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Analysis and Comment (15)

Why is the City keeping its suffering under wraps? Why is the City keeping its suffering under wraps? Robin Hawkes

Banks pay a heavy price for the crisis, but fail to count the cost

The major international banks are being lumbered with more and higher fines as the fallout from the financial crisis continues. Our research as part of the Conduct Costs Project at the CCP Research Foundation…
The City has been plagued by financial disasters. Will the replacement of the Financial Services Authority with two new banking regulatory bodies be enough to stop the rot? The City has been plagued by financial disasters. Will the replacement of the Financial Services Authority with two new banking regulatory bodies be enough to stop the rot? AAP Pictures

After a long line of financial disasters, UK banks on regulatory change

If the UK Financial Services Authority (FSA) had been a dog, it would have been about 86 years old when it was put down on April Fool’s Day this year. Uncharitably, some say that the FSA, the lead regulator…
An about-face by the Australian Financial Markets Association on the way our bank bill swap rate is calculated comes as the US mortgage giant Freddie Mac filed a lawsuit alleging unlawful conduct by a number of investment banks. An about-face by the Australian Financial Markets Association on the way our bank bill swap rate is calculated comes as the US mortgage giant Freddie Mac filed a lawsuit alleging unlawful conduct by a number of investment banks. AAP

Is there egg on the RBA’s face?

Last week, the Australian Financial Markets Association (AFMA), the investment bankers' trade union, announced that it was changing the way that it calculated the Bank Bill Swap rate (BBSW), the Australian…
A “substantial portion” of claims in private lawsuits against the banks involved in the LIBOR scandal have been dismissed by the US Federal District Court. A “substantial portion” of claims in private lawsuits against the banks involved in the LIBOR scandal have been dismissed by the US Federal District Court. Image sourced from Shutterstock.com

A delayed reckoning: the US Federal District Court and LIBOR

The major banks implicated in the London Interbank Offered Rate (LIBOR) manipulation scandal received a major boost in their ongoing litigation strategies with the dismissal of large components of a consolidated…
Under fire for manipulating the LIBOR rate, investment Bank UBS also tried to manipulate Australia’s local bill swap rate, say US regulators. Under fire for manipulating the LIBOR rate, investment Bank UBS also tried to manipulate Australia’s local bill swap rate, say US regulators.

Don’t believe the hype; our own LIBOR scandal could be in the wings

Many months after the event, the Australian financial press has woken up to the fact that there was a financial scandal happening elsewhere. Worse still, it may also have happened here. The tabloid-like…
RBS joins the list of banks implicated in the ever-widening LIBOR scandal. RBS joins the list of banks implicated in the ever-widening LIBOR scandal. Flickr\ell brown

In the Tour de Finance, who will be the Lance Armstrong of the financial markets?

In his recent interview with Oprah Winfrey, Lance Armstrong belatedly admitted to taking illicit drugs throughout his career. But in doing so, he also shed light on a corrupt culture within the sport involving…
Failures of compliance and culture have been attributed to the RBS' misconduct in the LIBOR manipulation scandal. Failures of compliance and culture have been attributed to the RBS' misconduct in the LIBOR manipulation scandal. AAP

The long tail of the LIBOR scandal: RBS settlement opens the gate to civil penalties

The fallout from the London Interbank Offered Rate (LIBOR) scandal continues apace with the announcement on Wednesday that the Royal Bank of Scotland (RBS) had reached a $US612 million settlement with…
Re-run: if the US fiscal cliff has the same feel as last year’s debt ceiling crisis, we’re not surprised… Re-run: if the US fiscal cliff has the same feel as last year’s debt ceiling crisis, we’re not surprised…

2012, the year that was: Business and Economy

Different year, same crisis. Around this time last year, the United States was looking down the barrel of economic disaster with the debt ceiling. As we approach 2013, it peers over the fiscal cliff. That…
The UK’s LIBOR system was designed to be transparent but difficult to game: so what happened? The UK’s LIBOR system was designed to be transparent but difficult to game: so what happened? AAP

Watching the dominos fall in the LIBOR crisis

Imagine if we discovered that the monthly setting of the Reserve Bank of Australia’s cash rate was rigged. There would quite rightly be outrage. We trust the RBA Board to make these calls, month after…
As regulators finally move on the Libor scandal, are they asking themselves the right questions? As regulators finally move on the Libor scandal, are they asking themselves the right questions?

In the Libor scandal, where were the regulators?

Welcome to the third and final part of Back to the Future. AS HSBC is fined US$1.9 billion for “egregious” money laundering and the first arrests are made in the Libor scandal, the need for the public…
The fining of Barclays after it was found to be manipulating the UK’s inter-bank lending rate illustrates the failure of regulators to grapple with corruption in global financial markets. The fining of Barclays after it was found to be manipulating the UK’s inter-bank lending rate illustrates the failure of regulators to grapple with corruption in global financial markets. AAP

Back to the Future: how global financial regulation has failed

Welcome to the first of a three part series, Back to the Future, which explores the complicated reasons behind the continuing regulatory and judicial failure to regulate global financial markets. Professor…
The LIBOR scandal has given rise to a vexing question: just who is responsible for the “freewheeling casino” of financial capitalism? The LIBOR scandal has given rise to a vexing question: just who is responsible for the “freewheeling casino” of financial capitalism? higgott

Will Barclays case change the game for casino-style capitalism?

Members of the British Treasury Select Committee, US congressional investigators, state attorney generals and class actions lawyers who are investigating just who knew what and when in the sprawling investigations…
Barclays' manipulation of the LIBOR has raised questions about the Bank of England’s lack of regulatory oversight. Barclays' manipulation of the LIBOR has raised questions about the Bank of England’s lack of regulatory oversight. AAP

Barclays scandal poses uncomfortable questions for Serious Fraud Office

The United Kingdom has had a remarkably poor track record in prosecuting serious economic fraud. In part, this can be traced to deficiencies in the toolkit available to the Serious Fraud Office, a fact…
A Diamond in the rough: Former Barclays chief executive Bob Diamond bore the brunt of public anger over the LIBOR scandal. But attention should be paid to behaviour of regulatory authorities. A Diamond in the rough: Former Barclays chief executive Bob Diamond bore the brunt of public anger over the LIBOR scandal. But attention should be paid to behaviour of regulatory authorities. AAP

Gloom of the system: Barclays fallout highlights structural flaws in financial regulation

As the Deputy Governor of the Bank of England, Paul Tucker, prepares to give evidence to the Treasury Select Committee, he will be mindful of the insult thrown at Bob Diamond, the recently crestfallen…
Barclays - Britain’s largest investment bank - has been fined after it was revealed that the bank had manipulated the London Interbank Offered Rate to boost its trade of credit derivatives and bolster its financial reputation. Barclays - Britain’s largest investment bank - has been fined after it was revealed that the bank had manipulated the London Interbank Offered Rate to boost its trade of credit derivatives and bolster its financial reputation. AAP

Barclays' rate-rigging scandal exposes the rot in UK banking system

The sense of frustration and despair within the British government and regulatory agencies over the behaviour of Barclays in submitting patently false returns to the London Interbank Offered Rate (LIBOR…