Citizens' Issues
HSBC, Citigroup, Deutsche Bank among 12 sued by US FDIC over Libor manipulation
FDIC said the Libor manipulation by these 12 big lenders caused 'substantial losses' to 38 US banks, which were shut down due to insolvency during and after the 2008 financial crisis
The US Federal Deposit Insurance Corporation (FDIC) has sued HSBC, Citigroup, Deutsche Bank and 12 other global banks for manipulation of the Libor benchmark interest rate.
FDIC said the manipulation caused “substantial losses” to 38 US banks, which were shut down due to insolvency during and after the 2008 financial crisis.
The FDIC said the accused institutions cheated the closed banks in US dollar Libor-based swap and other agreements through the manipulation of the rate between 2007 and 2011.
Libor, or the London Interbank Offered Rate, is used as a reference for some $350 trillion worth of financial contracts worldwide, from corporate loans to financial swap contracts.
“The Panel Bank Defendants fraudulently and collusively suppressed USD Libor, and they did so to their advantage,” the suit said.
The banks named are, or were, participants in setting the daily Libor rate: Bank of America, Citigroup, and JPMorgan Chase of the United States, Germany’s Deutsche Bank and WestLB, Britain’s HSBC, Barclays and Lloyds banks, Japan’s Norinchukin Bank and Bank of Tokyo—Mitsubishi, Credit Suisse and UBS of Switzerland, Royal Bank of Scotland, Royal Bank of Canada, and Rabobank of the Netherlands.
Several of the banks have already paid substantial fines to regulators and justice authorities in the United States and Europe for participating in rate-fixing.
Also sued was the British Bankers’ Association, which at the time oversaw the daily fixing of Libor by the banks.
“BBA participated in the alleged scheme to protect the revenue stream it generated from selling Libor licenses and to appease the Panel Bank Defendants that were members of the BBA,” it said.
The FDIC said it was seeking full damages for losses incurred by the closed banks, punitive damages, and damages for violating US antitrust statutes.


US issues arrest warrant against Devyani Khobragade
The new charges, which came a day after a US court dismissed an earlier indictment, accused Devyani Khobragade of visa fraud and making false statements about the visa application of her maid Sangeeta Richard
The US issued an arrest warrant against Devyani Khobragade after prosecutors re-indicted her on visa fraud charges and accused the Indian diplomat of 'illegally' underpaying and 'exploiting' her domestic maid.
In a letter to US District Judge William Pauley, Attorney for the Southern District of New York Preet Bharara informed that Khobragade is 'believed' to be in India and the court will be alerted if and when she is arrested.
"An arrest warrant was also issued today. The Government will alert the Court immediately upon the defendant's arrest so that an appearance before Your Honor may be scheduled. At present, the defendant is believed to be in India," Bharara said in the letter.
He said the indictment alleges that Khobragade made false statements to US authorities "to facilitate her exploitative employment of a household employee who was grossly underpaid and overworked."
Bharara said Khobragade is unavailable because her "whereabouts are known but (her) presence for trial cannot be obtained by due diligence or (she) resists appearing at or being returned for trial."
The new charges, which came a day after a US court dismissed an earlier indictment, accused her of visa fraud and making false statements about the visa application of her maid Sangeeta Richard.
The 21-page indictment, filed by the office of India-born Bharara, states that the diplomat "knowingly made" multiple false representations and presented false information to US authorities in order to obtain a visa for a personal domestic worker.


Sensex, Nifty rally again to frustrate the bears: Friday closing report

Only a close below 6,490 on Tuesday may pull the Nifty lower

In line with negativity on the US bourses and the Asian indices, the Indian indices made a weak opening. Witnessing a range bound session until the last hour of the session, the benchmarks suddenly spurted up to enter green zone and close in the positive.


The Sensex opened at 21,648 while the Nifty opened at 6,447. the Sensex moved up from the low of 21,573 to 21,853 and closed at 21,810 (up 35 points or 0.16%) while the Nifty moved in the range of 6,433 and 6,518 and closed at 6,504 (up 11 points or 0.17%). The NSE recorded a lower volume of 59.64 crore shares.


Among the other indices on the NSE, the top five gainers were Infra (1.05%); Pharma (1%); Realty (0.99%); Auto (0.84%) and Nifty Midcap 50 (0.61%) while the top five losers were Finance (0.80%); Bank Nifty (0.71%); Media (0.64%); Service (0.54%) and Small Cap (0.41%).
Of the 50 stocks on the Nifty, 30 ended in the green. The top five gainers were D L F (3.95%); Jaiprakash Associates (3.64%); Bhel (3.17%); N M D C (2.62%) and L T (2.45%). The top five losers were Ranbaxy (3.18%); H C L Technologies (2.89%); Wipro (2.85%); Axis Bank (2.34%) and Bharti Airtel (1.68%).
Of the 1,547 companies on the NSE, 589 closed in the green, 871 closed in the red while 87 closed flat.


The stock market remains closed on Monday, 17 March 2014, on account of Holi.


After weak economic data from China on Thursday, at least four investment banks lowered forecasts for China's 2014 economic expansion, leading to more pessimism across European and US exchanges.


Back home the inflation based on the wholesale price index (WPI) eased to 4.68% in February 2014, from 5.05% in January 2014 and 7.28% during the corresponding month of the previous year, data released by the government on Friday. Wholesale prices-based inflation eased to a lower-than-expected nine-month low. Build up inflation rate in the financial year so far was 5.17% compared to a build up rate of 6.15% in the corresponding period of the previous year. The government revised upwards the rate of WPI inflation for December 2013 to 6.4%, from 6.16% reported on 15 January 2014.


The government is seeking to raise around $500 million by selling partial stakes in 10 state-owned companies via an exchange traded fund that will be operated by Goldman Sachs' asset management unit.  The ETF will target mainly retail investors, although the fund will also be sold to institutional and foreign investors.


The economy can grow an annual 5.2% in the quarter to end-March on higher farm output growth, the chairman of the Prime Minister's Economic Advisory Council said on Friday. C Rangarajan also said he foresees the economic growth to pick up to 5.5% to 6% in the fiscal year that begins on 1 April 2014.


US indices closed sharply in the negative on Thursday. US retail sales rose in February for the first time in three months which was better-than-forecast data. On the other hand, the number of Americans filing applications for unemployment benefits unexpectedly fell last week to the lowest level since the end of November. Jobless claims dropped by 9,000 to 315,000 in the week ended March 8, a Labor Department report showed in Washington.


Except for Jakarta Composite (up 3.23%) all the other Asian indices closed in the negative. Nikkei 225 (3.30%) as the top loser.


China's Premier Li Keqiang told reporters on Thursday that the nation's 2014 goal of 7.5% economic growth is flexible and some financial-product defaults may be unavoidable. European indices were trading in the negative while the US Futures were trading marginally higher.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)