Charges filed against three traders in LIBOR fiasco – A new banking mess in manipulating energy prices

The U.K.’s Serious Fraud Office charged two brokers yesterday for their role in allegedly rigging Libor rates.

A third trader was charged last month. All three were arrested in England last December. This third trader was charged in the U.S. in December.

The Wall Street Journal provides details at More U.K. Charges on Libor.

The two charged yesterday worked at the same interdealer broker firm. I need to learn more about this, especially the role of interdealer brokerages.

Alleged manipulation of energy prices

In the first story I’ve seen on the issue, the U.S. Federal Energy Regulatory Commission issued a final order with a combined set of $487.9 of fines and penalties against Barclays Bank for manipulating energy prices.

Apparently this issue has been public since the fines were proposed last October.  Sometimes I’m slow to catch on.

Unlike the negotiated settlements in the Libor fiasco, the bank is disagreeing with the report, the characterization of trading, and the penalty. A spokesman said the bank intends to fight the action.

Bloomberg has the details: Barclays, Traders Fined $487.9 Million by U.S. Regulator.

Will comment on this issue as I see more reports.

1 thought on “Charges filed against three traders in LIBOR fiasco – A new banking mess in manipulating energy prices”

  1. Pingback: Another TBTF bank accused of manipulating electricity prices – time to start paying attention to another fiasco | Attestation Update - A&A for CPAs

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