Libor-fixing scandal

[superfrank]

What did Bank of England say to Barclays about Libor?
http://www.bbc.co.uk/news/business-18665080

In making false submissions about their borrowing costs, managers at Barclays believed they were operating under an instruction from Paul Tucker, deputy governor of the Bank of England.

the BoE are desperately trying to distance themselves from the story, but i wouldn't be surprised if they did give the banks the nod. hopefully we'll get to hear the truth sooner or later.

[Ferru123]

http://yfrog.com/mgjpgegj

[jimrobo]

did you watch the diamond testomony?? He was a right slippery toad. Blatantly lying IMHO and trying to dodge as many questions as he could.

Could get interesting when the others are interviewed

[andyfuller]

Could get interesting when the others are interviewed

Wouldn't hold your breath these mp select committees are a waste of space, more into tweeting than asking decent questions. Diamond or should I say bob just ran rings around them.

[jimrobo]

Well as he was first anything he says they don't have much to argue against him. If someone turns round and says something completely contrary then it will get interesting when he comes back

[superfrank]

the SFO have got involved now. hopefully Diamond and a few others will get 20 years each, but i won't be holding my breath.

[Ferru123]

Does anyone know whether, legally, there is any difference between what the Barclays traders did and what manipulators on Betfair do every day of the week when they spoof the market with large orders?

Jeff

[jimrobo]

The SFO are after them for submitting false market information aren't they

[superfrank]

Does anyone know whether, legally, there is any difference between what the Barclays traders did and what manipulators on Betfair do every day of the week when they spoof the market with large orders?

Jeff

yes. there is nothing illegal about entering or withdrawing orders in a market. the rules are set by the exchange and i can't see a problem as spoofers take large risks with their own money (they've calculated that in certain situations the risk/reward ratio makes it profitable to do so). don't get me wrong, i find it a disagreeable strategy and a slightly underhand method of trading, but illegal, no way.

what Barclays and others did is very different and is fraud.

edit: futures exchanges charge for orders that are withdrawn from a market without being filled - most futures brokers absorb that cost and it is ultimately passed on to clients in their commissions on completed trades.

[Ferru123]

From a website run by the National Fraud Authority (http://www.actionfraud.police.uk/fraud- ... nipulation):

'Market manipulation could include making false or misleading statements and completing transactions that have the purpose of giving a false impression about supply or demand.' (emphasis mine)

Jeff