thread, 2017! title: Deutsche bank to pay $220 mil in US fines for LIBOR fixing!! UPDATE: DB giving NEGATIVE interest rates!!

The Bank of England will start setting the interest rate benchmark to replace Libor in April 2018.

The central bank will take over the administration of the SONIA rate – which stands for the Sterling Overnight Index Average – on April 23.

A panel of banks including Goldman Sachs, Barclays and Deutsche Bank voted to recommend an alternative to Libor for use in sterling derivatives in April of this year.

A Bank of England working group approved SONIA as its preferred short-term interest rate benchmark thereafter.




[link to www.businessinsider.com]

When Andrew Bailey, head of the Financial Conduct Authority (FCA), disclosed in July that Libor will be phased out in 2021, few people in the financial world were surprised. The London Interbank Offered Rate (Libor), a benchmark interest rate used in markets worldwide, has been dying a slow death since the credit crunch. Its demise will mark the end of an era.

Although Libor started as an innovative benchmark to facilitate bank loans, it has gradually become a staple of the financial system.

Every day, bank panels around the globe – one for each major currency – submit an estimation of the interest rate they charge to lend to one other, backed up by transaction data. This interest rate underpins a wide range of financial products, from futures and derivatives to mortgages, worth at least $450trn.

The Greek banker
Libor is the brainchild of 91-year-old financier Minos Zombanakis, known in the City of London as ‘the Greek banker’. If Indiana Jones was a suited and booted banker rather than an archaeologist, Zombanakis could play the part.



[link to www.worldfinance.com (secure)]

How do you give much of the world an overnight increase in interest rates?



Too difficult? Well, how do you tell many of the world’s lenders that they will have to accept a cut in the value of their loan books? And what about all the trillions of dollars of financial products that derive their value from those debts? This, in short, is the scale of the task facing those having to abandon Libor.

The London interbank offered rate will cease to be in 2021. To replace it, the Bank of England, right, is offering Sonia, or the sterling overnight index average. In the United States, authorities have devised the broad Treasuries repo financing rate, or BTR.


[link to www.thetimes.co.uk (secure)]

Last Edited by Digital mix guy Spock on 11/01/2017 02:43 PM

1.6 Trillion € say no one cares.

yup!! actually, I agree. but this issue is still significant, though, for the banking system!

Last Edited by Digital mix guy Spock on 11/01/2017 02:50 PM

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Spendocrats in those states will tear through that in a few days

Justice department should give the money to tea party groups. In all fairness.

Big deal.
What is that? $5 millionper state.
What about my money that was wiped out in corrupted markets as a result?

agreed!!

Libor scandal and the accountants, investigators, auditors was VERY tied to Sandy Hook show. Recall Lanza Dad under-pressure to lie for Libor and he had knowledge of the corruption, and he was to present with others their findings. Then ... then I recall 2 other names fully connected to Libor

Iranian authorities have detained almost 100 currency traders and frozen bank accounts woth $5.3 billion in a massive crackdown aimed to stop the slide of the rial, which is already down 10% this year. Tehran Police Chief Brigadier General Hossein Rahimi has said that at least 10 currency exchange shops have been sealed, Tasnim news agency reported. The currency since then has dropped to a record low of 48,400 on Wednesday. The rial has been hurt by concern about Iran's agreement with world powers to curb its nuclear program in return for the lifting of most global sanctions. On the day it was announced, many waved dollar bills alongside 10,000 rial notes - a sign of their hope that it would return to the level it had last enjoyed prior to the tightening of US-led sanctions in 2012. After the arrival in office of US President Trump, the currency has continued to plummet, instead. The Insider Car News [link to theinsidercarnews.com]

from 2017

“[If] the 10 largest U.S. Bank Holding Companies [BHCs] were to retain a greater share of their earnings earmarked for dividends and share buybacks in 2017 they would be able to increase loans by more than $1 trillion, which is greater than 5 percent of annual U.S. GDP.

“Four of the 10 BHCs will distribute more than 100 percent of their current year’s earnings, which alone could support approximately $537 billion in new loans to Main Street.

“If share buybacks of $83 billion, representing 72 percent of total payouts for these 10 BHCs in 2017, were instead retained, they could, under current capital rules, increase small business loans by three quarters of a trillion dollars or mortgage loans by almost one and a half trillion dollars.”

Hoenig was referring to the banks’ own capital, rather than to their deposits, but the damage to local credit markets is even worse if deposits also are being diverted to fund share buybacks. Banks are not serving the real economy. They are using public credit backed by public funds to feed their own private bottom lines.

The whole repo rigmarole underscores the sleight of hand on which our money and banking systems are built, and why it is time to change them. Banks do not really have the money they lend. To back their loans, they rely on their ability to borrow from the reserves of other banks, generated from their customers’ deposits. If those banks withhold their deposits in the insatiable pursuit of higher profits, the borrowing banks must turn to the public purse for liquidity. The banks could not function without public support. They should be turned into public utilities, mandated to serve the interests of the people and the productive economy on which the public depends.

[link to www.truthdig.com (secure)]

Interesting Deutsche bank survived two years of Anglo American sabotage.

Deutsche Bank AG will pass on negative interest rates only to larger corporate customers or the deposits of wealthy individuals and spare most retail clients, Deputy Chief Executive Officer Karl von Rohr said in an interview with Frankfurter Allgemeine Sonntagszeitung.


[link to www.bloomberg.com (secure)]

The embattled German lender has struggled since the global financial crisis of 2008 and the subsequent debt crisis in the euro area. The bank has faced billion-dollar fines, increased market competition, a lower market share in both commercial and investment banking, as well as a series of management changes.

[link to www.bloomberg.com (secure)]