by The Compliance Exchange on August 6, 2012
As Libor Fault-Finding Grows, It Is Now Every Bank for Itself [DealBook] Major banks, which often band together when facing government scrutiny, are now turning on one another as an international investigation into the manipulation of interest rates gains momentum.
New York Fed Faces New Scrutiny on Rate-Rigging Scandal [DealBook] The Congressional scrutiny of the Federal Reserve intensified this week, as the regulator faced new questions about failing to prevent banks from manipulating interest rates. In a letter to the New York Fed and the Federal Reserve Board in Washington, Senator Sherrod Brown challenged the regulators to defend their response to the rate-rigging scandal.
UBS Dismisses Traders And Managers Over Libor, Der Sonntag Says [Bloomberg] UBS AG (UBSN) has dismissed about two dozen traders and managers in connection with an investigation of manipulation of the London interbank offered rates, Der Sonntag reported.
Four-year silver probe set to be dropped [FT] A four-year investigation into the possible manipulation of the the silver market looks increasingly likely to be dropped after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation.
Study Questions Risk of S.E.C. Revolving Door [TNYT] The revolving door has long been the focus of government watchdogs here, a symbolic portal that business executives and lawyers pass through on their way to government posts and back again to the private sector. There, the thinking goes, they use their influence with former colleagues to reap benefits for themselves and their companies.
Peregrine CEO Had Fancy Pool, but Few Luxury Toys [TNYT] The hunt for the assets of Peregrine Financial Group CEO Russell Wasendorf Sr. has yielded a backyard pool, 2,000 bottles of wine, pickup trucks and some high-end photography equipment.
China’s answer to subprime bets: the “Golden Elephant” [Reuters] The Chinese investment vehicle known as “Golden Elephant No. 38″ promises buyers a 7.2 percent return per year. That’s more than double the rate offered on savings accounts nationally. Absent from the product’s prospectus is any indication of the asset underpinning Golden Elephant: a near-empty housing project in the rural town of Taihe, at the end of a dirt path amid rice fields in one of China’s poorest provinces.
Regulators Probe ‘Captives’ [WSJ] New York’s top financial-industry regulator is investigating whether life insurers are potentially masking their financial health through dealings with related companies, according to people familiar with the probe.
Long Island Man Faked His Own Death, Wife Says [TNYT] The tangled case of the Long Island man who was feared drowned last weekend in the waters off Jones Beach — but who turned up speeding down the highway in South Carolina five days later — took a new twist on Friday, when his wife said he had staged it all without her knowledge.
Trading Program Ran Amok, With No ‘Off’ Switch [DealBook] When computerized stock trading runs amok, as it did this week on Wall Street, the firm responsible typically can jump in and hit a kill switch. But as a torrent of faulty trades spewed Wednesday morning from a Knight Capital Group trading program, no one at the firm managed to stop it for more than a half-hour.
Police Protection, Please, for Municipal Bonds [TheNewYorkTimes] YOU’VE got the power. Why not use it? That’s a question for the Securities and Exchange Commission when it comes to the murky market for municipal bonds. Munis might strike many people as dull. But this market is huge — and hugely important.
RBS sets aside £125m to cover IT meltdown costs [FinExtra] Reporting a £1.5 billion second quarter loss, the 82% taxpayer-owned RBS posted the £125 million charge, most of which will be used to compensate customers hit by one of the biggest systems failures in banking history. More cost could still be recorded.