Discrepancies in global benchmark penalties

Author: | Published: 21 May 2015

A review of rate rigging investigations and fines reveals potential discrepancies in global enforcement

Sterling Libor submitter: "It's very cold here so it must be very cold where you are"

Sterling desk submitter: "It's really cold but there is sunshine, so it's quite nice"

Sterling Libor submitter: "It's cold but there is a beautiful blue sky. Lovely. Perfect conditions mate"

This is surely the most mundane of the many exchanges between traders, managers and submitters published in the course of investigations into certain financial firms' alleged rigging of the interbank offered rates (Ibor) and foreign exchange rates (forex). Indeed, it is in stark contrast to the rest of the exchanges, which are by turns frantic, desperate, triumphalist and macho. It is of course entirely appropriate for the sterling desk to have detailed discussions about the weather. The exchange does, however, emphasise an interesting element of the alleged misconduct; the international...