Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Big Banks Fined $2.3B Over Illegal Libor Cartels, More Fines On The Way

forbes.com | January 16, 2015

Libor rigging allegations continue to cost the world’s big banks.

The European Commission, the region’s antitrust regulators, hit eight big financial firms with $2.3 billion in fines for their alleged roles in the global Libor-rigging scandal. The settlement is based on antitrust laws and accuse the banks of participating in cartels.

Among the banks fined are two U.S. banks; JPMorgan will pay $107 million and Citigroup will cough up $95 million.

Those fines were among the smallest shelled out to the various banks. Deutsche Bank’s $633 million fine is the largest followed by Société Générale’s $606 million.

The range of fines was determined by a few factors including how long each bank participated in what the Commission calls “illegal cartels.”

JPM’s fine, for instance, is based on a month’s participating in the cartels in Yen Libor rates, according to the regulator.

In statement, the bank noted that the “settlement makes no finding that JPMorgan Chase management had any knowledge or involvement in the conduct at issue, or that the traders’ actions had any impact on the firm’s LIBOR submissions or the published LIBOR rates.”

Mark Patterson, a professor at Fordham University School of Law, notes the difference between the European settlement which goes after banks for antitrust violations and U.S. settlements that go after banks for fraud.

“Europe’s antitrust approach is a better match for the illegal conduct, which involves conspiracies, not just fraud. The antitrust approach also makes it easier for private plaintiffs to bring damages actions,” Patterson notes.

Libor rigging news broke in June 2012 after Barclays paid up $450 million for trying to manipulate the rates at which banks lend to one another.

It was disclosed then that dozens of banks around the world were involved in alleged rigging of the rate. The rates are tied to some $800 trillion of financial instruments and products like mortgages and credit cards.

Since the Barclay’s settlement (which cost CEO Bob Diamond his job) UBS and RBS have also faced fines from US and European regulators. UBS became the second bank to settle Libor manipulation charges agreeing to pay $1.5 billion to US, UK and Swiss authorities. Shortly after, Royal Bank of Scotland agreed to pay $615 million to settle U.S. and U.K. rate-rigging charges.

The Libor problems aren’t over yet for many banks. JPM noted in its statement that the Commission continues to investigate it in connection with Euro-interest-rate derivatives referenced to the EURIBOR benchmark rate.

“JPMorgan Chase has cooperated fully with the European Commission throughout its investigation and does not believe that the firm engaged in wrongdoing with respect to the EURIBOR benchmark. The company intends to defend itself fully,” the bank said.


Nancy Duffy McCarron, CBN 164780
Attorney, Real Estate Broker, BBB Arbitrator, CA Notary Public
Certified Forensic Loan Auditor, Property Manager


Back to Letters from the Editor Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo


Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package