Which banks were involved in the Libor scandal?
Many leading financial institutions were implicated in the scandal, including Deutsche Bank (DB), Barclays (BCS), Citigroup (C), JPMorgan Chase (JPM), and the Royal Bank of Scotland (RBS).
Who was most responsible for the manipulation of LIBOR?
The investigation into the Swiss bank UBS focused on the UK trader Thomas Hayes, who was the first person convicted for rigging Libor. Prosecutors argued that this allowed him to post profits in the hundreds of millions for the bank over his three-year stint, after which he moved to the U.S.-based Citigroup.
What happened after the Libor scandal?
In July 2016, four former City traders also received jail terms after being convicted of rigging LIBOR. The scandal triggered calls for deeper reform of the LIBOR-setting system, along with tougher penalties for offending individuals and financial institutions.
What caused Libor scandal?
The scandal arose when it was discovered that banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than they were. Libor underpins approximately $350 trillion in derivatives.
How did banks profit from LIBOR manipulation?
His profit came from the spread between how much he paid for a security and how much he sold it for. In volatile times, the spread widened, reflecting the increased risk that the market might move against him before he had the chance to trade out of his position.
What happened Tom Hayes?
Rutgers men’s lacrosse legend Tom Hayes passes away at 82 – On the Banks.
Where is Thomas Hayes now?
In 2019 he was moved to HM Prison Ford. Interviewed in “The Times” Hayes spoke of the struggles with his mental health and how becoming a Christian and the ministry of the church had helped him to survive. On 29 January 2021 Hayes was released on licence from Ford open prison having served half his sentence.