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UBS Had Libor-Rigging Instruction Manual, Former Trader Claims
Just like in the case of Goldman's first of its kind MBS settlement which unleashed over $200 billion in legal charges against the US banking system (an IRR of about 1% relative to the criminal gains) and which in turn cast all the blame on the infamous Fabrice Tourre who was the solitary scapegoat for all of Goldman's Abacus transgressions, so when it comes to Libor rigging at one of the biggest culprits, Swiss bank UBS, all the senior executives are trying to put all the blame on 35-year old Tom Hayes who is the centerpiece of the prosecution's case against Libor manipulator.
The only problem: Hayes won't go down without a fight and unlike Tourre who may well have been promised a Swiss bank account with many zeroes in it on the other side, Hayes is fighting back and making it very clear that it wasn't just him who was rigging Libor. It was everyone. And everyone knew about it, from the traders on to the very top.
His proof: a Libor "manipulation" manual, presented as evidence in court.
According to Bloomberg, Hayes told prosecutors in 2013 that UBS Group AG distributed "an instruction manual on fixing Libor" to suit their trading positions. The Swiss bank’s e-mailed “Guide to Publishing Libor Rates,” which was shown to jurors by prosecutors in London Thursday, included an instruction for traders to adjust their submissions depending on their “delta/fixing position.”
“If 3m Libor” exposure “is 4,125 this means we are receiving” and “therefore we want to increase the fixing by 25 basis points,” according to the internal UBS guide. “If the number is negative then vice-versa.”
Hayes, the first person to stand trial for allegedly manipulating the London interbank offered rate, told prosecutors the document was evidence that Libor-rigging was standard operating procedure during his time at UBS.
The problem was exacerbated because the managers who oversaw Libor submissions also had large trading positions based on the benchmark, Hayes added.
“This is where what UBS is doing in terms of throwing individuals under the bus is really wrong,” Hayes told the Serious Fraud Office in 2013.
Hayes worked at UBS from 2006 to the end of 2009 before moving to Citigroup Inc. The 35-year-old is accused of eight counts of conspiracy to manipulate Libor, a benchmark for financial products worldwide.
Will Hayes' quest to diffuse responsibility and bring down more senior executives with him succeed? Hardly. Case in point: the man who worked alongside Goldman's Fab Tourre and directly supervised his work, just launched a hedge fund! Also from Bloomberg:
Egol, who wasn’t accused of any wrongdoing in the Abacus matter, testified at Tourre’s trial in 2013. Tourre was found liable for failing to disclose to investors in the security that hedge fund Paulson & Co. helped select the mortgage-backed assets underlying it. Egol, who earned an MBA in finance from the University of Chicago, worked at Goldman from 1998 until early last year.
Speaking of which, does Egol's brand new hedge fund, Firebreak Capital, still accept capital? After all, if there is anyone who can make money in any market, it is the person who only bets on a "sure thing", gets caught, gets away with it, and a few years later, gets another change to bet only on "sure things"...
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RTFM bitchez!
..ex UBS bankers all rehired by Hitlery's Private Charity.
LIBOR: The Biggest Price-Fixing Scandal Ever
since Lehman
How do we know for sure that 'The Book' was not just photoshoped by Hayes? Come on. We have the right guy.
*Yawn* Who would have thought ...
UBS is still in business?
I thought their trade licence was revoked couple of years ago when they became the first bank to pay USD 980m fine, largest at the time for breaking ALL US laws. /s
The agreement stated that if they did any further crimes in the next 5 years, they would be asked to be charged criminally. They did it again and guess what..NOTHING HAPPENNED.
I want to rig libor as well as gold (and FX while I am at it) under my licence which is to sell lollipops.
Can I do it? Where should I register the business? Appreciate any tips.
I promise I will pay 1% of all the money that I make by cheating every human who ever borrowed money or invested in any stock market product or even had a basic chequing account...anything....and I promise to keep 1% aside for all the fines.
Hell, I am willing to top UBS and pay 1% to regulators and 1% to prosecutors.
Partnership enquiries are welcome.
Oh no!
Not a manual...........................
Did they not watch the film...............The Rainmaker?
http://www.imdb.com/title/tt0119978/
The corruption, malfeasance, fraud, theft and lies come from the highest levels of our unbeloved central banking syndicate.
Prosecuting a pawn or two is supposed to make you feel better.
they put that in writing?
HOLY CRAP!
the name of the book is "Monetary Masturbation for Dummies''
Oh, I thought the name of the book is "Vault Dweller's Survival Guide" ...
http://fallout.wikia.com/wiki/Vault_Dweller%27s_Survival_Guide
When there is no recourse you can yell it from the rooftops. They train the guilt out of elite workerbees, but it is a requirement for the sheeple.
Is there an office of unserious fraud...?
It's two doors down on the left.
Don't knock.....they're really jumpy.
Across the hall from the Ministry of Silly Walks.
How could I forget! I work in the Ministry of Silly...
Yes, it's called the "Securities Exchange Commission."
Is it possible that 'The mannual' is one of many: "Guide to Publishing Treasure Rates", "Guide to Publishing Stock Prices", Guide to Publishing Swap Rates","Guide to Publishing Junk Bond Yield"............
Yes, I think you can download the entire series onto the e-reading platform of your choice. If not available on Amazon, try The Pirate Bay.
This is hard proof of what many people had only speculated--until now--lay at the root of the DOJ's official non-prosecution policy for TBTF banks: defendants will publicly reveal during their trials evidence of criminal fraud that is at least widespread and perhaps inherent in the TBTF financial institutions.
"And another conspiracy theory becomes conspiracy fact." --T. Durden
Excellent post.
The Federal Reserve is clueless or complicit. US Treasury, Congressional Banking committees are also......Either way.......? You can't vote systemic out of office.
Inadmisible...
Bailiff, whack his pee pee.
ZeroHedge is just awesome!!! Excellent piece of info
ZeroHedge is just awesome!!! Excellent piece of info
A Manual?! Wow, I'm impressed. I thought it was all done by shouting, cursing, and threatening the secretaries who did the typing. A Manual! Can these guys actually write? I suppose so. It's either write ot carry heat.
Who gave the orders? Start naming names and prosecuting these people. Incidentally - the only sure thing it seems is to create a H igh F requency T rading firm with the latest hardware/software and have 0, yep zero, chance of ever receiving a margiin call, and have every buyer in hand when selling and every seller in hand when buying - with a net risk of loss at 0, yep zero. RISK free trading is a blast if you can buy it, which was accomplished.
They're all behind bars now, right?
Sure. They are all in the same prison block as Jon Corzine.
They will rename is "Dummies Guide to...."
At least the bankster crims have implemented formal training processes and accreditation, to ensure they have a higher quality of professional thief and suit-clad parasite to ripoff the worker tax-slave fools, these days.
Civilization ... you're in good hands.
er, just as a matter of interest, how many Bank CEOs, CFOs and Executives are in prison, or on death row now, so far?
Just a rough ball-park figure will do, anyone know?
suicided in 3,2,1...
If everyone is stealing how can anyone make any money?
"it is the person who only bets on a "sure thing", gets caught, gets away with it, and a few years later, gets another change to bet only on "sure things"..."
Pretty sure Corzine is accepting money for his fund.
Instructions: 1) Fuck the muppets out of everything they have. 2) Laugh and enjoy the proceeds.
Why not publish a manual on how to screw everyone?
The wrost that can happen is the bank pays a fine.
As long as senior management doesn't go to jail, this is what powerful banks do.
And the icing on the cake is the fines can be used for political agendas!
The only way to win is not to play......
What difference does it make at this point? What are we gonna do about it? Call a cop? Take it to the supream court? Vote ? Hold a protest?