditions in place can be traced to the European Monetary System (EMS) in 1979, since when the specific