Lessons from the Hayes conviction

From The Financial Express –

“Last week’s conviction of Tom Hayes, in the infamous London Interbank Offered Rate (LIBOR) rigging scandal, should be an eye-opener for Indian regulatory authorities. The scandal, which peaked around 2008, involved some major banks—including JP Morgan, Deutsche Bank and Barclays Bank—artificially understating the interest rate.

While it may no longer be shocking to hear Hayes pleading that such interest rate manipulations were common knowledge, both to his seniors and the banking sector in general, it may be heartening to note that RBI has taken proactive steps to counter similar manipulations of MIBOR—Mumbai Interbank Offered Rate—which was originally set up on the lines of LIBOR. Although it is not a global benchmark like LIBOR, it is, as the NSE defines it, the “yardstick for the money market”, serving as a reference in the interest rate swap market in India and a benchmark rate for majority of deals struck for interest rate swaps, forward rate agreements, floating rate debentures and term deposits.”

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Barclays machine moniker misfire has Brits bristling

From ATM Marketplace –

“In an apparent attempt to ease customers' transition from staffed teller counters to machine-equipped "assisted service counters," a handful of Barclays branches in the U.K. have given first names to their self-service devices.

According to a report by the U.K.'s Daily Mail, the names were meant to help customers distinguish one machine that performs a particular set of transactions from another that performs a different set. For instance, you might see "Sally" about depositing a check, but visit "Mike" to arrange a direct debit.

However the effort has not gone down well with those who see the attempt to humanize machines as a patronizing brush-off by the bank.”

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Britain’s two biggest High Street banks dragged into the FIFA bribery and corruption scandal

From Mail Online -
Two of Britain’s biggest High Street banks have been dragged into the bribery and corruption scandal engulfing football’s world governing body.

Barclays and HSBC have been named in legal papers filed by the US Department of Justice after millions of dollars in suspect transactions linked to Fifa were allegedly moved through their accounts.

On Wednesday the Americans charged 14 officials following a four-year FBI probe into bribes to obtain lucrative marketing rights to football tournaments.

The corruption allegations were set out in a 160-page dossier. The documents also name London-based Standard Chartered Bank, which focuses largely on developing countries.

All three British-based banks are said to have handled suspicious transactions linked either to FIFA or its officials and connected companies.”

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