Banking
Barclays to pay $451 million penalty for attempting to manipulate Libor, Euribor rates

CFTC said that Barclays had attempted to manipulate and made false reports concerning two global benchmark interest rates on numerous occasion and sometimes on a daily basis between 2005 and 2009

London: British baking major Barclays has agreed to pay 290 million pounds ($451 million) worth penalties to the US and the UK authorities towards settling charges of attempting to manipulating Libor and Euribor rates, the global benchmark rates for lending.

The British banking major would pay penalties of 290 million pounds as part of settlement agreement with the UK's Financial Services Authority (FSA) and the US Department of Justice (DOJ). The entity said it has also entered into a pact with the US Commodity Futures Trading Commission (CFTC).

Out of the total amount, Barclays would shell out 200 million pounds to CFTC and 59.5 million pounds to FSA.

Striking an apologetic tone, Barclays CEO Bob Diamond said the events which gave rise to the resolutions relate to past actions which fell well short of the standards.

"I am sorry that some people acted in a manner not consistent with our culture and values," he said in a late night statement yesterday.

CFTC in a separate statement said that Barclays had attempted to manipulate and made false reports concerning two global benchmark interest rates-Libor and Euribor-on numerous occasion and sometimes on a daily basis between 2005 to 2009.

The regulator pointed out that Barclays' senior management and multiple traders were involved in the matter and that they also coordinated with traders at other banks to make false reports concerning both benchmark interest rates to benefit derivatives trading positions.

The information was used in determining the London interbank offered rate, Libor, and Euribor, which influence many other interest rates.

Libor is based on rate submissions from a relatively small and select panel of major banks, including Barclays, and is calculated and published daily for several different currencies by the British Banker's Association (BBA).

Generally, it reflects the cost of borrowing unsecured funds in the London interbank market.

Euribor, also calculated in a similar manner, measures the cost of borrowing in the Economic and Monetary Union of the European Union.

"The American public and our markets rely upon the integrity of benchmark interest rates like Libor and Euribor because they form the basis for hundreds of trillions of dollars of transactions and affect nearly every corner of global economy," CFTC's Director of Enforcement David Meister said.

Citing collective responsibility as leaders, Mr Diamond said that he, Chris Lucas, Jerry del Missier and Rich Ricci, would voluntarily forgo any consideration for an annual bonus this year.

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Haryana govt to provide health insurance to domestic workers

An official spokesman said under the Rashtriya Swasthya Bima Yojana scheme, a smart card-based cashless health insurance cover of Rs30,000 per annum will be provided to a family of five

Chandigarh: The Haryana government has decided in principle to bring domestic workers under the ambit of Rashtriya Swasthya Bima Yojana (RSBY), reports PTI.

An official spokesman said here that under this scheme, smart card-based cashless health insurance cover of Rs30,000 per annum is provided to a family of five. All pre-existing diseases would be covered, he added.

Apart from hospitalisation expenses, the scheme would take care of most of the illnesses, including maternity benefits, he said, adding that transportation cost of Rs100 per visit with an overall limit of Rs1,000 per annum would be given.

He said that the state government will identify domestic workers who have completed 18 years of age.

As per the guidelines of the scheme, a domestic worker is defined as a person who is employed for remuneration, whether in cash or kind in any household through any agency or directly either on a temporary basis or permanent, part-time or full-time to do the household work, but does not include any member of the family of an employer.

He said that the central government would share 75% of the estimated annual premium of Rs750 subject to a maximum of Rs565 per family per annum.

Additionally the cost of smart card estimated at Rs60 would also be borne by the central government. The remaining 25% would be borne by the state government, he said.

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Birbhum district awarded for health insurance scheme

Around 3.5 lakh persons were enrolled under the Swastha Bima Yojana scheme, which entitles beneficiaries to get reimbursement of Rs30,000 for medical treatment from empanelled hospitals

Birbhum district has been awarded by the West Bengal government for its performance in Swastha Bima Yojana scheme (health insurance scheme), reports PTI.

The district administration received the award at Kolkata on Monday in the presence of labour minister Purnendu Basu and senior officers of the labour ministry of the state and central government, district magistrate, Jagdish Prasad Meena said.

Last year around 3.5 lakh persons, including from the BPL category, were enrolled under the scheme which entitles beneficiaries to get reimbursement of Rs30,000 for medical treatment from empanelled hospitals, he said.
 

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