LIBOR Fixing - Why no jail sentences?

michaels

UBS are second up, fined 3x as much as Barclays and yet Barclays at the time copped so much more bad press with Bob Diamond eventually resigning.

Seems Barclays were scapegoated too much?

I wonder how much more in the way of fines is coming?

And are the fines the main cost or will banks be sued for their entire wealth by those who have settled libor transactions?

And most importantly I can't see why it is not fraud and why those involved have not been charged. Why are the banks (and thus their shareholders) being fined, surely the individuals should be?

Generali

2 UBS employees have been arrested in the US and supposedly the SFO are investigating both UBS and Barclays employees.

BobQ

michaels wrote: »

And most importantly I can't see why it is not fraud and why those involved have not been charged. Why are the banks (and thus their shareholders) being fined, surely the individuals should be?

I suspect because it was not regarded as a real crime like benefit fraud or disrespecting a speed camera where severe penalties are rightly imposed.

Generali

BobQ wrote: »

I suspect because it was not regarded as a real crime like benefit fraud or disrespecting a speed camera where severe penalties are rightly imposed.

I suspect that there will be people in the US going to prison for a very long time. Squeaky bum time for American bankers. The Americans take white collar crime very seriously.

Generali

[STRIKE][/STRIKE]Oh and while we're on the subject of US criminal investigations, the Americans are very keen on extraditing people that have committed crimes abroad that are covered by US law. If the [STRIKE]paper tigers[/STRIKE] SFO don't act to the satisfaction of the SEC (? not sure who the relevant authority is) then the USians will happily do the job themselves.

I think we're going to see what a lot of people including me think should have happened a long time ago.

Losing_the_way

http://www.independent.co.uk/news/world/americas/exubs-traders-charged-over-libor-rigging-8426068.html

mystic_trev

Generali wrote: »

[STRIKE][/STRIKE]Oh and while we're on the subject of US criminal investigations, the Americans are very keen on extraditing people that have committed crimes abroad that are covered by US law. If the [STRIKE]paper tigers[/STRIKE] SFO don't act to the satisfaction of the SEC (? not sure who the relevant authority is) then the USians will happily do the job themselves.

I think we're going to see what a lot of people including me think should have happened a long time ago.

Just like this lot - http://en.wikipedia.org/wiki/NatWest_Three

If I'f been involved in this 'fiddle' I'd be pleading with the SFO to prosecute me! Better to spend a couple of years in an Open Prison, than fifty with Big Bubba :eek:

Generali

From Reuters, the list of shame for 2012:

Bank of America: the US Justice Department is seeking $1 billion in fines for troubled loans sold to Fannie and Freddie; MBIA’s lawsuit against Countrywide, which was disastrously acquired by BofA, rolls on; BofA is one of five banks participating in the $25 billion national mortgage settlement. (Price to book: 0.56, here and throughout via Yahoo Finance)

Bank of China: the families of Israeli students killed in a 2008 terrorist attack are suing the BOC for $1 billion “intentionally and recklessly” handling money for terrorist groups.

Bank of New York Mellon: a subsidiary paid $210 million to settle claims it advised clients to invest in Bernie Madoff’s ponzi scheme; the DOJ continues to investigate possible overcharges for currency trades that it says generated $1.5 billion in revenue. (Price to book: 0.86)

Barclays: $450 million settlement in the Libor scandal; also fined by the FSA for mis-sold interest rate hedges. (Price to book: 0.72)

BBVA: settled overdraft suit for $11.5 million. (Price to book: 0.83)

Citigroup: settled CDO lawsuit for $590 million; one of five banks participating in the $25 billion national mortgage settlement; paid $158 million to settle charges it “defaulted the government into insuring” risky mortgages. (Price to book: 0.62)

Credit Suisse: sued by NY state for allegedly deceiving investor in the sale of MBS. (Price to book: 0.85)

Deutsche Bank: settled a DOJ mortgage suit for $202 million; FHFA fraud case is ongoing. (Price to book: 0.56)

Goldman Sachs: FHFA fraud case is ongoing; after a ruling by federal appeals court, a class action lawsuit over MBS will go forward. (Price to book: 0.91)

Credit Agricole: sued by CDO investors two times. (Price to book: 0.35)

HSBC: settled money laundering charges for $1.9 billion; set aside $1 billion for future settlements related to mis-selling loan insurance and interest rate hedges in the UK; Libor settlement still to be reached. (Price to book: 1.17)

ING: settled charges that it violated sanctions against Iran, Cuba, etc. for $619 million. (Price to book: 0.5)

JP Morgan Chase: being sued by NY state for MBS issued by Bear Stearns; class action lawsuit and criminal probe over failed derivatives trades in its Chief Investment Office; one of five banks participating in the $25 billion national mortgage settlement. (Price to book:0.87)

Mitsubishi UFJ: paid an $8.6 million fine for violating US sanctions on Iran, Sudan, Myanmar and Cuba. (Price to book: 0.54)

Morgan Stanley: fined $5 million for improper investment banking influence over research during Facebook’s IPO. (Price to book: 0.63)

Royal Bank of Scotland: $5.37 billion shareholder lawsuit related to 2008 rights issuance; set aside $650 million to cover claims it mis-sold payment protection products; also fined by the FSA for mis-sold interest rate hedges. (Price to book: 0.28)

Santander: fined by the FSA for mis-sold interest rate hedges. (Price to book: 0.77)

Soc Gen (no relation): rogue trader Jerome Kerviel loses appeal his appeal 3-year sentence for trades that generated $6.5 billion in losses. (Price to book: 0.45)

Standard Chartered: $340 million fine paid to NY state department of financial services for allegedly hiding the identity of customers in transactions with Iran and drug cartels; $327 million paid to the Federal Reserve and US Treasury’s anti-money laundering unit.

State Street: fined $5 million for lack of CDO disclosure. (Price to book: 1.09)

UBS: $1.5 billion Libor fine and two traders criminally charged; rogue trader responsible for $2.3 billion loss found guilty of false accounting. (Price to book: 1.12)

Wells Fargo: Federal lawsuit over mortgage foreclosure practices ongoing; paid $175 million over mortgage bias claims; one of five banks participating in the $25 billion national mortgage settlement. (Price to book: 1.29) — Ben Walsh

PS Price to book is what value of net assets you acquire when you spend a $ or a £ on the company's shares. RBS is in such a state that you can buy a quids-worth of assets for 28p!

MacMickster

US mortgage lenders Fannie Mae and Freddie Mac may have lost more than $3bn (£1.8bn) as a result of the Libor scandal, regulators have said.

A memo from a federal regulator said legal action against banks involved in fixing the Libor rate should be considered.

http://www.bbc.co.uk/news/business-20794772

domfrizby_2

The real people behind the manipulation never go down, they will always choose a fall guy evrytime.

Backbiter

So at what figure does the penalty for financial fraud get downgraded from a jail sentence to a fine?