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Sun Jan 20, 2013, 02:05 PM

RBS awaits hefty fines for Libor rigging

Source: The Guardian

It sounds like such fun. A Royal Bank of Scotland trader quips "hahaha" in a series of jovial electronic exchanges as he goes about his work.

But it will soon become clear that however much fun the trader felt he was having, the repercussions for the bailed-out bank will be anything but when it is hit with a staggering 500m or so in fines for manipulating Libor.

Ever since Barclays was fined 290m in June for rigging the benchmark interest rate, Stephen Hester, the RBS chief executive, has been softening the ground for the bailed-out bank to suffer a similar or worse humiliation by regulators on both sides on Atlantic.

Hester's counterpart at Barclays, Bob Diamond, was forced out within days of the Libor fine being announced in June but the RBS chief executive will be hoping to secure the support of regulators even though the fixing of Libor appears to have carried on for two years after he was parachuted in during October 2008.

Read more: http://www.guardian.co.uk/business/2013/jan/20/rbs-awaits-fines-libor-rigging

8 replies, 1537 views

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Reply RBS awaits hefty fines for Libor rigging (Original post)
alp227 Jan 2013 OP
Angry Dragon Jan 2013 #1
triplepoint Jan 2013 #2
DavidWD72 Jan 2013 #3
DallasNE Jan 2013 #4
TheMadMonk Jan 2013 #5
DallasNE Jan 2013 #6
TheMadMonk Jan 2013 #7
Orsino Jan 2013 #8

Response to alp227 (Original post)

Sun Jan 20, 2013, 02:08 PM

1. Where is prison for these people??

steal $100 go to jail
steal $millions pay fine and get big money

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Response to alp227 (Original post)

Sun Jan 20, 2013, 02:23 PM

2. Charges Need to Be Brought Against monsieur diamond

 

These money Gollums won't stop rat fucking the System until they are incarcerated. Money shouldn't be allowed to be paid in lieu of jail time for this.

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Response to alp227 (Original post)

Sun Jan 20, 2013, 05:14 PM

3. You'd think the need is simple on this issue

You fine the company for all profits made on the illegal action and sentence prison time accordingly. If not, what is the deterrent to conduct business properly. Banks have proven time and again that they will tolerate a law breaker as long as that law breaker makes a profit and doesn't get caught.

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Response to alp227 (Original post)

Sun Jan 20, 2013, 06:59 PM

4. Fines Only Hit The Stockholders

While fines are in order the only way to stop this is with jail time for the executives responsible rather than golden parachutes.

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Response to DallasNE (Reply #4)

Mon Jan 21, 2013, 01:48 AM

5. And so? Burnt shareholders will dump stock...

 

...and really punish the company, up to and including the death penalty.

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Response to TheMadMonk (Reply #5)

Mon Jan 21, 2013, 03:50 AM

6. Can You Give Me One Recent Example

Where the shareholders invoked the "death penalty"?

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Response to DallasNE (Reply #6)

Mon Jan 21, 2013, 09:17 AM

7. No incentive. Corporate punishments rarely if ever...

 

...excede the gain made before getting caught.

When it costs $100,000 to legally dispose of a truckload of blue asbestos wool, and the fine is $30,000, WTF do you think happens after the inspector knocks off for the day. (Numbers plucked from bum for illustrative purposes only)

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Response to alp227 (Original post)

Mon Jan 21, 2013, 01:28 PM

8. Only not in America.

A fine is better than nothing, I suppose.

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