YouTube Added: 04.07.2012
YouTube Added: 03.07.2012
– Barclays Chief Says ‘Sorry’ (Wall Street Journal, July 3, 2012):
LONDON—Barclays BARC.LN +2.73% PLC Chief Executive Robert Diamond apologized for the interest-rate manipulation scandal that has engulfed the U.K. bank but resisted outside pressure to resign.
In a letter to employees, the 60-year-old Mr. Diamond, Barclays CEO since 2011, said he was “sorry” and vowed to impose new internal controls. “I am disappointed because many of these behaviours happened on my watch. It is my responsibility to make sure that it cannot happen again,” Mr. Diamond wrote.
– Barclays CEO Robert Diamond Resigns (Wall Street Journal, July 3, 2012):
LONDON—The chief executive of Barclays BARC.LN +3.53% PLC, Robert Diamond, resigned Tuesday amid intense political and investor pressure from the British bank’s involvement in rigging an important interest-rate benchmark—and another senior executive appeared close to following him out the door.
The scandal is tearing through Barclays’s top ranks. Two people close to the bank said Tuesday that Jerry del Missier, the chief operating officer, is likely to step down from his role. Monday, the bank said Chairman Marcus Agius would resign.
– The MK2 Grenade: Mike Krieger And Max Keiser Take On The World Of Financial Crime (ZeroHedge, July 2, 2012)
There is a reason why WWII legendary “pineapple” grenade bore the initials MK2. Those who enjoy the works of Mike Krieger and Max Keiser are in for a treat, with this 2 for the price of 1 (technically for the price of zero) interview of Krieger by Keiser, as the MKs of the world unite, and take on financial fraud.
From Mike Krieger of Libertyblitzkrieg:
In case you missed it, Josh Brown recently published a list via the Huffington Post of what he believes are the 25 most dangerous people in financial media. He definitely got the first two slots correct. At the very top are Max Keiser and Stacy Herbert, who unrelentingly publish their “Financial War Reports” daily here. At the number two position, is Zerohedge, the best financial site on the web. I have been fortunate enough to have collaborated with Max, Stacy and Zerohedge for the past two years and it has been an extremely rewarding experience. To get to the point, below is my just released latest interview on the Keiser Report. I think it’s the best one we’ve done in a while. Enjoy!
– UK drafts in fraud squad as Libor fine hits Barclays (Reuters, June 28, 2012):
LONDON – Britain said on Thursday it had brought in the fraud squad to investigate possible crimes and would tighten laws over attempts to manipulate lending rates, a scandal which has engulfed Barclays and is expected to spread to other banks.
Shares in Barclays tumbled as much as 18 percent at one point by midday trade, wiping out 4.2 billion pounds from its share price – the biggest one-day fall since 2009, according to Reuters data. Shares were down 14.8 percent at 1113 EDT.
The bank agreed to pay a record $453 million fine to U.S. and British regulators for attempting to manipulate the London Interbank Offered Rate in 2005-08. It is the first bank to settle in a case that also includes most of the world’s other largest financial institutions.
“This is a scandal, it’s extremely serious. They’ve paid a very large fine and quite rightly but frankly the Barclays management team have some big questions to answer,” Prime Minister David Cameron told the BBC.
“Who was responsible? Who was going to take responsibility? How are they being held accountable?” he said.
– Barclays Found To Engage In Massive Libor Manipulation, Gets Wrist-slapped By Coopted Regulators (ZeroHedge, June 27, 2012):
We can finally close the case on the massive Libor manipulation issue that we first brough to the world’s attention back in January 2009 when we penned: “This Makes No Sense: Libor By Bank.” As of minutes ago, Barclays is the first bank to admit it has engaged in gross manipulation of the key benchmark rate that sets the cost of capital for $350 trillion in interest-rate sensitive products. As the CFTC notes, as it produly announces an epic wristslap of $200 million for Barclays Bank: “The Order finds that Barclays attempted to manipulate and made false reports concerning two global benchmark interest rates, LIBOR and Euribor, on numerous occasions and sometimes on a daily basis over a four-year period, commencing as early as 2005.” Surely this massive fine will teach them to never do it again, until tomorrow at least, when the British Banker Association once again finds 3 month USD liEbor to be… unchanged. In other news, who would have thought that the fringe “conspiracy” brigade was right all along once again.
From the CFTC:
CFTC Orders Barclays to pay $200 Million Penalty for Attempted Manipulation of and False Reporting concerning LIBOR and Euribor Benchmark Interest Rates
The Order finds that Barclays attempted to manipulate interest rates and made related false reports to benefit its derivatives trading positions
– As Negative Gold Lease Rates Collapse, The Gold Sell Off Is Likely Coming To An End (ZeroHedge, Dec. 15, 2011):
One of the more curious dynamics for those who follow the gold market closely, has been the relentless grind lower (or higher if looked at on an absolute value basis), of gold lease rates (defined as Libor – GOFO), which recently hit all time record lows (i.e., negative), for the 1 month version, although the more traditional 3 Month (as it is based on the benchmark 3M USD Libor) was also quite close to breaching historic low levels. And while we have discussed the nuances of Libor-GOFO, or the gold lease rate extensively before, a good summary was presented by Jesse’s Cafe Americain yesterday, who correctly suggested that record lease rates are a primary driver for the near historic sell off we experienced yesterday.
In a nutshell, negative lease rates mean one has to pay for the “privilege” of lending out one’s gold as collateral – a prima facie collateral crunch. The lower the lease rate, the greater the use of gold as a source of liquidity – and since the indicator is public – it is all too easy for entities that do have liquidity to game the spread and force sell offs by those who are telegraphing they are in dire straits and will sell their gold at any price if forced, to prevent a liquidity collapse. Said otherwise: to force a firesale. Well, we are happy to announce that the selloff spring clip potential that is embedded in a near record negative lease rate has now been discharged courtesy of the $100 dump in the past two days, which may have happened for a plethora of reasons and nobody can tell why precisely, but one thing is now sure: the underlying tension in the supply and demand for gold as a source of liquidity has collapsed. That said, the next time we approach the previous thresholds we will advise readers as it will likely indicate another gold-derived liquidity rubberband “breach” is imminent.