SFO boss warns rogue bankers will be brought to justice

From This is Money –

“The boss of the Serious Fraud Office has warned rogue bankers will be brought to justice with more individuals involved in rigging Libor interest rates likely to be charged this autumn.

In a speech yesterday, David Green (pictured) indicated there would be no hiding place for anyone involved in the scam – no matter how senior – saying the watchdog’s Libor probe will ‘go wherever the evidence takes us’.

The comments were made in Green’s first public speech since former UBS and Citigroup trader Tom Hayes was convicted for manipulating Libor and sentenced to 13 years in jail.”

Read more>>

Barclays must face U.S. class action over Libor

From Reuters –

“Barclays Plc shareholders who accused the British bank in a lawsuit of inflating its stock price by manipulating the interest rate known as Libor may pursue their case as a class action, a U.S. judge ruled on Thursday.

U.S. District Judge Shira Scheindlin in Manhattan, whose May 2013 dismissal of the case was overturned by an appeals court, said the claims were similar enough to justify letting the shareholders sue as a group.

She nonetheless said in a 77-page decision that the shareholders face "significant obstacles" to proving damages, including over whether any stock price inflation had dissipated once Barclays started reporting Libor accurately.

Class actions make it easier for plaintiffs to recover larger sums at lower costs than if they sue individually.

Barclays spokesman Marc Hazelton declined to comment.”

Read more>>

BlueCrest Sued in U.S. as Libor Fallout Ensnares Hedge Fund

From Bloomberg –

“BlueCrest Capital Management was sued by a group of investment firms over claims an employee at the hedge fund run by billionaire Michael Platt conspired with banks to rig the Swiss franc Libor rate.

The allegations closely follow information disclosed by the New York Department of Financial Services in April as part of a record $2.5 billion fine against Deutsche Bank AG. The lawsuit cites a transcript released by regulators that indicated a BlueCrest employee asked a Deutsche Bank director to contribute a low interest rate to Libor submissions.

BlueCrest and other defendants “rearranged their Swiss franc Libor-based derivatives desks to encourage cooperation among traders,” investors said in the lawsuit filed June 19 in federal court in Manhattan.”

Read more>>