ICAP fined £55m Over Libor Rigging Scandal

The London based brokerage-ICAP, has been fined £55m by regulators with three of its former employees facing criminal offence charges in the United States. ICAP has been under investigation by regulators for allegedly manipulating the Libor rate, the global benchmark on which trillions of mortgages and loans are set.

Michael Spencer, chief executive of ICAP, which has been fined £55m for its role in the Libor-rigging scandal

How the Libor is currently set

Libor – the London interbank offered rate– is a benchmark rate computed based on submissions of rates by a number of leading banks for 10 currencies and 15 lengths of loan, ranging from overnight to 12 months. In each case, the four highest rates and the four lowest rates are ignored. The average of the remaining rates makes up the Libor rate. Libor is embedded in more than $300tn (£192tn) of financial contracts, derivatives and loans.

How the Libor was manipulated

According to the US  Department of Justice, one of the former employees-known as “Lord Libor”- distributed a daily email to individuals outside of ICAP, including derivatives traders at several large banks. The email contained "SUGGESTED LIBORS", purported predictions of where yen Libor ultimately would fix each day across eight specified borrowing periods.

Criminal Offence Charge

Each of the three former employees face a maximum penalty of 30 years in prison if convicted for charges filed against them by the US department of justice (DoJ). They have been charged with conspiracy to commit wire fraud and two counts of wire fraud.

Recent Libor-rigging Scandals

The £55m penalty is a relatively modest sum when viewed in the context of the fines imposed on three other financial institutions-Barclays, Royal Bank of Scotland and UBS- which have settled with regulators over Libor. Last year, Barclays was fined £290m by British and US regulators for manipulation of Libor and Euribor interbank rates between 2005 and 2009. Royal Bank of Scotland just over £390m and UBS just over £1bn on similar issues.

Reference Links:

http://www.theguardian.com/business/2013/sep/25/icap-fined-55m-pounds-libor-rigging-charges-former-staff

http://news.sky.com/story/1146297/libor-scandal-icap-fined-amid-criminal-probe

http://www.dw.de/eu-to-tighten-control-of-benchmarks-in-wake-of-libor-scandal/a-17098153

http://www.bbc.co.uk/news/business-22871584

http://www.managementtoday.co.uk/go/news/article/1213541/libor-scandal-claims-its-latest-victim-icap-coughs-55m/

http://www.telegraph.co.uk/finance/libor-scandal/10333655/ICAP-fined-55m-over-Libor-rigging-scandal.html

http://uk.reuters.com/article/2013/07/29/usa-libor-philadelphia-lawsuit-idUKL1N0FZ16620130729

Ramleela

Ramleela, one of the most highly anticipated films of the year, garnered more than 5.9 million views within weeks of its trailer's release. "It’s the best trailer I have ever made among my films", says Sanjay Leela Bhansali. Click Ramleela to watch the trailer.

Ramleela is an adaptation of Shakespeare’s timeless love story Romeo & Juliet. A young man (Romeo) and woman (Juliet) fall madly in love, going against the enmity that exists between their two families. However, deaths of the two star-crossed lovers ultimately reconcile their feuding families.

Ramleela Movie Snippet

Ramleela, in contrast, starring Ranveer Singh and Deepika Padukone, portrays a violent and passionate love story, at the backdrop of the rural Rajasthan. The movie is set in "a town like no other" as the trailer proclaims. It is known as the land of guns, goons and deep-ingrained enmity. Ram – the local village Romeo, is a raapchik, cheap, dramatic vagabond. Leela is a beautiful, young, spicy, fearless gujrati chokri, born to an underworld mistress and yet far removed from the violence that surrounds her.

The Jadejas and the Rabaris are sworn enemies since the past 500 years. Worlds collide when their own kin-Ram and Leela-dares to fall in love with each other. Ram fights the whole world for his Leela and yet the man stands by his clan even at the cost of his own love. Leela's life is only about her faith in her lover, her tireless wait for him, her sacrifices for him and ultimately herself against him. The sizzling chemistry of stars Deepika Padukone and Ranveer Singh, the striking background score comprising 10 culturally nourished songs, their hard-hitting dialogues or the picturesque Gujarat, every aspect of this film has been paid great attention all to ensure it leaves an impact. Ramleela is certainly a film that I will want to catch – first day, first show if possible. Ramleela is all set to hit the theaters on 15 November 2013