The Libor scandal has reportedly involved 16 banks, three of which have already made settlements involving fines of over $2.5 billion collectively.
The Financial Services Authority (FSA) has released emails and other communications exchanged between traders and employees and, in some cases, employees external to the banks.
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Investment News’ reporter Andrew Osterland notes the nature of the writing in these emails as that of sniggering grammar school-age kids let loose with an unlimited iPhone account.
They are quite revealing of the banter exchanged between traders and rate submitters about adjusting the rates. They speak of small rewards promised in exchange for more favorable rates.
One even promises a mention in a memoir after the submitter exits the business. The trader basically says no thanks and that he doesn’t want his name mentioned in any book.
They talk of favors exchanged and offers for accommodation in rates, even specifying the length of time accommodation is requested.
One even offers a monetary reward in exchange for help with the rates. The overall tone is for milking the favors
for all they can get, even for merely a great steak dinner.