Libor Probe Expands To Bank Traders (WSJ)
One of the sprawling probe’s biggest targets: a group of traders whose efforts allegedly were coordinated by Thomas Hayes, who worked for UBS from 2006 to 2009 and then moved to Citigroup, according to a person with knowledge of the investigation. Mr. Hayes was fired by Citigroup in 2010, according to people familiar with the matter. He couldn’t be reached for comment. Mr. Hayes allegedly worked with the other traders to push submissions up or down for a benchmark interest rate called yen Libor, according to court filings by Canada’s competition regulator, which identified him only as “Trader A.” The agency said it was told by UBS that Trader A told another trader at Royal Bank of Scotland Group PLC “who his collusive contacts were and how he had and was going to manipulate yen Libor.”
Trading Surges Boosted Whale Positions Before Audits (Bloomberg)
Trading surges that temporarily boosted the value of credit derivatives held by JPMorgan may provide clues about whether traders at the bank masked losses that have spiraled to $5.8 billion. Spikes in late January and again at the end of February, which more than doubled the volume of trades in an index tied to the creditworthiness of companies, lowered the cost of the index, raising the value of the bank’s holdings. The surges came just before end-of-the-month bank audits to verify prices.
Ex-Anglo Irish Bank Chief Charged With Fraud (AP)
Sean FitzPatrick was arrested Tuesday at Dublin Airport as he returned from holiday. Two other senior former Anglo executives were arrested in Dublin and charged with 16 fraud-related counts Monday. The 64-year-old Mr. Fitzpatrick presided over Ireland’s runaway property boom, which was swiftly followed by the banking collapse at the heart of the country’s 2010 international bailout. Anglo’s losses on bad loans to property speculators are nearing €30 billion ($36 billion), or more than €6,500 for every person in Ireland.
Fed Official Wants Tougher Volcker Rule (WSJ)
Fed Governor Sarah Bloom Raskin said that the market-making and hedging exemptions should be extremely narrow “because of the potentially severe dangers of, and costs associated with, proprietary trading by institutions that have access to the federal safety net.” She raised the possibility that the financial system would be better off if banks ceased market making and hedging as well, saying it is possible that the combined regulatory, compliance and other costs could “outweigh the benefits we as a society supposedly receive.”
LI teen crashes car into neighbor’s house, cops say don’t worry about it (NYP)
A 15-year-old Long Island teen lost control of his dad’s car while taking it for a joy ride on Saturday — driving it across two lawns and then into a house — and cops refused to arrest him or even give him a ticket. The resident of the Massapequa home returned from dinner at 6 pm to find a Nissan Altima — driven by Robert Carracher — had wrecked the fence attached to the side of his house along with an air conditioner and sprinkler system. He also learned that Nassau cops were unwilling to charge the teen in the accident. “I’m outraged. A car hits your home and nobody gets arrested?” said Vincent Grande, a criminal attorney. He estimated the damage at more than $5,000. “When I used my phone to take pictures, the kid turned away and his dad gave me the finger.” Police explained that Carracher wasn’t charged because it was accidental and the youth was too young to have a license.
Moody’s Ratings Cut Fuels German Resentment (Reuters)
The prospect of Europe’s biggest economy losing its cherished AAA credit status has unsettled Germans, already angry about footing the bill for bailouts, and triggered calls for an even tougher stance on Greece and other euro zone laggards. While politicians and economists were at pains to argue that Moody’s downward revision to Germany’s credit rating outlook would have little immediate impact on borrowing costs, ordinary Germans said they were worried. “If things pan out the way Moody’s have predicted then we will have problems here with unemployment, if we lose confidence that things will get better, it’ll mean big problems for the economy,” said Memet Dogan, a 45-year-old transport worker near Berlin’s Brandenburg Gate.
Citi’s New Chairman Takes Hands-On Approach (WSJ)
The new chairman’s attention to the operational side contrasts with Mr. Parsons, who focused more on the job’s diplomatic aspects. Mr. Parsons stepped down in April after three years as chairman and more than 16 years on Citigroup’s board. The 65-year-old Mr. O’Neill, who a decade ago turned around Bank of Hawaii Corp. and briefly ran Barclays PLC, is a “nitty-gritty operations guy” who “understands what he doesn’t understand,” say people close to the company.
Worker charged with arsons in Maine sub fire (AP)
A civilian employee set a fire that caused $400 million in damage to a Navy submarine because he was suffering from anxiety and wanted to get out of work early, Navy investigators said in a complaint filed Monday. Casey James Fury, 24, of Portsmouth, N.H., faces up to life in prison if convicted on two counts of arson for allegedly setting fire to the USS Miami nuclear-powered attack submarine while it was in dry dock on May 23, and setting a second fire outside the sub on June 16. Fury, who was working on the sub as a painter and sandblaster, initially denied starting the fires, but eventually acknowledged his involvement, the affidavit reads.
Hey CFA Institute – send me my results so I can start drinking.
If the kid couldn't have been legally driving, then clearly he couldn't have driven a car into a house. Case dismissed.
– UBS Legal Quant
CFAI what the fuck!?
to everybody who is on DB at this hour b/c they can't be working when covered in cold sweat – good luck!
Casey Fury: world's greatest porn star name?
I don't understand- you should be drinking regardless. The only question is if it is out of shame or relief.
Send/Receive, Send/Receive, Send/Receive, Send/Receive, Send/Receive, Send/Receive, Send/Receive, Send/Receive, Send/Receive, Send/Receive, Send/Receive, Send/Receive, etc
- CFA L1 candidate
Eh, odds are their life is still gonna suck.
-HBS
the UBS catch 22 – the only way to get out of work early is to burn down the office, but doing that will create massive value and will result in more responsibility and longer hours.
drinking is a no regrets move. shame on you for not having figured that out -> straight to JO&C
fuck you
Mr. Carracher, the state bar forbids me from promising you a big cash settlement. But just between you and me, I promise you a big cash settlement.
Lionel Hutz Esq
I Can't Believe It's A Law Firm™
Springfield Shopping Mall
Memet – very German name.
Congrats Carracher. Just two more times and you'll equal Billy Joel.
Bonobro, go back and annoy ATL. You're not funny.
Fist of Fury – Furiously Masturbating
Dunno about you, but i tend to whack it joyfully, rather than furiously. Actually tends to help dissipate my furiousness, ness.
Watch Casey as he buries his torpedo into lonely Navy housewives burning with desire.
Apparently 40% of you get fired at some point or other, what I wouldn't pay to be in that room when it goes down.
I would be going nuts too if I was that guy…not only is my property destroyed and the cops won't charge the kid/parents, but the Dad has the balls to give ME the finger?? What a prick!
you probably will at some point – we don't pause when the cleaners come in.
i believe the count of LI kids going "joel-ing" is now at 3 this summer.
With regard to the problem of the ratings agencies my patience is now at an end!
Bob, I'd like to invite you and your Dad to join the NYAC; you sound like our kind of folks.
I loved Wedding Crashers!
I think what makes the "teenager not charged for illegal driving because it was not legal for him to be driving" story particularly rich is that he crashed into a criminal attorney's house. Wonder how many calls that guy will be making to people he knows at the courthouse before someone calls the cops in to have a chat?
Really? Vinny Grande, Criminal Atty is "outraged!"
This is coming from a guy who reads "Leo the Late Bloomer" cover-to-cover each night while yelling out to God: "If you love me, why did you make me this way!"
Long Island trash never cease to amaze me.
UBS : Citi :: Pittsburgh : Cleveland
I believe they are still busy working through the Nigerian tests to bother with yours.
Massapequa!
What I want to know, was the officer handling the call down the block sleeping on a neighbor's couch?
Probably driving a slam home from a wedding..
"She raised the possibility that the financial system would be better off if banks ceased market making and hedging"
wow. this is a fed governor.
Today is National Tequila Day, tomorrow is National Hangover Day. I will be attending both events.
Yes it was Mike Tedesco.
Gastarbeiteren mach Frei…
Massapequa. Given.
Wreck the fence by noon, fix LIBOR tonight. Results don't matter. He didn't know better. Fingers all around.
If he beats your house to s** you must acquit.
The link is broken
Is Matt celebrating not taking the CFA by not posting anything today?
Let's see….if you're too young to get a license you can't be charged for any crime committed under that license. Okay boys…hire under 18 year old's to be our bankers, analysts and traders….where back in business and screw the regulators!!! Wahoo!!!!
"Police explained that Carracher wasn’t charged because it was accidental and the youth was too young to have a license."
Also, of course, because his mom is a total MILF and the officers are trying to hit that.