Ex-Deutsche Bank Executive Cloete Slams German Libor Criticisms

From Bloomberg Business -

“A former global finance chief at Deutsche Bank AG said the German market regulator ruined his reputation after it claimed he and other managers may have turned a blind eye to Libor manipulation.

Alan Cloete said in an Aug. 10 letter to the agency, Bafin, that he has suffered “as a result of the inaccurate and reputationally damaging assessments” by it. His letter, which was seen by Bloomberg, demanded the regulator issue a correction.

Bafin said in May it had doubts about statements by Cloete that he and others including former co-Chief Executive Officer Anshu Jain were unaware of the rigging of the London interbank offered rate. Deutsche Bank paid a record $2.5 billion in fines to global authorities in April over manipulation of Libor and related benchmarks.

“Cloete did not give any instructions to manipulate Libor, he was not aware that there was any manipulation or intention to manipulate,” Cloete’s lawyers said in the 57-page letter. “Nor would he have tolerated this had he known about it.” “

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After prison sentence, is it goodbye to Libor?

From CNBC –

“Following the 14-year jail sentence of a former City of London trader convicted of rate-fixing, basing indexes on bank-supplied estimates has had its day, the chief executive of the London Stock Exchange Group told CNBC on Wednesday.

"The days of survey-based indices are over," CEO Xavier Rolet told CNBC, after the stock exchange and financial information company posted a boost in first half earnings.

"We are in the process of moving from the old days, where, if you want, these indices and these benchmarks were computed in a survey-based fashion between individuals communicating judgment-based opinion as to where they should be, to an electronic world… where everything is electronic, can be traced, can be audited."

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Financial supervision - One regulator to rule them all

From The Economist –

“The new masters of the financial universe are neither bank bosses nor hedge-fund titans. They are the regulators whose job it is to make finance safer. Daniel Tarullo, Andrew Bailey and Danièle Nouy, senior regulators in America, Britain and the euro zone respectively, may not have the salaries, egos or profiles of Wall Street superstars, but the decisions they and people like them make are shaping the industry. As John Mack, a former boss of Morgan Stanley, reportedly told his successor: “The government is your number-one client.” Even for those who deeply mistrust finance, that ought to give pause.”

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