Article: Pension Fund Drops Suit Against Tesla Over $1.8B Bond Offer

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Pension Fund Drops Suit Against Tesla Over $1.8B Bond Offer

Rachel Stone, 16 April 2021

A pension fund voluntarily ended its proposed class action against Tesla and its multibillionaire founder, Elon Musk, which claimed the automaker and a group of big banks acting as underwriters misled investors on a $1.8 billion bond offering.

Inter-Local Pension Fund GCC/IBT has bowed out of its securities fraud suit in California federal court following a decision in the Ninth Circuit in March not to rehear a related case, according to a notice filed Thursday. Continue reading “Article: Pension Fund Drops Suit Against Tesla Over $1.8B Bond Offer”

Article: Turkey fines firms over short selling irregularities

Article - Academic, Publications

Turkey fines firms over short selling irregularities

Reuters, 01 April 2021

Turkey fined 10 securities firms for up to 7.8 million lira ($1 million) in relation to irregularities in short-selling transactions, the country’s Capital Markets Board said in its weekly bulletin on Thursday.

Fines of various amounts were imposed on firms including Merrill Lynch International, JP Morgan Securities, Goldman Sachs International, Credit Suisse Securities Europe and Barclays Capital Securities, the statement said.

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Article: Wall Street Giants Beat Treasury Auction Rigging MDL

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Wall Street Giants Beat Treasury Auction Rigging MDL

Dean Seal, 30 March 2021

A New York federal judge ruled Wednesday that he has yet to see any direct evidence that Wall Street banks including Goldman Sachs and Credit Suisse conspired to manipulate the $14 trillion market for securities issued by the U.S. Treasury Department.

U.S. District Judge Paul G. Gardephe dismissed long-running multidistrict litigation accusing a group of banks that also included JPMorgan Chase and Morgan Stanley of rigging auctions for Treasury Department bonds and other securities, on top of reducing competition in a secondary market for those securities. Continue reading “Article: Wall Street Giants Beat Treasury Auction Rigging MDL”

Article: A “Very Surprised” JPMorgan Calculates The Damage From The Archegos Collapse

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A “Very Surprised” JPMorgan Calculates The Damage From The Archegos Collapse

TYLER DURDEN,  30 March 2021

Unlike the devastating London Whale debacle in 2012, which was all JPMorgan eventually drawn and quartered quite theatrically before Congress (and was a clear explanation of how banks used Fed reserves to manipulate markets, something most market participants had no idea was possible), this time JPMorgan was nowhere to be found in the aftermath of the historic margin call that destroyed hedge fund Archegos. Which is may explain why JPMorgan bank analyst Kian Abouhossein admits he is quite “puzzled” by the recent fallout from the Archegos implosion (or maybe JPM simply was not a Prime Broker of the notorious Tiger cub), which however does not prevent him from trying to calculate the capital at risk from the Archegos collapse. Continue reading “Article: A “Very Surprised” JPMorgan Calculates The Damage From The Archegos Collapse”

Article: Credit Suisse Faces Additional Charges over FX Market Rigging

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Credit Suisse Faces Additional Charges over FX Market Rigging

Arnab Shome, 22 March 2021

The European Commission has slapped an extra antitrust charge sheet against Credit Suisse for its involvement in the manipulation of foreign exchange (forex) markets, according to a Bloomberg report.

The Swiss lender confirmed the fresh charges in addition to the earlier charges, which were introduced in July 2018 for sharing crucial market-related information in chatrooms. However, the bank denied all allegations against it.

Looking Forward to Meeting You at iFX EXPO Dubai May 2021 – Making It Happen!

“Credit Suisse continues to believe that it did not engage in any systemic conduct in the FX markets which violated the European Union’s competition rules, and is contesting the EC’s case,” the bank said in a statement.

The EU regulator’s original allegations named several major banks for their part in manipulating the currency benchmarks. Though most of the lenders settled with the regulator, Credit Suisse remains adamant pushing its innocence.

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Article: Citi Must Face Former Trader’s Malicious-Prosecution Lawsuit

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Citi Must Face Former Trader’s Malicious-Prosecution Lawsuit

Bob Van Voris, Jenny Surane and Michael Leonard, Bloomberg News, 12 March 2021

(Bloomberg) — One of three British traders acquitted of using an online chatroom to fix prices in the foreign exchange market can go forward with a lawsuit claiming that Citigroup Inc. “fabricated” a baseless case against him, a judge ruled.

U.S. District Judge Victor Marrero on Thursday rejected the bank’s attempt to have the case dismissed. Former Citigroup trader Rohan Ramchandani sued in 2019 claiming damages of $112 million.

Read More: Citigroup Framed Me, Acquitted Forex Trader Claims in Suit

The ruling clears the way for Ramchandani, a former London-based trader, to move forward with the malicious-prosecution suit, which he brought in New York against a group of the bank’s affiliates after his acquittal.

“Mr. Ramchandani’s claims of malicious prosecution are without merit and we will contest them vigorously,” Danielle Romero-Apsilos, a spokeswoman for the bank, said in an emailed statement.

A Manhattan federal jury in October 2018 found Ramchandani and two other British traders working for other banks — a group dubbed “the Cartel” — not guilty of conspiring through online chatrooms to manipulate the $5.1-trillion-a-day foreign exchange market.

Citigroup, JPMorgan Chase & Co., Barclays Plc and Royal Bank of Scotland Group Plc pleaded guilty to currency manipulation in 2015 as part of a $5.8 billion settlement with the DOJ.

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Article: Goldman Faces New Forex Rigging Suit From Currency Trader

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Goldman Faces New Forex Rigging Suit From Currency Trader

Richard Crump, 12 March 2021

Goldman Sachs is being sued in London over allegations that its traders manipulated foreign exchange markets for profit, in the latest lawsuit filed by a British currency investment firm over trade front-running.

ECU Group alleges that traders at Goldman Sachs International misused its confidential information to make secret profits by trading ahead of foreign exchange transactions by the British company, an illegal tactic known as front-running, according to the High Court claim filed in November but only recently made public. Continue reading “Article: Goldman Faces New Forex Rigging Suit From Currency Trader”

CEO: Richard S. Fuld Jr.

CEO, People

Richard Severin Fuld Jr  born April 26, 1946) is an American banker best known as the final Chairman and Chief Executive Officer of major investment Bank Lehman Brothers.

Fuld held this position from the firm’s 1994 spinoff from American Express until 2008. Lehman Brothers filed for bankruptcy protection under Chapter 11 on September 15, 2008, and subsequently announced the sale of major operations to parties including Barclays Bank and Nomura Securities. Continue reading “CEO: Richard S. Fuld Jr.”

Article: Banks Can Argue Funds Passed On UK Forex Rigging Losses

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Banks Can Argue Funds Passed On UK Forex Rigging Losses

Christopher Crosby, 25 February 2021

Institutional investors suing some of the world’s largest banks for manipulating the foreign exchange market will have to prove their losses were not passed on to others after a London court ruled on Thursday that the issue has to be determined at trial.

Nigel Teare, sitting as a judge at the High Court, refused to knock down the legal defense raised by Barclays, CitiBank, HSBC and other lenders to fight claims for damages for allegedly manipulating benchmark rates in the forex market.. Continue reading “Article: Banks Can Argue Funds Passed On UK Forex Rigging Losses”

Article: The LIBOR Scandal

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The LIBOR Scandal

Jason Fernando, 24 February 2021

What Is the LIBOR Scandal?
The LIBOR Scandal was a highly-publicized scheme in which bankers at several major financial institutions colluded with each other to manipulate the London Interbank Offered Rate (LIBOR). The scandal sowed distrust in the financial industry and led to a wave of fines, lawsuits, and regulatory actions. Although the scandal came to light in 2012, there is evidence suggesting that the collusion in question had been ongoing since as early as 2003.

Many leading financial institutions were implicated in the scandal, including Deutsche Bank (DB), Barclays (BCS), Citigroup (C), JPMorgan Chase (JPM), and the Royal Bank of Scotland (RBS).

As a result of the rate fixing scandal, questions around LIBOR’s validity as a credible benchmark rate have arisen and it is now being phased out. According to the Federal Reserve and regulators in the U.K., LIBOR will be phased out by June 30, 2023, and will be replaced by the Secured Overnight Financing Rate (SOFR). As part of this phase-out, LIBOR one-week and two-month USD LIBOR rates will no longer be published after December 31, 2021. Continue reading “Article: The LIBOR Scandal”

Article: Barclays Escapes UK Municipalities’ Libor Loan Suits

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Barclays Escapes UK Municipalities’ Libor Loan Suits

Joanne Faulkner, 22 February 2021

A judge said on Monday that eight local councils in England cannot get out of Libor-linked loans they signed with Barclays before the bank’s involvement in the rate-rigging scandal was revealed because they could not prove the lender had acted dishonestly. 

High Court Judge Sara Cockerill said that two claims focusing on how interest rates tied to the loans were influenced by the London Interbank Offered Rate had “no real prospect of success.” The local authorities could not prove that Barclays had knowingly made false representations when it sold the swaps between 2006 and 2008, the judge said. Continue reading “Article: Barclays Escapes UK Municipalities’ Libor Loan Suits”

Article: British banking giant Barclays sues BR Shetty to recover $130m

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British banking giant Barclays sues BR Shetty to recover $130m

Michael Fahy, 25 February 2021

Banking giant Barclays is seeking $130 million from embattled Indian businessman BR Shetty through a claim filed in the Dubai International Financial Centre Courts.

The bank in a court filing says its claim “is in relation to an unlimited guarantee” provided by Mr Shetty in January 2015 for funding extended to UAE Exchange, part of the businessman’s Finablr money exchange and digital payments group.

“Despite certain liabilities becoming due and payable by the defendant to the claimant under the guarantee, the defendant has failed to pay these,” according to the court filing. Continue reading “Article: British banking giant Barclays sues BR Shetty to recover $130m”

Article: Five Banks Settle LIBOR Manipulation Suit for $22 Million

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Five Banks Settle LIBOR Manipulation Suit for $22 Million

Meg Slachetka, 13 October 2020

Last week, Judge Naomi Buchwald of the Southern District of New York provided final approval of a nearly $22 million settlement between a class of indirect investors and five Wall Street banks that the plaintiff investors accused of manipulating the London Interbank Offered Rate (LIBOR) in violation of the Sherman Act. The plaintiffs are over-the-counter (OTC) investors who indirectly interacted with the defendant banks via interest rate swaps and other transactions.

These plaintiffs made purchases from other banks that are not defendants in the case; the five settling defendants are JPMorgan, Citibank, Bank of America, HSBC, and Barclays. The suit is one of many filed after Barclays admitted in 2012 that it had manipulated LIBOR. Continue reading “Article: Five Banks Settle LIBOR Manipulation Suit for $22 Million”

Subject: Manish Mehta

Subject of Interest

Manish Mehta is a member of BlackRock’s Global Executive Committee. He is a Managing Director and co-chairs its Talent Sub Committee, as well as the firm’s Human Capital Committee. Prior to that Mehta was the Global Head of Markets & Investments for ETF and Index Investments, and previously the Chief Operating Officer for iShares. Mr. Mehta joined BlackRock in 2009 as part of its acquisition of Barclays Global Investors (BGI). Earlier in his career, Mehta was with the Boston Consulting Group He began his career with Accenture where he managed the design and implementation of enterprise technology solutions for clients in the pharmaceutical and insurance industries. Mehta has an MBA from the Wharton School at the University of Pennsylvania, and a B.S. in Electrical Engineering and Computer Sciences from the University of California, Berkeley.

Biography

Black Rock, Inc 

Subject: Derek Stein

Subject of Interest

Derek Stein is a member of BlackRock’s Global Executive Committee. He is a Senior Managing Director and is Global Head of Technology & Operations. Stein’s service with the firm dates back to 2005, including his years with Barclays Global Investors (BGI), which merged with BlackRock in 2009. Before joining BGI, Stein was an executive vice president at Knight Capital. Prior to that, Stein spent 10 years with Merrill Lynch & Co. Earlier, he spent several years as a senior manager with Ernst and Young’s capital markets and banking management consulting practice. Before moving to the U.S. from South Africa, Stein managed a long/short equity fund and was a practicing Chartered Accountant. Stein earned a BA degree in computer science and an MS degree in finance, both from the University of Witwatersrand in South Africa.

Biography

Black Rock, Inc