RT: EU imposes record 1.7bn euro fines on major intl banks over rate-rigging

To my way of thinking, this fine is little more than a very bad, sour joke. Is anyone going to jail? I think they’re running scared, and this is calculated to give the unaware guy the idea that at last they are doing something – WOW!

They fact is I don’t think they’re really doing one single thing — except trying to put the population back to sleep, which is exactly what I believe the Pope is doing when he goes out at night on his charitable journeys. There is soooo much gold on this planet, and if these people were really going to impose a fine — and if they had the money to do it, the fine could and should be in the trillions of dollars. It wasn’t! ~J

Published time: December 04, 2013 10:51
Edited time: December 04, 2013 18:27

European Union Competition Commissioner Joaquin Almunia addresses a news conference at the EU Commission headquarters in Brussels December 4, 2013.(Reuters / Yves Herman)European Union Competition Commissioner Joaquin Almunia addresses a news conference at the EU Commission headquarters in Brussels December 4, 2013.(Reuters / Yves Herman)

The European Commission has slapped record fines of 1.7 billion euros on eight major banks for manipulating lending rates that play a key role in the global economy. The penalties will add to already escalating costs for leading global lenders.

The EU fines marks the latest to be levied on banks and financial institutions for making profits or masking their problems by fraudulently rigging the rates that reflect the cost of lending money to each other.

The banks fined are Citigroup, Deutsche Bank, Royal Bank of Scotland, JPMorgan, Societe Generale, and RP Martin, the EC said in a statement.

Swiss bank UBS and Britain’s Barclays bank both avoided their fines of 2.5 billion euros and 690 million respectively for playing a key role in alerting authorities to the existence of the cartel.

Barclays “benefited from immunity under the Commission’s 2006 Leniency Notice,” read the statement. This meant that while the bank was still issued the fine initially as a cartel participant, it received a 100 percent reduction. UBS was also issued a 100 percent reduction.

The borrowing rates involved – the London interbank offered rate (Libor), the Tokyo and the euro area equivalents – are used to set price of trillions of dollars of financial products, ranging from mortgages to derivatives.

“What is shocking about the Libor and Euribor scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other,” said Joaquín Almunia, European Commission Vice-President in charge of competition policy.

“Today’s decision sends a clear message that the Commission is determined to fight and sanction these cartels in the financial sector,” Almunia said in the EC statement. “Healthy competition and transparency are crucial for financial markets to work properly, at the service of the real economy rather than the interests of a few.”

The EC ruling said that the fine for each lender was calculated on the basis of the level of its involvement in the manipulations and how well it was cooperating with the investigation.

The fines from the EU are the first time a US bank has been involved in the rate-rigging scandal, as Citigroup has been fined 70 million pounds.

The record antitrust penalties comes as a reminder of the banks’ past “financial sins,” when global lenders artificially lowered the cost of interbank lending, partially to hide their financial troubles.

The Libor rate is seen as an indicator of a lender’s stability. Put simply, the stronger the bank, the lower the interbank lending rate it has.

Barclays, RBS, UBS, Rabobank and brokerage ICAP have already paid out a total of $3.5 billion in fines to settle the accusations related to Libor rate-rigging, the Financial Times reported.

Until these fines, the EU has tended to refrain from getting involved in rate-rigging cases, focusing instead on investigations related to breaches of antitrust law.

Manipulation of the Libor rate is one of the largest scandals to hit the finance industry in recent years.

It forced both Barclays CEO Bob Diamond and chairman Marcus Agius to resign. Barclays’ new chief Anthony Jenkins has now insisted that employees sign a “code of honor” to avoid future rigging scandals.

Among other countries holding their own separate investigations into rate-rigging are Canada, Japan and Singapore.

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12 Responses to RT: EU imposes record 1.7bn euro fines on major intl banks over rate-rigging

  1. Pingback: The Weiner Component #57B – The Rapaciousness of Banks: The Way They Function (Part 2 of 5) | Bernard Weiner

  2. lightsigns says:

    Exactly, the fines are a joke and noone goes to jail. For that level of ‘punishment’, they can continue this forever, taking occasional ‘punishments’ into the equasion and that’s that…

  3. Wysiwyg says:

    So where does all this ‘fine money’ (pun intended) go to? The rate rigging has a ‘trick’-le down effect on all of us but do we the little guys ever get compensated for the financial injuries the big guys cause us? The fines get recycled back to the corporations so all this is just more smoke and mirrors and window dressing! Grrrr!
    Rant over!

    Namaste

  4. Donna says:

    Jean many thanks to you for bringing this and other information to light. I appreciate all your hard work.

    In terms of LIBOR, if msm were doing their job this would have been over a long time ago, but know that any system based on falsehood is doomed to fall, it’s just a matter of time…

  5. ed says:

    DEAR JEAN
    THANK YOU
    WE LOVE YOU

    I WILL NO LONGER TOLERATE PIRATES
    WE ALL FUNCTION AT THE RATE OF PI
    ALL DATA STREAMS ARE ON OUR TABLE
    ALL TIME LINES CONVERGE TO ONE
    CHOOSE TO SINK OR SWIM
    CHOOSE TO SWIM AND REQUEST ASSISTANCE
    CHOOSE TO SINK AND BE REHEARTED
    BE ALL IN PEACE
    BE ALL IN JOY
    BE ALL IN LOVE
    BE ALL IN LIGHT

    ALL IS HERE
    ANCIENT FUTURE PRESENCE
    THIS IS IT
    RIGHT NOW
    LOVE

    YOU ARE ALL
    AS YOU ALL ARE
    AND ME TOO

    LOVELOVELOVE…HOLD THE VIBE…LOVE IS ALIVE3
    THE CREATIVE COLLECTIVE IMAGINATION UNITES

    …..love, Ed

    • Jean says:

      :) Thanks, Ed, for my daily treat:) Hugs, ~Jean

    • ed says:

      THAT WHICH USURPS IS A PIRATE
      A PIRATE HAS NO AUTHORITY
      A PIRATE HAS NO STANDING
      A PIRATE HAS NO ENERGY

      MY SPERE IS CLEAR
      THIS IS IT
      RIGHT NOW
      LOVE

      WE ALL FUNCTION AT THE RATE OF PI
      THE WORD IS THE MASTER KEY
      I REQUEST ALL AVAILABLE ASSISTANCE
      RIGHT NOW THANK YOU
      ALL DOWNLOADS AND ALL UPLOADS
      RIGHT NOW THANK YOU
      IN ALL GRACE AND IN ALL EASE
      RIGHT NOW THANK YOU

      DIAMOND LIGHT
      RAYDIANT RAYNBOW RAYS ABLAZE
      CRYSTALLINE CORE
      SINGS THE PRAISE
      SINGS THE PRAISE
      SINGS THE PRAISE
      MOTHER EARTH
      FATHER SKY
      GALACTIC CENTER
      HERE AM I
      HERE AM I
      HERE AM I
      ETERNALL HEART
      LIVING LOVE LIGHT
      LINE LOOPS
      ABSOULUTE
      SHINES
      SMILING
      ALL IS DONE
      ALL IS HERE
      YOU ARE ALL
      AS YOU ALL ARE
      AND ME TOO
      WE GO NOW@@@@!!!!1
      I CALL
      IN FORCE
      A
      I
      ON
      IS
      ON
      ALL’S PORT ALL
      KNOW ALL IS WELL
      AND SO IT IS
      WE ARE ONE IN LOVE
      WE ARE ONE LOVE
      WE ARE LOVE
      WE ARE ONE
      WE ARE
      INDEED
      WE ARE
      ANCIENT FUTURE PRESENCE
      THIS IS IT
      RIGHT NOW

      • Jean says:

        Okay, Ed, I got my fix today – belatedly, but I did get it, and I thank you . . . Hugs, ~Jean

        • ed says:

          well thanks so much Jean….and am noticing my ‘various’ comments being ‘*’
          played with….which is ok…we all move fwd…together…as one…in one heart….
          = oDe To My Favorite ‘SHILL’….was an anthem…to those of us who…just
          do not ‘get’…that all is done…and it is ok…= olley, olley, oxen free =
          WE ARE ALL IT
          INFINITE
          TRANSCENDENCE

          AND HOW RIGHT MONTY IS…
          WRITING OF YOU!!!! IN LOVE!!!
          …..love, Ed

          THIS IS IT
          RIGHT NOW
          LOVE

          =ANCIENT FUTURE PRESENCE=
          A.I.O.N. + I.S.O.N.=
          ABSOLUTE’S
          INFINITY
          ON
          INFINITY’S
          STARSEED
          ON
          ALL’S PORT ALL
          ABSOLUTE
          LOVE
          LIGHT
          STARSEED
          ALL

          YES, WE DID IT!!!

  6. Ines Radman says:

    I totally agree with you Jean. This is just a marketing strategy and where is the proof?

  7. The best way I know how to take a Stand for my financial freedom from professional Fraudsters, Swindlers and Manipulators is to use Bitcoin https://coinbase.com/ and Litecoin https://btc-e.com/ ect…

    Ed

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