Shocking Details Of Barclays Epic Lie-bor Fraud: "Duuuude…Whats Up With Ur Guys 34.5 3m Fix…Tell Him To Get It Up!"

Tyler Durden's picture

We knew something was very wrong back in January 2009. We knew the rabbit hole went deep. We had no idea just how deep.... It goes very, very, very deep.

From the FSA' breakdown of Barclays traders caught in the act of manipulation:

On Friday, 10 March 2006, two US dollar Derivatives Traders made email requests for a low three month US dollar LIBOR submission for the coming Monday:


i. Trader C stated “We have an unbelievably large set on Monday (the IMM). We need a really low 3m fix, it could potentially cost a fortune. Would really appreciate any help”;


ii. Trader B explained “I really need a very very low 3m fixing on Monday – preferably we get kicked out. We have about 80 yards [billion] fixing for the desk and each 0.1 [one basis point] lower in the fix is a huge help for us. So 4.90 or lower would be fantastic”. Trader B also indicated his preference that Barclays would be kicked out of the average calculation; and


iii. On Monday, 13 March 2006, the following email exchange took place:


Trader C: “The big day [has] arrived… My NYK are screaming at me about an unchanged 3m libor. As always, any help wd be greatly appreciated. What do you think you’ll go for 3m?”


Submitter: “I am going 90 altho 91 is what I should be posting”.


Trader C: “[…] when I retire and write a book about this business your name will be written in golden letters […]”.


Submitter: “I would prefer this [to] not be in any book!”


The number of requests and the period of time over which they were made indicate that the Derivatives Traders made requests on a routine basis. Specific emails also indicate the requests were made regularly. For example, the following email exchange took place on 27 May 2005:
Submitter:“Hi All, Just as an FYI, I will be in noon’ish on Monday […]”.
Trader B: “Noonish? Whos going to put my low fixings in? hehehe
Submitter: “[…] [X or Y] will be here if you have any requests for the fixings”.


In response to a request from Trader C for a high one month and low three month US dollar LIBOR submission on 16 March 2006, a Submitter responded: “For you…anything. I am going to go 78 and 92.5. It is difficult to go lower than that in threes, looking at where cash is trading. In fact, if you did not want a low one I would have gone 93 at least”.


Trader C requested low one month and three month US dollar LIBOR submissions at 10:52 am on 7 April 2006 (shortly before the submissions were due to be made); “If it’s not too late low 1m and 3m would be nice, but please feel free to say “no”... Coffees will be coming your way either way, just to say thank you for your help in the past few weeks”. A Submitter responded “Done…for you big boy”.


On 6 August 2007, a Submitter even offered to submit a US dollar rate higher than that requested:
Trader F: “Pls set 3m libor as high as possible today
Submitter: “Sure 5.37 okay?”
Trader F: “5.36 is fine”


On Thursday 14 December 2006, Trader F emailed a Submitter, requesting a low three month US dollar LIBOR submission for the following Monday, 18 December 2006; “For Monday we are very long 3m cash here in NY and would like the setting to be set as low as possible…thanks”. The Submitter instructed another Submitter to accommodate the request; “You heard the man” and confirmed to Trader F “[X] will take notice of what you say about a low 3 month”.


Two seconds later, that Submitter sent himself an electronic calendar reminder to make a low three month submission at 11 am on Monday 18 December 2006: “USD 3mth LIBOR DOWN”.

It just gets better:

For example, on 26 October 2006, an external trader made a request for a lower three month US dollar LIBOR submission. The external trader stated in an email to Trader G at Barclays “If it comes in unchanged I’m a dead man”. Trader G responded that he would “have a chat”. Barclays’ submission on that day for three month US dollar LIBOR was half a basis point lower than the day before, rather than being unchanged. The external trader thanked Trader G for Barclays’ LIBOR submission later that day: “Dude. I owe you big time! Come over one day after work and I’m opening a bottle of Bollinger"

And better:

For example, on 6 September 2006, an external trader at another bank (Panel Bank 1) contributing EURIBOR submissions sent an instant message to Trader E at Barclays requesting a low one month submission: “I seriously need your help tomorrow on the 1mth fix”. The next day, Trader E passed on the request to Barclays’ Submitters, blind copying in the external trader.

And better:

On 28 February 2007, Trader B made a request to an external trader in relation to three month US dollar LIBOR “duuuude… whats up with ur guys 34.5 3m fix…tell him to get it up!!” The external trader responded “ill talk to him right away”.

And other banks:

Barclays’ Submitters also received 11 requests for sterling LIBOR submissions from an external trader at another bank (who had previously worked at Barclays). These requests were not taken into account.

And truly stunning:

Trader E communicated with traders at Panel Banks 1, 2 and 6 in advance of the IMM date. For example on 12 February 2007, Trader E stated in an instant message with a trader at Panel Bank 6:
“if you know how to keep a secret I’ll bring you in on it […]
we’re going to push the cash downwards on the imm day […]
if you breathe a word of this I’m not telling you anything else […]
I know my treasury’s firepower…which will push the cash downwards […]
please keep it to yourself otherwise it won’t work”.

And, in the end, the punchline:

Various instant messages exchanged after the final benchmark rates were published on 19 March 2007 indicated that the traders involved considered that their strategy had been successful. Trader E commented to the external trader at Panel Bank 6 “this is the way you pull off deals like this chicken, don’t talk about it too much, 2 months of preparation […] the trick is you must not do this alone […] this is between you and me but really don’t tell ANYBODY”.

Absolutely sickening. Read the full thing here.

Our advice to anyone who had an adjustable rate mortgage in the period between 2005 and today: speak to a lawyer immediately about suing the living feces out of Barclays, and all other banks who crawl out of the woodwork with purported settlements. Because due to their undisputed mark manipulation, it is absolutely safe to say that ARMs, which rely on Libor for interest rate formation, were grossly manipulated by the same idiot traders who left written evidence of their manipulation year after year. Now it is their turn to pay.

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GeneMarchbanks's picture


Why should anyone act surprised at this? The FSA makes the SEC look like the TSA.

BKbroiler's picture

duuuuude, where's my morals?

Manthong's picture

It's just a good thing they could not possibly jerk with the valuations of any of their ETFs or options.

Popo's picture

Holy shit!

I knew this racket was corrupt,  but the *casualness* of the corruption is fucking jaw dropping.    "Please set LIBOR as high as possible today".   Sure buddy, no problemo?    FUCK ME that's off the charts.   I figured it was more of a nudge nudge,  wink wink situation.   

These guys are TOAST.

Dear lawyers of the world.  Yes, I still hate you and think you're low-life vampires,  but please awake every blood-sucker in your respective lairs and sue the bujeezus out of every motherfucking pillar of London finance until they are pale, white and trembling.

This is going to be the easiest and highest-paying lawsuit in the history of lawsuits.


redpill's picture

FINES?  Fuck fines, where's the jail time for these criminals?

MillionDollarBonus_'s picture

This is not manipulation. LIBOR has ALWAYS been set by a few selected, elite investment banks, and that's exactly how it should be. Jealous doomer day traders need to admit that they are simply not as smart, or successful as traders at top tier investment banks. I know it hurts, but you have to admit it, or you just look foolish and pathetic (in my opinion).

GeneMarchbanks's picture


That is actually close to the truth.

notbot's picture

yes Libor is set by a few banks, but it *should* be honest, not manipulated in cahoots with your prop desk.  

hedgeless_horseman's picture



Trader C: “The big day [has] arrived… My NYK are screaming at me about an unchanged 3m libor. As always, any help wd be greatly appreciated. What do you think you’ll go for 3m?”


Submitter: “I am going 90 altho 91 is what I should be posting”.


We would be foolish to believe that gold and silver quotes are not manipulated in the exact same way.


"I checked what gold is worth on Kitco..."



Xibalba's picture

Hey Chilton, hows that 'investigation' into the silver markets going?  

Bringin It's picture

Sorry, Bart's a croney.  He's doing what he's supposed to be doing.

AldousHuxley's picture secret, easy, and not much punishment.


Why did Pandit's money losing hedge fund get bought out by Citibank for $300M and put him as CEO?

Why did AIG bonuses get paid?

Why did Eliot Spitzer get booted out on call girl scandal right when he was positions to go after banksters?

NY Fed Chairman & board of Goldman Sachs  Stephen Friedman profit millions off of insider trading ahead of the news that Goldman was bailedout via counterparty payoff from AIG rescue.


Tim Geithner, President & CEO of NY Fed now your US Treasurer

picked in 2003 by committee of bank CEOS:

  • Hank Greenberg, then the chairman of AIG
  • John Whitehead, a former chairman of Goldman Sachs
  • Walter Shipley, a former chairman of Chase Manhattan Bank, now JPMorgan Chase
  • Pete Peterson, a former chairman of Lehman Bros



theprofromdover's picture

Is the Kitco logo a one-legged pair of Y-fronts?

MsCreant's picture

MBD, you need to retire this account, you just jumped the shark. No one will take this one seriously. You will get marked down for doing this badly.

Paper CRUSHer's picture

One thing for certain ol' MDB ain't no Johnny Bravo aka.Master bater.He lacks character and class.....he's jus' a dull fake,a phoney and the only reason he comes to zerohedge is that his wife dont luv 'im n'more.

BTW, i didn't slap a junk on ya.

Andy Lewis's picture

Could it be sarcasm on his part?  It reads like it to  me.

Whalley World's picture

Naturally it's sarcasm, and i have begun to appreciate his posts.

Everybodys All American's picture

I hate to attack you but you are a pathetic excuse to begin with so I don't feel all that bad having read your nonsense for years on this board. If you just pass this off as normal business what do you call criminal? How do you ever expect to clean up the financial system? This is partly how and why we had the sub prime mess. This is how we end up with robo signings on foreclosures. I could go on but your simply a waste of time and when the financial system falls completely apart  no one will be asking for your opinion I can assure you.

NotApplicable's picture

OMG, this is hilarious!

You not only made his day, but week, month, and maybe even year as well.

Some trolls can only dream of such responses, but not MDB. Nope, thanks to you, he has fulfilled his destiny.

Everybodys All American's picture

and you know this because? Pardon me if I have not caught on to his stupid form of satire.

Short Memories's picture

Because you took the bait (hook line and sinker) :D

I guess most people do the first few MDB posts you read till you 'get it'. His posts are actually very cleverly worded

I love reading his posts when he's on a role! only give him a -1 when he's having a bad day!

jimmytorpedo's picture

Nobody understands MDB. He's the straight man.

I haven't seen hilarity like that since "Who's on first?"

Keep it up MDB! 

CrawdadMan's picture

Someone gets it. I too got it 6 years ago.

Whinning is not gonna stop the manipulations. Keep thinking one day this thing would explode and you'll carry that thnking to your grave.

Even if that day did come, there would be some other kind of exploit that would be used. 

Remeber, humans are inherently greedy.

Peter Pan's picture

Not as smart or successful as traders at top tier investment banks? You mean "perhaps not as dumb and stupid" given that they have been caught.

Kayman's picture


Just to clear the record.  Libor is the London Interbank Offered Rate- the rate at which lending is supposed to be transacted.

Naturally for you, having a manicured "elite" investment criminal setting Libor at whim or bribe, is what constitutes "top tier".

Great sarcasm, nevertheless.

Joe Davola's picture

If I had a dollar for every class action lawsuit mail I've received in the past few years, it would be a hell of a lot more than the lawsuit settlements.


Class action lawsuits are bigger scams than the original injustice they purport to redress.  Worst is the lawsuit against MFS that once was our only choice for 401k at my company.  Not only did we get stuck having to invest in their shitty money losing funds, then they sent us this paperwork to fill out to recover a bit of their skim.  Nearly two years later, still nothing.  Knowing those bastards, they probably sold my identity after sucking me in to filling out that damn class action form.

Rainman's picture only check on a Merrill class action was $ 36.18 on a loss of over 10k. Lawyers got the lion's share and I got a bad attitude.

Joe Davola's picture

36 bucks - probably cost more to cut the check.  You've shattered my dreams of receiving enough for a downpayment on a new Yugo!

hbjork1's picture

You've got the picture, Joe.  Unless you are a larger holder, not worth the time to fill out the paperwork.

Jena's picture

I stick the paperwork in a file and watch it get bigger.  Whether it's a class action suit or a BK, I know it's a waste of time.  I figure if I play their game the only ones who come out ahead are the lawyers and all I get is dizzy from the hopium when I get another notice.  

Fuck them.

atomicwasted's picture

So you want people to obey the law, and you admit that you need lawyers to do that, but you hate lawyers.  Please check your premises.  Thank you.

anonnn's picture

FSA also covers their asses. Part of their origin, don't you know.

From Financial Services website:

"The Financial Services Authority (FSA) is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000. We are a company limited by guarantee and financed by the financial services industry. The Board sets our overall policy, but day-to-day decisions and management of the staff are the responsibility of the Executive Committee.

We are accountable to Treasury Ministers and, through them, Parliament. We are operationally independent of government and are funded entirely by the firms we regulate. We are an open and transparent organisation and provide full information for firms, consumers and others about our objectives, plans, policies and rules, including through this website."

Budd aka Sidewinder's picture

Don't you mean MORE pale white and trembling?

Raymond Reason's picture

Punishment by rule of law doesn't work anymore.  Punish them by not participating in their game. 

More_sellers_than_buyers's picture

I know this looks bad...and it may be... But these idiots know that everything they type is recorded, it is trader talk.. They are thanking guys who happen to be in a position to set price. It happened to go their way.. I'm betting if you look through a month long thread of back and forth you would see them calling the same people assholes for setting the price against them...let's get real here.... Let's find the assholes and hang them up , not just anyone in the biz

Buckaroo Banzai's picture

The real news isn't that something like this happened-- OF COURSE it does every single day. I'm MUCH more interested in who blew the whistle, and why. Because the Post Turtles (aka "regulators") didn't uncover this by themselves.

Biosci's picture

Wow, so much anger, up and down the thread.  I guess that's a reasonable response, but strong primary emotions like these are the result of reality not matching up to your expectations...and my expectations for this crew are so low that this barely fazes me.  So Buckaroo, I too am more interested in how the story got loose.

No matter where you go...there you are.

hedgeless_horseman's picture



Our advice to anyone who had an adjustable rate mortgage in the period between 2005 and today: sue the living feces out of Barclays, and all other banks who crawl out of the woodwork with purported settlements. Because due to their undisputed mark manipulation, it is absolutely safe to say that ARMs, which rely on Libor for interest rate formation, were grossly manipulated by the same idiot traders who left written evidence of their manipulation year after year.


I love these types of action items. If I only had an ARM.

Not to worry, I am certain that defenders of law and justice, like Attorney General Eric Holder, will be on this in a heartbeat. //sarc/

Byte Me's picture

I love these types of action items. If I only had an ARM.

Aren't there any delinquent ARMs for repurchase? THEN (after buying such) litigate for it being originally faulty.

It's not as naïve as it sounds - these are crazy times...

resurger's picture

Crazy times indeed...

fine of £59.5mio , so what! they probably made shit loads of money on the less than 1 year MM operations

That's not to mention if they already knew about ZIRP back in 2008 and shorted the Yield Curve

vast-dom's picture

"Our advice to anyone who had an adjustable rate mortgage in the period between 2005 and today: sue the living feces out of:".......THE FED!


And as a thank you Barclays will now offer NIRP for all it's sheeple "customers"...

emersonreturn's picture

i agree, vast-dom, sue the 'living feces' out of the FED!

fnordfnordfnord's picture

If you'd had an ARM then; would you have enough money now to sue anyone?

Stock Tips Investment's picture

These issues will do much damage to Wall Street. There are thousands of working people and very hard to make money in this market. Unfortunately, unscrupulous people not only want to profit illegally. We will also generate immense damage to this industry.

battle axe's picture

Really, you mean there was a fix on, this had been going on for years....Also it is bad to hit yourself in the head with a hammer.....

fuu's picture

Firing squads.

"Barclays has been fined more than $450m by US and UK authorities for misconduct and attempted manipulation of the London interbank offered rate, which serves as a benchmark for $360tn in contracts worldwide."


post turtle saver's picture

You say "firing squads", they say "reasonable risk". Somewhere as we speak a Barclays trader is pissing $450m like it ain't no thing.