Exclusive - Prosecutors, regulators close to making Libor arrests

[dipsydoodle]

Source: Reuters

(Reuters) - U.S. prosecutors and European regulators are close to arresting individual traders and charging them with colluding to manipulate global benchmark interest rates, according to people familiar with a sweeping investigation into the rate-rigging scandal.

Federal prosecutors in Washington, D.C., have recently contacted lawyers representing some of the individuals under suspicion to notify them that criminal charges and arrests could be imminent, said two of those sources who asked not to be identified because the investigation is ongoing.

>

The prospect of charges and arrests of individuals means that prosecutors are getting a fuller picture of how traders at major banks allegedly sought to influence the London Interbank Offered Rate, or Libor, and other global rates that underpin hundreds of trillions of dollars in assets. The criminal charges would come alongside efforts by regulators to punish major banks with fines, and could show that the alleged activity was not rampant in the banks.

"The individual criminal charges have no impact on the regulatory moves against the banks," said a European source familiar with the matter. "But banks are hoping that at least regulators will see that the scandal was mainly due to individual misbehavior of a gang of traders."

Read more: http://uk.reuters.com/article/2012/07/22/uk-banking-libor-criminal-idUKBRE86L0CE20120722

[2pooped2pop]

1. individual misbehavior?

"But banks are hoping that at least regulators will see that the scandal was mainly due to individual misbehavior of a gang of traders."

It's always just a few bad apples not the whole rigged system, right?

[think]

4. Perhaps we must thank the CIA for the term "plausible deniability"

Plausible deniability is a term coined by the CIA during the Kennedy administration to describe the withholding of information from senior officials in order to protect them from repercussions in the event that illegal or unpopular activities by the CIA became public knowledge.

The term most often refers to the denial of blame in (formal or informal) chains of command, where senior figures assign responsibility to the lower ranks, and records of instructions given do not exist or are inaccessible, meaning independent confirmation of responsibility for the action is nearly impossible. In the case that illegal or otherwise disreputable and unpopular activities become public, high-ranking officials may deny any awareness of such act or any connection to the agents used to carry out such acts. It typically implies forethought, such as intentionally setting up the conditions to plausibly avoid responsibility for one's (future) actions or knowledge....

Full description:
http://en.wikipedia.org/wiki/Plausible_deniability

[valerief]

12. Amazing, isn't it? And these individuals will probably be bank tellers, too.

Shit dribbles down unlike economics.

[russspeakeasy]

17. It will end up being one, or two of the night cleaning crew.

They started planning it 50 years ago with pencil and paper.
Obama's dad was in on it.

[valerief]

19. Bingo! nt

[secondvariety]

2. Is it SOP

for the the Feds to notify someone prior to being arrested? Or is that reserved for bankers? I would have figured giving suspects time to shred documents and transfer money overseas wouldn't be a good idea.

[PoliticAverse]

5. The non-elite get no-knock raids at 2 AM. n/t

Last edited Sun Jul 22, 2012, 06:09 PM - Edit history (1)

[awoke_in_2003]

24. There was a story he not long ago...

comparing someone who defrauded about $400 million and a homeless man who stole $200. The homeless man felt guilty, and turned it into the police the next day. The executive got something like 2 years jail and 3 years probation. The homeless man got 15 years, all in lockup.

[warrprayer]

3. Fuck the Banksters

lock 'em up!

[grantcart]

6. 2022 Jeopardy Answer "Serious movements for the begining of prison reform".

[Squinch]

10. And the demand for reform will be because the murderers and rapists are so afraid of the bankers.

[Bonhomme Richard]

7. Why would prosecutors contact suspects to tell....

them they might be arrested? Just asking.

[Ready4Change]

11. Final attempt to generate bribes?

Oh! I'm sorry, I meant to say 'Final attempt to get them to turn themselves in?'

My bad.

[snot]

15. The only positive meaning I can think of is

to put them on notice that any destruction of evidence occurring after such notice would constitute prosecutable obstruction of justice?

Still, I'd rather they have gotten warrents, kicked in doors, and confiscated computers and blackberries.

[russspeakeasy]

20. Professional courtesy. Just in case one of them holds the mortgage.

[dipsydoodle]

31. In this case

the main three suspects probably have no where to run.

[maddezmom]

8. Romney "Goes for the Gold" in Libor Village

http://www.thenation.com/blog/168975/romney-goes-gold-londons-libor-village#

[avaistheone1]

13. Romney is likely making backdoor economic deals with the international bankers to secure his

election to the presidency. It must all be so easy now with Citizens United.

[xchrom]

9. Huh - see when you're a Bankster you have time

To get lawyered up.

[joanbarnes]

14. Uh oh, major hand slap coming...

[bvar22]

16. Yes.

I see a:

* strongly worded letter,

*a whitewash Congressional Report where NOBODY was at fault,
...but a non-specific "everybody" must shoulder some of the blame

*extraction of promises not to "ever be bad again" from industry PR Spokespersons,

*some toothless "Historic Reforms" that actually reform NOTHING,
but makes it on "The List"

*Nauseating Bi-Partisan TV appearances of political leaders congratulating each other
and patting themselves on the back for their "heroism" in taking on the Special Interests,
while claiming at the same time that,
"We can't let the perfect be the enemy of the good"
and
"This is a step in the right direction."

Meanwhile, Big Business as Usual.

Lather, Rinse, Repeat.



You will know them by their WORKS,
not by their rhetoric, promises, or excuses.
[font size=5 color=green]Solidarity99![/font][font size=2 color=green]
--------------------------------------------------------------------------------------------------------------------------------[/center]

[woo me with science]

21. Predictable as hell.

The denial needs to stop.

[riverbendviewgal]

18. long jail terms are the only deterrant

not fines

[Dj13Francis]

22. PERP WALK TIME!!!

Let's start perp walking these ass clowns right into jail. And not country club jails, no... I'm talking don't drop the soap or you'll get an ass stinger type jails.

[byeya]

23. "Trillions of dollars" have been stolen from people who deal with banks in the form of higher

interest rates; lower than honest interest; higher mortgages; etc. according to Robert Reich. This apparent manipulation of LIBOR
has eroded any residual trust people may have had that banks could be trusted to regulate themselves and is another example showing the "free market" to be now, as it always has been, a hoax on the retail saver and borrower.

I will be interested to see if the penalties approximate the enormity of the alleged crime(s).

[DearAbby]

25. They are purging dead wood to pacify

Banks should be broken up, and heavily regulated. We can't trust them to keep our best interests in mind. They are just tossing out some red meat, to pacify us, then business as usual.

They hope this all goes away.

[drm604]

26. Can we at least put the cynicism on hold until we see how this plays out?

In long-running financial investigations it is not uncommon for prosecutors to contact defense lawyers for individuals before filing charges to offer them a chance to cooperate or take a plea, these lawyer said.

They may be going after the low hanging fruit in order to get them to turn state's evidence against people higher up the tree.

I have a feeling that Europe, at least, is in dire enough straits that they may actually do something about it this time.

[dipsydoodle]

28. Wouldn't be a bad idea

Last edited Sun Jul 22, 2012, 05:11 PM - Edit history (1)

This whole scam runs from the traders who had prior knowledge of libor movements through to banks who lowered the rate to artificially support their balance sheets.

The subject of the OP concerns the former - not necessarily the banks.

On the subject of traders best read this : http://www.businessinsider.com/traders-accused-of-libor-rigging-keep-turning-up-at-swiss-hedge-funds-2012-7

[Turbineguy]

27. I'll have to remember to sleep with

my cufflinks on.

[sabrina 1]

29. So they'll arrest a few scapegoats as usual, make some big headlines, and nothing will change.

We need politicians in every country who are not compromised by these Global Entities because as it stands now, it appears they have bought politicians from the US to Greece to Australia and all across the globe. And they too should be arrested as Iceland has done, if they were in collusion in any way with this massive crime against the people.

[kestrel91316]

30. Maybe Rmoney will be one of the arrestees. A girl can dream.......

[freshwest]

32. K & R