Thursday, July 7, 2011

Bloomberg: Libor manipulated by US banks?

Chicago Trading Firm's Lawsuit Claims Banks Conspired To Manipulate Libor
A Chicago trading firm accused Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM), UBS AG (UBSN) and Citigroup Inc. (C) of conspiring to manipulate the London interbank offered rate.

The banks drove down Libor to generate billions of dollars in profits from swaps, loans, interest rate derivatives and other financial instruments whose value depended on the rate, Eldorado Trading Group LLC said in a complaint filed July 5 in federal court in Newark, New Jersey. (h/t Mish Shedlock)
This has been out there for awhile, but this is the first actual official complaint, to my knowledge. Thrown in on top of everything else, this is making Wall Street look like a Mafia subsidiary.


GLH said...

Mr. Hickey:
I wouldn't criticize the mafia like that.

googleheim said...

run from the banks

bank run

Tom Hickey said...

"I wouldn't criticize the mafia like that."

Right, they have a code of honor.