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Libor

Libor
Libor (London interbank offered rate), is meant to represent how much banks pay to borrow from one another. It is also a benchmark for at least US$550 trillion worth of contracts spanning interest rate derivatives to residential mortgages. A scandal erupted after banks were found to be rigging the system. Barclays was fined US$453 million by global regulators in June 2012 for manipulating Libor, and UBS was hit with a US$1.5 billion bill in December 2012. In February 2013, RBS was fined US$612 million to settle US and UK regulatory charges of misconduct, manipulation, attempted manipulation and false reporting of yen, Swiss franc and dollar-denominated Libor.
last updated:
9 September, 2024
A security guard walks past a directory board inside the Hong Kong Monetary Authority building. Photo: Reuters
Hong Kong stock market

Currency loss, fund flight put ‘temporary’ pressure on Hong Kong markets: Daiwa

Hong Kong’s equity market may have to live under the cloud of currency weakness and fund exodus in the short term, until the interest-rate gap diminishes and ‘self-corrects’ over time, according to Daiwa.

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China-Africa relations

Kenya’s new government signals its intent to renegotiate Chinese loans

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Banking & finance

Hong Kong banks face pressures on US$205 billion of Libor-linked contracts

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Macroscope

Macroscope | Can Hong Kong ensure a smooth shift away from the Libor benchmark?

Hong Kong has made some progress, but will need to accelerate its pace to complete the transition by the end-of-year deadline. In Singapore, on the other hand, the monetary authority has made a clear road map to the use of its new reference rate.

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Commercial buildings at dusk in Central. In Hong Kong alone, there were HK$4.3 trillion worth of assets and HK$34.9 trillion of derivative contracts referencing Libor in September. Photo: Bloomberg
Hong Kong economy

Hong Kong falls behind on interest rate benchmarks reform

Companies that have currency swaps with banks face a tough call on which interest rate benchmark to use as Libor is phased out by end-2021.

US regulator sues 15 banks, including HSBC, for rigging Libor benchmark

The US Federal Deposit Insurance Corporation (FDIC) has sued HSBC, Citigroup, Deutsche Bank and 12 other big global banks for manipulating the Libor benchmark interest rate.

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3 Rabobank ex-traders charged with manipulation of yen Libor

In October, Rabobank paid US$1 billion to resolve US and European probes into rate-rigging allegations. Photo: EPA

EU fines five banks and a broker HK$18b for fixing Libor, other rates

European Union antitrust regulators fined six financial institutions including Deutsche Bank, Royal Bank of Scotland and Citigroup a record total of €1.71 billion (HK$18 billion) for rigging financial benchmarks.

Nine top banks sued by Fannie Mae over Libor fixing

More to be charged over Libor scandal

Britain's leading prosecutor, the Serious Fraud Office, is poised to charge more individuals in connection with a global investigation into the Libor interest-rate-rigging scandal.

David Green, Director of the UK Serious Fraud Office.

Libor case raises integrity issues

Evidence that interdealer brokers at ICAP conspired to rig Libor for a bank trader raises questions over such firms' role as honest go-betweens among banks and highlights the pressure customers can put on them.

The world's biggest interdealer broker is the latest financial firm to be fined in the Libor scandal. Photo: EPA

UK fraud prosecutor charges two brokers in Libor probe

Hong Kong Monetary Authority (HKMA)

Financial benchmark reform may stumble on patchy take-up

NYSE Euronext to take over running of Libor

The company behind the New York Stock Exchange will take over running and restoring confidence in the scandal-hit London interbank offered rate, or Libor, a British committee has ruled.

Regulators fined RBS more than US$460 million for rate-rigging.

Japan banking body to tighten interbank rate monitoring

Central bankers in Europe and Asia are expressing concern about potential rate rigging by major financial institutions. Photo: Reuters
Royal Bank of Scotland

UK prosecutor promises hefty evidence in first Libor fixing case

Ex-UBS, Citi trader Tom Hayes appears in court over Libor rigging

Prosecutors allege he conspired with employees from banks - including HSBC, UBS, Citigroup, Deutsche Bank, JPMorgan Chase and Rabobank - and three interdealer brokers - ICAP, Tullett Prebon and RP Martin - to manipulate rates.

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Royal Bank of Scotland

RBS Japan head to roll over Libor rigging

Royal Bank of Scotland's Japan brokerage unit head is preparing to resign as the company faces penalties for attempts to manipulate benchmark interest rates, according to two people with knowledge of the situation.

Royal Bank of Scotland (RBS) faces penalties for attempts to manipulate Libor. Photo: AFP

Barclays bankers focused on revenue at expense of clients: Salz's report

In the report, commissioned by the bank after it was fined £290 million (HK$3.4 billion) in June for manipulating Libor, Rothschild vice-chairman Anthony Salz criticised Barclays for failings in its culture.

Barclays to axe 3,700 jobs and cut costs after Libor losses

Barclays said it would "reduce headcount by at least 3,700 across the group, including 1,800 in the Corporate & Investment Bank and 1,900 in Europe Retail and Business Banking". Barclays employs 140,000 staff.

Hong Kong Monetary Authority (HKMA)

Jake's View | In Hibor debate, remember you have to pay for good data

We are already very much in line. In characteristic copycat fashion the HKMA started an investigation of the Swiss bank UBS a day after it paid up for alleged Libor (London interbank offered rate) infringements. Hibor rhymes with Libor. How much more guilt do you need?

3-month interest rates
Royal Bank of Scotland

The cost of rigging

New York Attorney General Eric Schneiderman is helping lead a probe into claims that banks rigged global interest rates. Photo: AP
Royal Bank of Scotland

Royal Bank of Scotland fined US$612m for rate rigging

More than a dozen traders at RBS offices in London, Singapore and Tokyo manipulated the London interbank offered rate, which is used to price trillions of dollars worth of loans, from at least 2006 until 2010.

Royal Bank of Scotland

Banks consider global Libor deal as costs of scandal rise

Royal Bank of Scotland

Royal Bank of Scotland plans bonus cut to help cover Libor rigging fines

RBS was poised to set aside about £250 million for bonuses at the division, compared with £390 million for 2011. Photo: Bloomberg
Royal Bank of Scotland

RBS faces £500m fine over Libor charges

Hong Kong Monetary Authority (HKMA)

No system rot to surface from Hibor probe

Hong Kong Monetary Authority (HKMA)

Monetary Authority investigates UBS over possible Hibor rate misconduct

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