{"id":5377,"date":"2012-10-02T00:00:00","date_gmt":"2012-10-02T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2012\/10\/changes_related_to_libor_overs"},"modified":"2022-04-28T14:54:54","modified_gmt":"2022-04-28T19:54:54","slug":"changes-related-to-libor-overs","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/","title":{"rendered":"LIBOR Oversight-Related Changes Announced by FSA Chief"},"content":{"rendered":"<p>Britain\u2019s Financial Services Authority managing director Martin Wheatley says that oversight of Libor should become the UK regulator\u2019s job. He made his statements on Friday, proposing that over 100 Libor rates tied to maturities and currencies that lack enough trading information to be set properly should be eliminated right away. He also said that submissions by banks should be grounded in \u201chard data.\u201d<\/p>\n<p>Questions were raised about the London Inter-Bank Offer Rate\u2019s accuracy a few months ago following allegations that Barclays (BCS) and other large banks had been rigging it by turning in borrowing estimates that were artificially low. Considering that LIBOR is the average borrowing cost for banks in Britain for when they are lending each other money, as well as a benchmark interest rate that impacts financial contracts and corporate loans globally, such manipulation cannot happen. Barclays later admitted that it had tried to rig rates to boost its own derivative trading, hide actual lending costs, and create the impression of better financial health during the economic crisis. The bank would go on to settle over these securities allegations: $453 million to the FSA, $200 million to the Commodity Futures Trading Commission, and $160 million to the US Department of Justice. However, several other banks are still under investigation related to the LIBOR scandal.<\/p>\n<p>\u201cMany regional banks and other financial institutions are seeking to recover losses based on fraudulently manipulated Libor rates,\u201d said <a href=\"https:\/\/www.investorlawyers.com\/william-s-shepherd.html\">Securities Fraud Attorney William Shepherd<\/a>. \u201cMost lenders have abandoned the \u2018prime\u2019 rate formula and now base their rates on the widely accepted (and trusted) Libor rate. Our law firm represents financial institutions in claims for damages.\u201d<\/p>\n<p>Acknowledging that Libor governance has been a complete failure, Wheatley, who is expected to become the Financial Conduct Authority\u2019s chief executive when the FSA breaks up into two agencies, acknowledged that inadequate regulation and a \u201ccomprehensive mechanism\u201d to retaliate against those that attempt to \u201cmanipulate the system\u201d has made resulting problems worse. He wants FSA to be given additional authorities, including vetting power over rate-submitters and the ability to prosecute rate manipulation efforts.<\/p>\n<p>According to Advisen.com, with regulatory actions and securities litigation over the LIBOR manipulation scandal growing every day, through the first week of September it had counted 88 actions against 20 banks\u2014that\u2019s 20 regulatory probes and 68 complaints. Among the defendants, besides Barclays, are <a href=\"https:\/\/www.investorlawyers.com\/jp-morgan-chase-background-information.html\">JP Morgan Chase Bank (JPM)<\/a>, <a href=\"https:\/\/www.investorlawyers.com\/citigroup-background-information.html\">Citibank (C)<\/a>, Royal Bank of Scotland Group (RBS), Bank of America (BAC), Credit Suisse Group AG (CS), UBS (UBS), HSBC, Deutsche Bank AG (DB), Bank of Tokyo Mitsubishi, Royal Bank of Canada (RY), and others. More actions over pension fund losses are likely.<\/p>\n<p>FSA to Oversee Libor in Streamlining of Tarnished Interest Rate, SF Gate, September 28, 2012<\/p>\n<p><strong>More Blog Posts:<\/strong><\/p>\n<p><a href=\"https:\/\/www.investorlawyers.com\/blog\/2012\/09\/insider_trading_roundup_sec_se\">Insider Trading Roundup: SEC Settlement Reached Over Alleged Tips In Insurers\u2019 Merger, Court Won\u2019t Throw Out Criminal Charges Related to Info From AA Member, &amp; Asset Freeze Approved Against Broker In Burger King Acquisition<\/a>, Stockbroker Fraud Blog, September 28, 2012<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/#more-5377\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Britain\u2019s Financial Services Authority managing director Martin Wheatley says that oversight of Libor should become the UK regulator\u2019s job. He made his statements on Friday, proposing that over 100 Libor rates tied to maturities and currencies that lack enough trading information to be set properly should be eliminated right away. He also said that submissions [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4027],"tags":[],"class_list":["post-5377","post","type-post","status-publish","format-standard","hentry","category-libor-scandal"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>LIBOR Oversight-Related Changes Announced by FSA Chief &#8212; Investor Lawyers Blog &#8212; October 2, 2012<\/title>\n<meta name=\"description\" content=\"Britain\u2019s Financial Services Authority managing director Martin Wheatley says that oversight of Libor should become the UK regulator\u2019s job. He made his &#8212; October 2, 2012\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"LIBOR Oversight-Related Changes Announced by FSA Chief &#8212; Investor Lawyers Blog &#8212; October 2, 2012\" \/>\n<meta name=\"twitter:description\" content=\"Britain\u2019s Financial Services Authority managing director Martin Wheatley says that oversight of Libor should become the UK regulator\u2019s job. He made his &#8212; October 2, 2012\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"LIBOR Oversight-Related Changes Announced by FSA Chief &#8212; Investor Lawyers Blog &#8212; October 2, 2012","description":"Britain\u2019s Financial Services Authority managing director Martin Wheatley says that oversight of Libor should become the UK regulator\u2019s job. He made his &#8212; October 2, 2012","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/","twitter_card":"summary_large_image","twitter_title":"LIBOR Oversight-Related Changes Announced by FSA Chief &#8212; Investor Lawyers Blog &#8212; October 2, 2012","twitter_description":"Britain\u2019s Financial Services Authority managing director Martin Wheatley says that oversight of Libor should become the UK regulator\u2019s job. He made his &#8212; October 2, 2012","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"LIBOR Oversight-Related Changes Announced by FSA Chief","datePublished":"2012-10-02T05:00:00+00:00","dateModified":"2022-04-28T19:54:54+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/"},"wordCount":521,"articleSection":["LIBOR Scandal"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/","url":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/","name":"LIBOR Oversight-Related Changes Announced by FSA Chief &#8212; Investor Lawyers Blog &#8212; October 2, 2012","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2012-10-02T05:00:00+00:00","dateModified":"2022-04-28T19:54:54+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Britain\u2019s Financial Services Authority managing director Martin Wheatley says that oversight of Libor should become the UK regulator\u2019s job. He made his &#8212; October 2, 2012","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/changes-related-to-libor-overs\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"LIBOR Oversight-Related Changes Announced by FSA Chief"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1oJ","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=5377"}],"version-history":[{"count":7,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5377\/revisions"}],"predecessor-version":[{"id":26980,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5377\/revisions\/26980"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=5377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=5377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=5377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}