"Reprehensible" Lloyds Bank Agrees To $105 Million Wristslap For Manipulating Libor

Tyler Durden's picture


That will teach them! Having received full credit for for co-operation and suspending some individuals, Lloyds Bank has been fined by the CFTC the staggeringly wrist-slap-like sum of $105 million for the "manipulation, attempted manipulation, and false reporting of Libor." Total fines will amount to around $370 million across all UK and US regulators and all Llloyds divisions. As WSJ reports, the British bank becomes the seventh financial institution to strike a deal with U.S. and U.K. authorities who are conducting a long running probe into allegations of widespread attempts to manipulate Libor. With no less than the head of the Bank of England calling the bank's actions (mainpulating JPY Libor for at least 2 years) "reprehensible," and the CFTC adds individuals bevahior was a "gross breach of trust." Well we are sure after this they will never manipulate another market ever again...


CFTC Explains...

Banks agree to a $105 million settlement and agree to changes in systems and controls


The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order against Lloyds Banking Group plc and Lloyds Bank plc, formerly known as Lloyds TSB Bank plc (Lloyds TSB), bringing and settling charges for acts of false reporting and attempted manipulation of the London Interbank Offered Rate (LIBOR) for Sterling, U.S. Dollar, and Yen committed by employees of Lloyds TSB and HBOS plc (HBOS), which was acquired by Lloyds Banking Group in January 2009. The Order finds that, in a few instances, Lloyds TSB was successful in its manipulation of Sterling LIBOR and Yen LIBOR. The CFTC also brought and settled charges that Lloyds TSB, at times, aided and abetted the attempts of derivatives traders at Rabobank to manipulate Yen LIBOR.


The Order requires Lloyds Banking Group and Lloyds Bank to pay a $105 million civil monetary penalty, cease and desist from their violations of the Commodity Exchange Act, and to adhere to specific undertakings to ensure the integrity of LIBOR submissions in the future.


“By today’s action, Lloyds is being held accountable for serious misconduct,” said Aitan Goelman, CFTC Director of Enforcement. “The CFTC remains committed to taking all actions necessary to ensure the integrity of the markets we oversee.”

As WSJ reports,

The British bank becomes the seventh financial institution to strike a deal with U.S. and U.K. authorities who are conducting a long running probe into allegations of widespread attempts to manipulate the London interbank offered rate, or Libor, and other widely used interest-rate benchmarks.


Lloyds said in a statement: "The group condemns the actions of the individuals responsible for the conduct in question, which it regards as totally unacceptable and unrepresentative of the cultural changes that the group has implemented."

The bank's executives have long argued that their involvement in rate rigging was relatively minor compared other British lenders.

Lloyds's misconduct took place before the existing Lloyds management team took over in 2011. Nevertheless, the fine is a setback to the bank's attempt to rehabilitate its reputation after taxpayer bailouts in 2008 and 2009.

*  *  *

So it appears Lloyds tried the "just the tip" excuse and it worked with a wristslap of a fine and so far no jailtime for anyone involved.

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Mon, 07/28/2014 - 09:08 | 5012198 SandiaMan
SandiaMan's picture


Mon, 07/28/2014 - 09:18 | 5012235 bigdumbnugly
bigdumbnugly's picture

105 mil??

so i wonder what the ROI for lloyds was on this little escapade...

Mon, 07/28/2014 - 09:40 | 5012308 jbvtme
jbvtme's picture

what's a libor?

Mon, 07/28/2014 - 10:47 | 5012537 Four chan
Four chan's picture

who receives these fines levied on the tbtf banks. i haven't seen one red cent.

Tue, 07/29/2014 - 11:21 | 5017820 papaclop
papaclop's picture

You won't see one red cent either. Our involvement with these banks is to bail them out with our money, so they can turn around and screw us some more.

Mon, 07/28/2014 - 11:52 | 5012921 RaceToTheBottom
RaceToTheBottom's picture

A profit center

Mon, 07/28/2014 - 21:06 | 5015384 jez
jez's picture

These fines for illegal activities are just a cost of doing business now, for the banks. And a negotiable cost, too.


Naturally, the news channels never ask why nobody ever goes to prison.


If the CFTC stopped talking about dollar fines and started talking about fines denominated in director-years of prison time, this routine daily illegal activity would be more likely to stop.

Mon, 07/28/2014 - 10:52 | 5012555 williambanzai7
williambanzai7's picture

Mon, 07/28/2014 - 09:10 | 5012207 yogibear
yogibear's picture

Eric Holder and the Just-Us department has the matter all under control.

The banksters always win.

Mon, 07/28/2014 - 09:29 | 5012274 Da Yooper
Da Yooper's picture

Yeppp they get a slap on the wrist


I wonder what this cost the public in $$$$$$$$


not what they were fined


what they stole in $$$$ to get fined

Mon, 07/28/2014 - 09:11 | 5012209 NoDebt
NoDebt's picture

Per day?

Mon, 07/28/2014 - 09:12 | 5012216 Space Animatoltipap
Space Animatoltipap's picture

Indeed, making billions illegally and getting fined some change.

Mon, 07/28/2014 - 09:11 | 5012213 Pumpkin
Pumpkin's picture

The government stamp of approval for corruption is getting cheaper.  I wonder if it's a sign of deflation.

Mon, 07/28/2014 - 09:12 | 5012218 Grumbleduke
Grumbleduke's picture

Everybody needs a hobby, not everyone is in it for market riggin'.

Have you heard of this one:


  • Eric McLean Slighton 'spent hours drinking in the San Francisco airport lounge before posing as an agent at security on Tuesday'
  • He 'stole a pair of blue gloves to look the part and led two women into a private screening area for a pat down'
  • Slighton has worked at Barclays Capital and Deutsche Bank in Hong Kong



Mon, 07/28/2014 - 09:13 | 5012220 McCormick No. 9
McCormick No. 9's picture

That'll teach 'em.

Mon, 07/28/2014 - 09:13 | 5012221 thatthingcanfly
thatthingcanfly's picture

$105 mill, AND they have to meet a quota of at least 5 bankers jumping from tall buildings per month for the next year?

Mon, 07/28/2014 - 09:24 | 5012259 BlindMonkey
BlindMonkey's picture

Nice comment. Fit your pseudonym very well.

Mon, 07/28/2014 - 10:38 | 5012499 HardwoodAg
HardwoodAg's picture

So each month five workers for janitorial services will get huge promotions, and their choice of wings or a nail gun. HR will have to be fast on their feet to make sure the new ' Life insurance policies' get upgraded.

Mon, 07/28/2014 - 14:17 | 5012898 XitSam
XitSam's picture

Killing bankers is apparently not enough. Nothing will change until death cards are found beside their bodies. And the bodies of the regulators as well.

Mon, 07/28/2014 - 09:13 | 5012222 EscapeKey
EscapeKey's picture

The group condemns the actions of the individuals responsible for the conduct in question, 


Mon, 07/28/2014 - 09:13 | 5012223 Dr. Engali
Dr. Engali's picture

105 million? ...... Ridiculous. Fuckers can dig that much up out of the sofa.

Mon, 07/28/2014 - 09:14 | 5012226 financialrealist
financialrealist's picture

On a relative basis this is a parking ticket

Mon, 07/28/2014 - 09:16 | 5012232 jmcadg
jmcadg's picture

Take that BNP, take that Deutschebank.

Now if I was in either of these banks I would be looking for ways to turn these fuckers over.

Just a thought.

Mon, 07/28/2014 - 09:52 | 5012344 Crash N. Burn
Crash N. Burn's picture

Take that BNP, take that Deutschebank.


Yep, appears London banks get the Wall Street rate. I'm shocked /sarcasm off

Mon, 07/28/2014 - 09:16 | 5012236 techstrategy
techstrategy's picture

The only way to end the abuse of financial sector players is to exit financial assets for real assets.  Start by converting obvious bubbles to cash and gold (ideally physical in both placed).  Let them hold all the assets that depend upon trust and we'll hold all the real assets.  That way, no matter when the games unravel, they'll be holding the assets that will get crushed and this time, they will absorb all the pain.  Every day, convert some AMZN, NFLX, TSLA, or today's bubble due jour (Zillow) into both cash and gold.

Mon, 07/28/2014 - 12:01 | 5012973 Four chan
Four chan's picture

by george i think you've got it!

Mon, 07/28/2014 - 09:24 | 5012262 medium giraffe
medium giraffe's picture

I'm shocked at this outcome! SHOCKED!!!

Mon, 07/28/2014 - 10:50 | 5012544 813kml
813kml's picture

[Intraoffice memo to all Lloyds Bank management]



As internal reprimand for being caught raping and pillaging, Dom Pérignon will no longer be used to flush urinals in the executive lavatories.


António Horta-Osório
Lloyds Bank, CEO

Mon, 07/28/2014 - 09:31 | 5012281 Ban KKiller
Ban KKiller's picture

Cigars, cocaine and whores all around! 

Mon, 07/28/2014 - 09:34 | 5012290 zipit
zipit's picture

And write 100 times, "I will never again get caught scamming people out of their money." 

Mon, 07/28/2014 - 09:39 | 5012301 vegan
vegan's picture

With 2013 revenue of £21B, that fine is about one day's revenue. There are people who pay more than that for parking tickets.

Mon, 07/28/2014 - 09:41 | 5012305 vegan
vegan's picture

I'd have to guess that the civil suits against them will start coming... soon.

Mon, 07/28/2014 - 09:42 | 5012311 kill switch
kill switch's picture

These guy's don't give a fuck because the MSM will never cover it and most dumb asses around the world have no idea what LIBOR is..If this was covered by all media not just the financial media 24/7 and articulation as to the trillions that were stolen then maybe..But when the crime was committed in stealth=$105 mil....That's all folks,,,move along.

After 2008 I thought the collapse would take place around 2010 but my miscalculation was that the central banks AROUN THE WORLD would engage in total corruption law breaking and fraud without any consequence, and oh my silver /gold would be smashed....It's all good...........

Mon, 07/28/2014 - 09:44 | 5012317 limecat
limecat's picture

With 71B shares out there, the total fine of £218M amounts to 0.3 GBX per share. Half a percent or thereabouts. Seems a reasonable fine to me for fraud. What's all the fuss about?

Mon, 07/28/2014 - 09:46 | 5012323 Reaper
Reaper's picture

Does the fine cover the salaries and expenses of the investigator/prosecutors? How much is left for the investigator/prosecutor's bonuses?

Mon, 07/28/2014 - 09:58 | 5012361 TheBird
TheBird's picture

This was a "scandal" not worth the paper it was written on. Manipulation of a FAKE rate? Really? And by how many basis points? The horror! Perhaps regulators and others should focus their efforts more on manipulation of real rates.

Mon, 07/28/2014 - 10:08 | 5012396 overmedicatedun...
overmedicatedundersexed's picture

we can all sleep well tonight knowing justice was served....disgust is all I have left, outrage  and anger has been burned out like ebola in an african village.

Mon, 07/28/2014 - 10:16 | 5012424 smacker
smacker's picture

I take your point. But the LIBOR rate directly affects the perceived trustworthiness of a bank in the money markets. If the banks had reported their true borrowing rates (much higher) they would have suffered a severe borrowing crises.

So, although it's not a real rate, it's important for the banks to maintain their phony façades.

Mon, 07/28/2014 - 10:07 | 5012391 p00k1e
p00k1e's picture

Most folks do not understand libor.

Study the laws.  Find ways to cheat and steal, it's all OK.   It’s OK.  

Mon, 07/28/2014 - 10:10 | 5012402 smacker
smacker's picture

"With no less than the head of the Bank of England calling the bank's actions (mainpulating JPY Libor for at least 2 years) "reprehensible,""

As the new BoE Governor, Mark Carney is free to make such statements. What he won't be allowed to say is that his predecessor was almost certainly fully aware of it and probably authorised it through his Deputy at the time. Anything else is inconceivable.

Mon, 07/28/2014 - 10:16 | 5012425 vyeung
vyeung's picture

its a farking joke!

Mon, 07/28/2014 - 10:24 | 5012455 hangemhigh77
hangemhigh77's picture

Well if Bart Chilton and his hair were at the CFTC they would have had Hell to pay. Probably would have got them for another million. I wonder who's Swiss Bank account the fine went to.

Mon, 07/28/2014 - 10:25 | 5012459 orangegeek
orangegeek's picture

who cares about the fines?


just let us know how many banksters jumped.

Mon, 07/28/2014 - 10:27 | 5012466 TrustWho
TrustWho's picture

You want to stop fraud?  Throw the crimminals who executed the evil plans and the people who created the evil plans INTO JAIL WITH THE WORST--because their evil caused more harm to society than petty theives, murders and drug dealers do.

Mon, 07/28/2014 - 10:27 | 5012467 Watson
Watson's picture


From Bloomberg
Lloyds has also paid a further 7.8 million pounds in compensation to the Bank of England after the actions of its traders reduced the fees the central bank received from one of its emergency-rescue packages.

Now see below (from Bloomberg discussion):

See if you can spot the fault in the reasoning:

Everyone has known for some time that the Libor fixings were corrupt but, if you were on the losing side of a derivative trade involving Libor, you wouldn't get far in Court action (to reduce) your losses, because the complex way Libor is set meant that, until now, you could not quantify your loss to one individual bank's wrongdoing.

But the BoE exposures in setting guarantee's etc., presumably _is_ public knowledge.
So, now you _can_ quantify your losses, by scaling your exposures against those of the BoE.

Please let us be clear: this option is available to _everyone_ that has a Libor-related contract, even if the bank counterparty was not Lloyds.
Of course, if you have a swap against Lloyds, presumably you can now walk away from the deal.

Why is the Lloyds price unaffected?


Mon, 07/28/2014 - 10:28 | 5012468 vyeung
vyeung's picture

BNP gets how much? Loyld's clearly done alot more damage than BNP (except we all know they were helping the BRICS to dump US Treasuries). This is like fining someone $1 for stealing $Trillions. Its a farking joke.

Mon, 07/28/2014 - 11:03 | 5012616 Frankie Carbone
Frankie Carbone's picture

Boy ohh boy, that'll show em'!

Equivalent scenario for you and I.

Cop: Sir, I pulled you over for going 147 in a school zone. I'm afraid the fine is going to be pretty steep.

Frankie: How much?

Cop: That'll be $1,500.

Frankie's Lawyers: How about "A buck fifty three, with no admission of guilt"?

Cop: Done!

Mon, 07/28/2014 - 11:20 | 5012721 Bankster Kibble
Bankster Kibble's picture

$1.53 plus $500 back-hand payment to the cop to look the other way.  Still, $501.53 makes a nice discount down from $1,500 so it is a good deal for the scoff-law.

Mon, 07/28/2014 - 11:09 | 5012641 Bankster Kibble
Bankster Kibble's picture

So what embarrassing information did Lloyds have on members of the CFTC to get such a low fine?  Wish I was a fly on the wall during THOSE negotiations.

Mon, 07/28/2014 - 11:17 | 5012696 JohninMK
JohninMK's picture

The UK Government has another large block of Lloyds shares to sell off probably in the Autumn (Fall), so wants Lloyds profits as high as possible.

Pure coincidence?

Oh, and as the Government owns part of Lloyds it will be fining Lloyds and then getting part of it back when the fine arrives. Nice.

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