HSBC INVESTIGATED FOR MANIPULATING INTERBANK LENDING RATES
- The Royal Bank of Scotland and HSBC are being investigated by the Swiss authorities over allegations they manipulated the interbank lending rates which may have distorted the price of trillions of dollars of securities.
The Swiss Competition Commission (COMCO) said it was looking into 12 banks, including RBS, HSBC, Citigroup and Bank of Tokyo-Mitsubishi, after receiving information that derivative traders may have colluded to set the London Interbank Offered Rate (LIBOR) and Tokyo Interbank Offered Rate (TIBOR).
Regulators from America, the European Union and the UK are already investigating whether banks worked together to keep interbank lending rates down to reduce borrowing costs and cap investor panic during the financial crisis.
The other banks involved in the inquiry include Credit Suisse, Deutsche Bank, JP Morgan, Mizuho Financial Group, Rabobank, Societe Generale, Sumitomo, Mitsui Banking Corporation and UBS.
Libor is the rate banks say they charge each other to borrow money, Checking Account Online reported.
- 1865 Birth of Vasili Ghorghanyan (musicologist). He died in 1934.
- 1919 The Armenian National Council of Gharabagh request officers of the Allied Army to effect the withdrawal of Turkish (Azeri and Ottoman) forces from Gharabagh, and create a local autonomous unit under British supervision. The request is denied.
- 1945 Conference of the leaders of the Allies: Franklin Roosevelt, Winston Churchill and Josef Stalin during the Second World War, in Yalta (Crimea). The three Allies and France would occupy Germany, and the Soviet Union would start a war against Japan.