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

Wreck Of Russian Ship Rumoured To Have 5,500 Boxes Of Gold Found Near South Korean Island

Gene Editing of Human Embryo Could Find ‘Moral’ Grounds: UK’s Ethics Council

Baidu comes up with a self-driving bus

Developing countries are stepping up their own space programs

McAfee: Number of cybercrime attacks skyrocketed

RemoveDebris Mission To Clear Debris Of In Orbit Over Earth

British experts: Online gambling is dangerous

Vodafone Chooses ‘Highly Trafficked Urban’ Space As Its 5G Testing Grounds

Space To Become A Travel Destination By 2022

Dream Of Immortality Can Be Realised By 2045

World Politics

World & Politics

Ireland pledges to stop investing in fossil fuels

Germany asks to return € 4 thousand subsidies for the purchase of Tesla

Was Trump's visit to the UK the last straw?

Prime Minister May Could Alter Brexit Strategies, Said Ress-Mogg

Le Maire: The US refused to release France from anti-Iran sanctions

One Belt, One Road is facing difficulties around the world

Qatar to raise $ 4 billion to buy Eurofighter Typhoon jets

The UK sets to turn all cars zero-emission by 2030