Daily Management Review

HSBC To Settle Libor Manipulation Probes With ‘$100 Million’


03/30/2018


HSBC agrees to pay for avoiding risks, distractions and expense and not for any wrongdoing.



HSBC Holdings Plc becomes the “fourth major bank” which has agreed to settle down on accusations made by “private U.S. litigation” on conspiracy of manipulating “the Libor benchmark interest rate” through the payment of “$100 million”.
 
Filings made on Thursday in Manhattan’s “U.S. District Court” disclosed the “preliminary accord” received from the investors who were directly transacting with the banks panel for determining Libor or “the London Interbank Offered Rate”. However, court needs to approve the same.
 
As per Reuters:
“Settlements with the OTC investors total $590 million so far, and include $120 million with Barclays Plc, $130 million with Citigroup Inc and $240 million with Deutsche Bank AG”.
 
While the HSBC claims that it had no involvement in any wrongdoing, the settlement step was only taken to avoid the “risks, costs and distraction of litigation”. No comments were available immediately from the company.
 
Libor is used by banks for determining “rates on hundreds of trillions of dollars of credit card, mortgage, student loan and other transactions” along with determining “costs of borrowing from each other”. 16 banks are facing the accusations of “conspiring to manipulate Libor” made by investors which include “the city of Baltimore and Yale University in Connecticut”. The beginning of “private litigation” dates back to 2011.
 
On a global scale banks have, so far, paid nearly “$9 billion” to settle down against “Libor-rigging probes”. However, Reuters informed that:
“Last July, the head of the U.K. Financial Conduct Authority said that regulator will phase out Libor by the end of 2021, citing a lack of data to underpin it.
“The case is In re: Libor-Based Financial Instruments Antitrust Litigation, U.S. District Court, Southern District of New York, No. 11-md-02262”.
 
 
References:
reuters.com







Science & Technology

Large U.S. Study Finds Detection Of Irregular Heart Beat By Apple Watch

Apple to present Netflix competitor at the end of March

Live Human Under-Skin Chip Implantation Takes Place At Barcelona

IDC: Wearable tech gadgets market is booming

Second Patient In 12 Years Becomes HIV Free By Bone Marrow Transplantation

Car-Sharing Platforms Could hold The Key To 5G & Auto Industry Collaboration

Bezos tells about his space plans

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

What trends will be affecting the health sector in the coming years?

World Politics

World & Politics

China's expansion into Europe: Italy’s ports are next

US watchdog is accused of violating aircraft certification process

Large Section Of Citizens Unhappy With Public Services & Benefits: OECD Survey

Largest companies reveal volumes of plastic produced by them

US Warning To Germany About Intelligence Sharing Over Huawei Ban

Mercer reveals the world’s safest cities

No vaccinations, no school: Italy’s new law

Why the new Aachen Treaty cannot save France-Germany relation