Libor manipulation

A long time ago some big banks decided that it would be good to sell interest-rate derivatives. To do that they needed an interest rate on which to sell derivatives. Various possibilities presented themselves -- Treasury rates or whatever -- but the interest rates that the banks themselves paid on short-term borrowing had an especially obvious appeal as an index.
Societe Generale SA, France’s second-biggest bank, placed sole blame on an ex-trader it didn’t identify for interest-rate rigging that cost it 446 million euros ($607 million) in European antitrust fines.
Deutsche Bank AG and Royal Bank of Scotland Group Plc are among six companies fined a record 1.7 billion euros ($2.3 billion) by the European Union for rigging interest rates linked to Libor.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon called on employees to be vigilant about their language in e-mails and instant messages amid growing regulatory scrutiny of traders’ written communications.
Fannie Mae sued nine major banks over allegations their manipulation of the London interbank offered rate cost the mortgage financing company about $800 million.
Internal Rabobank Groep e-mails cited in the U.S. Justice Department’s case against the bank show a culture where fixing benchmark interest rates had become an easygoing routine, one in which employees joked about rate rigging.
Deutsche Bank AG, Germany’s largest bank, reported a 94% drop in third-quarter earnings and UBS AG postponed a profitability goal after setting aside more money for rising legal costs.
The CFTC today issued an order against Rabobank, bringing and settling charges of false reporting and attempted manipulation of Libor for U.S. dollar, yen and sterling, and of the Euribor and charges of successful manipulation of yen Libor.
Three former ICAP Plc employees were charged by U.S. prosecutors and the interdealer broker was fined $88 million as the five-year-old probe into the rigging of benchmark interest rates ensnared another financial institution.
Two former RP Martin Holdings Ltd. employees in London became the first brokers to face criminal prosecution in the global probe of manipulation of the London interbank offered rate.