Barclays Is 'Truly Sorry' It Got Caught Manipulating Libor Though Not Sorry Enough To Make Amends In Person

An ad in the paper will have to suffice. Barclays has made a public apology to customers and clients, saying they have “been let down” by the bank. “We are truly sorry for what has happened,” Barclays said in a advertisement published in several British newspaper today, including the Financial Times, the London-based Times and the Guardian. “You are the lifeblood of our business, and we will not allow ourselves to be distracted from what really matters -- delivering for you, day in and day out,” the statement, signed by Chairman Marcus Agius, says. “I also thank you for your business. It is our responsibility to earn the right to retain it.” Barclays Says ‘Truly Sorry’ For Letting Down Customers, Clients [Bloomberg] Barclays Makes Public Apology [HIC]
Author:
Publish date:
Updated on

An ad in the paper will have to suffice.

Barclays has made a public apology to customers and clients, saying they have “been let down” by the bank. “We are truly sorry for what has happened,” Barclays said in a advertisement published in several British newspaper today, including the Financial Times, the London-based Times and the Guardian. “You are the lifeblood of our business, and we will not allow ourselves to be distracted from what really matters -- delivering for you, day in and day out,” the statement, signed by Chairman Marcus Agius, says. “I also thank you for your business. It is our responsibility to earn the right to retain it.”

Barclays Says ‘Truly Sorry’ For Letting Down Customers, Clients [Bloomberg]
Barclays Makes Public Apology [HIC]

Related

At Some Point In The Future, BlackRock Might Sue Over Libor Manipulation

Or it might not. No one can say at this time. Charlie Gasparino reports: BlackRock has $240 billion in money market assets, much of which is priced off of Libor. Thus even artificially depressing Libor a bit could mean that the firm’s customers missed out on billions upon billions in investment returns. A BlackRock spokeswoman told FOX Business: “We are closely following the investigations as well as related litigation to assess the full implications and possible impact these events may have had on our clients and the cash markets. The implications of the various investigations and litigation are complex and it will be some time before greater clarity emerges.” Indeed, people inside BlackRock say assessing damages won’t be easy. First it’s unclear just how much the manipulation cost fund investors since the evidence so far shows that banks like Barclays only depressed their Libor submissions during certain periods of time, particularly during the financial crisis, when they didn’t want to alert investors that they were being charged higher interest rates to borrow money. BlackRock Mulls Legal Action Amid Libor Scandal [FBN]

Bonus Watch '12: Barclays Employees To Get Paid (Or Not) For Being 'Good Citizens'

Breaking the speed limit in a school zone, for example, will cost you a couple mill, while volunteering with your local Boy Scouts chapter to help the troops earn their "Libor Manipulation" badges will translate to a few extra zeros on payday. Barclays' new chief executive said he will pay employees based in part on whether they are good citizens, as the British bank tries to restore its tarnished reputation. Within the next six to 12 months, Barclays will devise a "balance scorecard" with metrics that measure performance across a range of areas, including how the actions of executives affect the environment, Antony Jenkins said in a brief interview on Sunday at the Clinton Global Initiative...Jenkins, who previously ran Barclays' business and retail banking division, said he managed the unit with a scorecard that rated employees on how their actions affected all stakeholders, including investors, customers, other employees and "society." The scorecard includes a "citizenship" component, according to a bank spokesman. Barclays New Chief Ties Compensation To Societal Goals [Reuters]

Banks Now Trying Extra Hard To Avoid Making The Rookie Mistakes That Mean Getting Caught Committing Fraud

Remember, earlier this summer, when a whole bunch of banks were sued over allegations their employees manipulated Libor? And Bob Diamond, CEO of the first, and so far only, bank to settle with regulators, lost his job, as did a bunch of his colleagues? And it was suggested that Barclays's offenses were but a drop in the bucket compared with those of UBS? And experts projected that this whole thing could cost the banks being investigated (of which there are many) tens of billions of dollars to make go away? And Nellie Diamond stopped Tweeting? As much fun as that's all been, a lot of firms would like to avoid going through it again, and to that end, have asked their compliance teams to run some workshops teaching employees how to keep things on the straight and narrow. For instance, while you might think that people would have mastered email by this point on the evolutionary chart-- specifically, that it never goes away and might be read again-- you would think wrong!  So the point is being hammered home in remedial electronic correspondence classes, particularly to those who'd previously not seen an issue with writing stuff like, "Anything for you, Big Boy" as a response to the request "Can you manipulate Libor for me today when you've a sec?" Also on the schedule-- mock happy hours with the team for members of the staff who can never seem to remember the appropriate response for when you're out at Punch Tavern and someone brings up "Holly with the cans who did me a solid by shaving 45 basis points off our submission." "Everyone is more paranoid, that's for sure," said one department head at a European investment bank, where the trading floor is festooned with posters reminding staff to report any suspicious behaviour. At his bank and at least one other European firm, executives said they were being asked to take part in an increasing number of behavioural coaching sessions, including simulations of pub outings. These were mainly done via webcasts, where participants act out conversations with colleagues where the talk turns to clients or office gossip, two bankers said. "You have to turn around and say, 'No, let's not talk about that'," said one. Culture Clean Up Follows Bankers To Bar [Reuters]

RBS Trader Whose Instant Messages Clearly Show Him (Allegedly) Engaging In Libor Manipulation Not Going Down Without A Fight

One thing that most people probably agree on is that having their instant messages, e-mails, and phone calls end up court would be cause for at least a little embarrassment. Everyone's thrown in an emoticon they aren't proud of, some of us have used company time to chat with significant others about undergarments, and the vast majority of workers have spent a not insignificant amount of the workday talking shit about their superiors. Of course, the humiliation gets ratcheted up a notch in the case of people who 'haha' (and in extreme circumstances "hahahah') their own jokes* which, just for example, involve habitual Libor manipulation. Tan Chi Min knows what we're talking about: “Nice Libor,” Tan said in an April 2, 2008, instant message with traders including Neil Danziger, who also was fired by RBS, and David Pieri. “Our six-month fixing moved the entire fixing, hahahah.” And while having such an exchange become public would be tremendously awkward for most, you know what's really 'hahaha' about this whole thing is that 1) Tan was the one who wanted people to read the above, which was submitted as part of a 231-page affidavit earlier this month and 2) He's trying to use it as evidence that he didn't deserve to be fired. The conversations among traders at RBS and firms including Deutsche Bank AG illustrate how the risk of abuse was embedded in the process for setting Libor, the benchmark for more than $300 trillion of securities worldwide......Tan, the bank’s former Singapore-based head of delta trading for Asia, [is] suing Britain’s third-biggest lender by assets for wrongful dismissal after being fired last year for allegedly trying to manipulate the London interbank offered rate, or Libor. Tan, who 'allegedly' tried to manipulate the London interbank offered rate, also included this conversations as part of his defense: “What’s the call on Libor,” Jezri Mohideen, then the bank’s head of yen products in Singapore, asked Danziger in an Aug. 21, 2007, chat. “Where would you like it, Libor that is,” Danziger asked, according to a transcript included in Tan’s filings. “Mixed feelings, but mostly I’d like it all lower so the world starts to make a little sense,” another trader responded. “The whole HF world will be kissing you instead of calling me if Libor move lower,” Tan said, referring to hedge funds. “OK, I will move the curve down 1 basis point, maybe more if I can,” Danziger replied. And this: In another conversation on March 27, 2008, Tan called for RBS to raise its Libor submission, saying an earlier lower figure the bank submitted may have cost his team 200,000 pounds. “We need to bump it way up high, highest among all if possible,” Tan said. Tan also asked for a high submission in an Aug. 20, 2007, instant message to Scott Nygaard, global head of RBS’s treasury markets in London. “We want high fix in 3s,” Tan said in the message. “Neil is the one setting the yen Libor in London now and for this week and next.” Also this: “It’s just amazing how Libor fixing can make you that much money or lose if opposite,” Tan said on an Aug. 19, 2007, conversation with traders at other banks, including Deutsche Bank’s Mark Wong. “It’s a cartel now in London.” And this philosophical one, for good measure: “This whole process would make banks pull out of Libor fixing,” Tan said in a May 16, 2011, chat with money markets trader Andrew Smoler. “Question is what is illegal? If making money if bank fix it to suits its own books are illegal... then no point fixing it right? Cuz there will be days when we will def make money fixing it.” The defense rests. RBS Instant Messages Show Libor Rates Skewed for Traders [Bloomberg] *Although actually people who do this probably don't even have the good sense to be ashamed of themselves.