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Found 43 results

  1. Hi - I have been checking the info that GMAC gave me for an interest only mortgage, on reading through their tariff booklet and Mortgage Guide 2000, for Interest Rates it says the following: "The interest rate charged will be based on "LIBOR" plus an additional amount (a "margin") e.g.3% over the Libor rate. This means that if LIBOR were at 7%, the interest rate would be 10%. The margin applied will depend on the type of scheme you are taking and your personal and financial circumstances and this will be set out in your Mortgage Offer." OK - I notice that little bit about your circumstances, which sounds like "we will hit you with an enhanced rate if you have any adverse credit" - lol, then says: "To help you understand how a change in the interest rate might affect your monthly payments, a typical example is given below assuming a 3 month LIBOR rate of 7.56% on a mortgage loan attracting interest of 3%, giving a total charging rate of 10.56%. EXAMPLE: Based on a residential, interest only mortgage loan of £50,295 (Initial mortgage loan of £50,000 with a £295 arrangement fee added on a property valued at £75,000 repayable at the end of a 25 year term. Included in the calculation of the total amount payable and APR are: Arrangement fee £295, T.T. fee£30, Non block Insurance fee of £40.00, Valuation fee £220, Legal fees £350, Redemption Admin fee £155 payable at the end of the 25 year mortgage loan term. 300 gross monthly payments of £442.60. Total amount payable £183,905.00. The APR is 11.3% assuming that the 3 month LIBOR remains at 7.56% throughout the 25 year term. For each 1% change in the charging rate, the gross monthly payment would change by £41.91p." Hope this is helpful.
  2. Hi folks. I was wondering, out of interest, if someone could use the LIBOR scandal as a way of getting a default removed from their credit file? I've seen some responses from banks, when asked to remove a default, that they would not because they believed it was correct to place the default on the customer's credit file because it was "a true and accurate reflection of the customer's financial situation at the time", but surely it wasn't, if the banks had been fiddling LIBOR, as this affects credit card interest rates, loan interest rates, etc? Thanks for reading, ML
  3. My mortgage is with the dreaded SPML/Capstan/Acenden and my mortgage rate is supposed to be based on the Libor rate. As we all know this was fixed and the banks were fined. My question is this; How does or can this affect me and my mortgage? Does this mean that I am owed anything back from my "lovely" mortgage lender?
  4. Hi can anyone help me find the historical 3 mnth Sterling LIBOR rates going back to 2007. I have a Kensington Morgage based on these figures. Many thanks Stuart
  5. pwg6565

    Libor Mortgages.

    I have had a Libor based tracker mortgage + 4.2% for the last 8 years. With the findings and ongoing investigation into rate fixing are we going to be able to make claims at some stage ??
  6. ICAP has been fined £55m by US and British regulators after admitting its role in the Libor-rigging scandal that has already seen three major banks pay more than £1bn in financial penalties. Staff at the London-listed broker set up by the former Conservative Party treasurer Michael Spencer were found to have provided false and misleading information as part of an attempt to manipulate borrowing rates. In internal communications, employees described Libor-submitters at some banks as “sheep” and took bribes, including champagne, dinners and even talk of Ferraris, from friendly traders to help them rig yen-denominated rates. The US Commodity Futures Trading Commission (CFTC) fined ICAP $65m (£41m), while Britain's Financial Conduct Authority imposed a £14m penalty. In the broker will pay fines totalling £55m. According to regulators, one ICAP employee was called “Lord LIBOR” and “Mr. LIBOR” due to his ability to help traders manipulate Japanese rates. The CFTC said that a senior UBS Yen trader, called on ICAP’s brokers more than 400 times for help in fixing rates. More: http://www.telegraph.co.uk/finance/libor-scandal/10333655/ICAP-fined-55m-over-Libor-rigging-scandal.html
  7. Some of the written conversations between ICAP brokers and trader regarding the manipulation of Libor, published by the . US Commodity Futures Trading Commission. List here: http://www.consumeractiongroup.co.uk/forum/newthread.php?do=newthread&f=27
  8. THE ARMED FORCES COVENANT (LIBOR) FUND A fund to support the delivery of the armed forces covenant Document Source: https://www.gov.uk/government/publications/armed-forces-covenant-libor-fund-successful-projects In December 2012, the importance of the covenant was highlighted by the decision of the Chancellor to transfer £35 million from fines levied on the banks for attempting to manipulate Libor to the MOD for use in supporting the armed forces community. Over 3 tranches, the fund has supported 96 charities and good causes supporting the Armed Forces Community in a variety of ways. Whilst the £35 million fund has closed please keep checking our website for new opportunities for funding including a £10 million per year fund which will open in 2015 or subscribe to our email alerts to find out the latest updates for the armed forces covenant.
  9. The FSA has finalised new rules to regulate Libor and other financial benchmarks in the wake of last year’s rate rigging scandal. Libor will be regulated from 1 April when the Financial Conduct Authority comes into force. Under the final rules, published today, the Libor administrator will need to corroborate submissions and monitor suspicious activity. Firms submitting Libor data must outline a clear conflict of interest policy with appropriate systems and controls.The FSA believes this will result in clear, robust rules which will give firms and their employees comfort that the regulatory regime clarifies what is expected of them. The FCA will also introduce two new significant influence controlled functions under the approved persons regime for the administrator and submitting firms. FCA chief executive designate Martin Wheatley says: “Confidence and trust are critical to financial markets. That trust has been eroded by the Libor scandal and the recent enforcement action against several banks. These new rules today should help restore that faith and bring integrity back to Libor.” In the last year, the Royal Bank of Scotland, UBS and Barclays have faced billions of pounds worth of global fines after their traders were found to have fixed rates. Last month, an internal review into the FSA’s handling of Libor rigging found failings in its approach. The Wheatley review, published in September 2012, outlined 10 recommendations to improve the Libor system. The new rules were passed into law under the Financial Services Act 2012. They include the appointment of a new Libor administrator to replace the British Bankers’ Association. Last month, the Government appointed the Hogg Tendering Advisory committee for Libor to choose a new administrator that will report back later this year. Link: http://www.mortgagestrategy.co.uk/latest-news/fsa-finalises-new-libor-rules/1068422.article
  10. Hi, I'm new and maybe in the wrong place but I'm sure someone will help me there. We started a business with a loan from Barclays. The business plan showed a period of 3-4 years to go into profit. It involved converting a country house into self catering holiday accomodation. During the six months it took to sell and purchase properties the interest rate doubled. We were on target time wise and were due to open in the summer, as in the plan. Obviously we were struggling with repayments and had extended the overdraft. On the Friday of a bank holiday weekend we received a letter out of the blue informing us that,words to the effect, 'in our best interests', they had frozen our account. We were still building, so couldn't open and if we sold, we would have lost thousands - and we had four children and nowhere to go. The interest rate being charged was around 20%. The year was 1987. Now I know this is probably too long ago (not long enough as I am sweating thinking about it again) - but Appropos LIBOR fixing I am sure I heard that it has been going on for ages and had influenced those excessive interest rates in the 80's. My question is, if it did and if B did, would the likes of me be entitled to a piece of compensation that sufferers from the last decade will no doubt be getting? Our business never recovered and although we ran it for fourteen years it was always at a loss and had to be subsidised by salaried employment.
  11. oakwoodbank

    LIBOR Fines

    Several banks have been fined in this LIBOR situation and the RBS has been involved today according to the news. Can someone please tell me where all of this large amount of money that is exacted in fines goes?
  12. Hong Kong is to investigate possible Libor rigging by UBS, a day after the Swiss bank agreed to pay £940m to regulators for trying to manipulate the key rate on an "epic scale" and two former traders at the bank were charged with conspiracy. The Hong Kong Monetary Authority, the city's de facto central bank, said it has received information from overseas regulators about "possible misconduct" by UBS involving submissions for the city's interbank rate, known as Hibor, and other reference rates in Asia. UBS was fined by Swiss, British and US regulators on Wednesday after an investigation revealed evidence of massive misconduct in the setting of the London interbank offered rate (Libor), a global reference that affects trillions of dollars of loans and mortgages. The penalty is the second-largest banking fine ever. The Hong Kong Monetary Authority said it had "commenced an investigation to assess whether the potential misconduct had any material impact on Hibor, which is considered a key benchmark interest rate for economies in the region. It will work with overseas regulators to gather information and "consider further actions that need to be taken" pending the findings of the investigation. More: http://www.telegraph.co.uk/finance/libor-scandal/9757354/Hong-Kong-joins-UBS-Libor-rigging-probe-as-US-charges-two-ex-traders-at-bank-with-conspiracy-to-manipulate-rate.html
  13. After Swiss bank UBS agree to pay £940m in fines to settle charges of manipulating Libor, Damian Reece, The Telegraph's Head of Business, says the scale of undetected wrongdoing is "shocking". Swiss banking giant UBS has agreed to pay £940m to regulators in order to settle charges of manipulating Libor interest rates, fraud and paying bribes to brokers. UBS' 1.4bn Swiss franc (£940m) fine includes a £160m payment to the Financial Services Authority, the largest penalty ever levied by the British watchdog, and $1.2bn paid to US authorities. The penalty is the second-largest fine paid by a bank and is more than three times the £290m fine levied on Barclays in June for attempting to rig the Libor benchmark rate used to price financial contracts around the world. The FSA said at least 45 people were involved in or were aware of the rigging and that the breaches occurred over a five-year period between January 2005 and December 2010. The watchdog described the misconduct as "extensive and widespread", with at least 2,000 requests for inappropriate submissions documented and "unquantifiable" number of oral requests. Link: http://www.telegraph.co.uk/finance/libor-scandal/9755469/Scale-of-UBS-Libor-abuse-shows-why-FSA-is-being-dismantled.html
  14. Damian Reece, The Telegraph's Head of Business, says the scale of fines awarded to banks will have an impact on their ability to lend money to consumers. UBS has swallowed a £940m fine after a global probe revealed its staff orchestrated the manipulation of benchmark interest rates. The extent of the wrongdoing was highlighted in a series of emails released by the Financial Services Authority (FSA), which showed how traders and brokers conspired to rig the rate and referred to each other in congratulatory terms. In this video, Telegraph Head of Business Damian Reece explains the impact that FSA fines will have on consumers. Link: http://www.telegraph.co.uk/finance/personalfinance/borrowing/9755502/Libor-scandal-FSA-fines-will-make-it-harder-for-banks-to-lend-to-consumers.html
  15. Swiss banking giant UBS has agreed to pay £940m to regulators in order to settle charges of manipulating Libor interest rates, fraud and paying bribes to brokers. The penalty is the second-largest fine paid by a bank and is more than three times the £290m fine levied on Barclays in June for attempting to rig the Libor benchmark rate used to price financial contracts around the world. UBS' 1.4bn Swiss franc (£940m) fine includes a £160m payment to the Financial Services Authority, the largest penalty ever levied by the British watchdog, and $1.2bn paid to US authorities. As part of the settlement, UBS' Japanese arm has agreed to enter a plea to one count of wire fraud relating to the manipulation of certain benchmark interest rates, including Yen Libor. The steep fine for UBS is despite the bank, since 2011, cooperating with law-enforcement agencies in their probes. The bank said it received conditional immunity from some regulators. In a statement on Wednesday, UBS said that certain personnel had "engaged in efforts to manipulate submissions for certain benchmark rates to benefit trading positions". Link: http://www.telegraph.co.uk/finance/libor-scandal/9754614/UBS-fined-940m-over-Libor-rigging.html
  16. Swiss bank prepares to pay a fine of around £630m for rigging Libor, a fresh embarrassment after the Kweku Adoboli trading scandal. Banks face another big hit to their reputation as UBS of Switzerland prepares to pay a fine of around £630m for rigging Libor – more than twice the amount Barclays paid for attempting to manipulate the key interest rate. Details of the settlement with the Financial Services Authority and a number of US and Swiss regulators are expected to be released next week. The news will be a fresh embarrassment for the Swiss bank after Kweku Adoboli, a former employee, was jailed for fraudulent trading last month. The potential scale of the fine emerged during a week in which the Serious Fraud Office made its first arrests in the Libor scandal and two British banks – Standard Chartered and HSBC – paid out a total of more than £1.6bn to settle damaging allegations of money laundering and sanctions busting from the US authorities. A former trader from UBS was among three men arrested on Tuesday by City of London police and the SFO in the Libor investigation, which was sparked by Barclays' £290m fine in June. Tom Hayes, who has worked for Citigroup as well as UBS, and two men who worked for City-based inter-dealer broker RP Martin – Terry Farr and Jim Gilmour – were named as those arrested. UBS is not the only bank braced for the fallout from the Libor scandal; bailed-out Royal Bank of Scotland has prepared the ground for a huge fine – also possibly bigger than Barclays' – in the coming weeks. Allegations about RBS's role in the scandal have emerged from Singapore where court filings alleged its traders described the benchmark rate as a "cartel". More: http://www.guardian.co.uk/business/2012/dec/13/ubs-bank-libor-fine
  17. The Serious Fraud Office has confirmed three arrests over the fixing of the London InterBank Offered Rate (LIBOR). Three men, aged 33, 41 and 47 have been arrested and taken to a police station in London for interview in connection with the investigation into how LIBOR rates were manipulated. All three arrested are British nationals and were arrested at one residential premises in Surrey and two homes in Essex. The news comes just days after the Financial Services Authority (FSA) opened its consultation on how best to set LIBOR in future. It is also considering which organisations should be involved in the process. Bosses at the City watchdog are considering increasing the number of organisations that make submissions for LIBOR from the current 18 to 20 – not all of which will necessarily be banks in the future. In June, Barclays was slapped with a £290 million fine after it admitted it had a role in the fixing of rates at artificial levels. The acknowledgement later led to the resignation of Bob Diamond as chief executive and several other Barclays executives. LIBOR is a base rate for other financial organisations to set interest rates around the world. It is created by measuring from what banks expect to pay to borrow from each other of different time periods. These responses are averaged to create the figure. Link: http://www.credittoday.co.uk/article/14662/online-news/three-arrested-in-libor-scandal
  18. Rich Ricci, one of Barclays' top bankers, told MPs that the bank has fired five out of 13 people "disciplined" over the Libor scandal - but that many had already moved on. The bank is attempting to rebuild its reputation after being fined a record £290m in June for manipulating the London interbank offered rate (Libor), used used to fix the cost of borrowing on mortgages, loans and derivatives worth more than $450 trillion (£281 trillion) globally. After launching its own investigation, Barclays “terminated” five of 13 people disciplined, Rich Ricci, head of Barclays’ investment banking arm, told a parliamentary committee hearing. However, he said that many others who would have been involved had already moved on to “other institutions”. “A lot of the individuals that would have been in that disciplinary process had left,” he said, adding that Barclays had informed these people’s new firms of its findings via the authorities. Pressed by MPs over the bank’s failings, Mr Ricci admitted that in the past it and the wider City had given too much emphasis to employees’ financial performance over other factors. More: http://www.telegraph.co.uk/finance/libor-scandal/9709314/Barclays-has-disciplined-13-fired-five-over-Libor-scandal.html
  19. A class action complaint filed earlier this month in New York federal court claims borrowers with adjustable-rate mortgages based on the London Interbank Offered Rate, or Libor, paid more than they rightfully should have due to the rate's manipulation by the global banks involved in setting it. More: http://money.cnn.com/2012/10/16/news/companies/libor-homeowners-mortgages/index.html
  20. The Royal Bank of Scotland (RBS) has announced a pre-tax loss of £1.26 billion for the three months to the end of September. It takes the total loss for the year to £3.4 billion and compares to a £2 billion operating profit for the same period in 2011. A further £400 million provision for payment protection insurance (PPI) compensation increased the loss. The bank also made a £1.5 billion charge against the value of its own bonds. The taxpayer-owned bank is also preparing for talks with regulators to settle its role in the manipulation of the Libor interbank lending rate. The bank said it expects to have talks soon that are likely to result in fines of a "material" amount. It hopes that details will be finalised before it announces its next set of results at the end of February 2013. Last week, the Federal Energy Regulatory Commission recommended that Barclays be given a $470 million fine relating to energy trading in North America. RBS Chief Executive Stephen Hester said: “We are in the FSA’s hands, and the hands of the other regulators. Personally, I’ll be disappointed if, by the time of our year-end results, we haven’t had news on this.” The extra money set aside for PPI compensation takes the total charge for mis-selling of PPI by RBS to £1.7 billion. After Lloyds and Barclays added a further £1.7 billion to their PPI provision, this means the total set aside by UK banks is now more than £11 billion. RBS said that it may need to make further provision for PPI compensation in the future but the latest provision was an attempt to “get ahead” of the problem. Despite the big loss, Mr Hester said that “the RBS restructuring programme continues to make excellent progress.” RBS is 81 per cent owned by the UK taxpayer after having to accept a £45 billion bailout at the height of the financial crisis. More: http://www.myfinances.co.uk/investments/2012/11/04/rbs-announces-1-3b-loss-as-it-raises-ppi-provision-by-400m
  21. The Financial Services Authority, is investigating claims by a whistleblower that Britain's £300bn wholesale gas market has been "regularly" manipulated by some of the big power companies, exploiting weaknesses that echo the recent Libor scandal. Separately, the energy regulator Ofgem has been warned by a company responsible for setting so-called benchmark prices, ICIS Heren, that it had seen evidence of suspect trading on 28 September, a key date as it marks the end of the gas financial year and can have an important influence on future prices. http://www.guardian.co.uk/business/2012/nov/12/libor-like-manipulation-gas-markets
  22. Lloyds Banking Group has become the latest British lender to be drawn into the Libor-rigging investigations by state prosecutors in the US. The bailed-out lender is one of nine banks to receive subpoenas from New York attorney-general Eric Schneiderman and his Connecticut counterpart George Jepsen. Several other European banks have also received the requests for information, including Credit Suisse and Societe Generale, as well Bank of America and Japanese lenders Bank of Tokyo-Mitsubishi UFJ and The Norinchukin Bank. The subpoenas were originally issued in August, according to The Wall Street Journal, and are part of the same investigation that saw Barclays, HSBC and Royal Bank of Scotland, as well as Citigroup, Deutsche Bank and JP Morgan being served with requests for information. Barclays is the only bank to have admitted attempting to rig the key inter-bank lending rate which influences the price of trillions of pounds of assets. In June it paid £290m to the US and British authorities to close their investigations into its role in the scandal. Investigators across the world are continuing to examine the extent of Libor manipulation and further settlements are expected. Criminal charges could be brought against any bank staff found to be involved. More: http://www.telegraph.co.uk/finance/libor-scandal/9637309/Lloyds-latest-UK-bank-to-face-Libor-rigging-inquiry.html
  23. Martin Wheatley announces proposals to beef up 'broken' interest rate setting system. City dealers who rig Libor should face criminal charges, the head of the review into reforming the benchmark interest rate will say on Friday as he announces proposals to beef up regulation of the "broken" rate-setting system. Martin Wheatley, a senior regulator at the Financial Services Authority, will also stress that other institutions face similar punishments to those handed out to Barclays, which was fined £290m for its attempts to manipulate the rate used to set borrowing costs for companies and households around the world. He will recommend that the FSA should regulate the Libor system. But while he will say that Libor can be preserved, he will also call for an international discussion about alternative benchmarks. Libor – the London interbank offered rate – represents the prices banks pay to borrow from each other. It is set by a panel of banks asked the prices at which they expect to borrow over 15 periods, from overnight to 12 months, in 10 currencies. The rates the banks submit are published on the same day Wheatley is proposing that those 150 benchmark rates be reduced to just 20 – in five currencies and four maturities. He says more banks should participate in making submissions – but he is proposing that the individual rates submitted should not be published for three months, to avoid a rerun of 2008 when, at the height of the banking crisis, rates were artificially reduced to avoid any stigma of appearing to be in trouble. The managers of the so-called submitters should be subjected to direct authorisation by the FSA, he will say, and a code of conduct drawn up for the operation of the rates. His hasty six-week review was sparked by the Barclays scandal which eventually led to the departure of chief executive Bob Diamond. The firms involved in Libor were regulated but not the market itself, so he will call for the law to be changed to make it offence to "make a false or misleading statement" to manipulate Libor. "This would enable the FSA to use criminal powers for the worst cases of attempted manipulation," Wheatley will tell a City audience as he publishes his review. Wheatley, who is to head the Financial Conduct Authority when it is spun out of the FSA next year, will also attack the previous "careless" way in which the rate-setting process was overseen by the British Bankers' Association, which will be stripped of any further involvement. A tender process will be started on Friday for a new body to oversee Libor in a process that will be supervised by Baroness Hogg . He will call on the banks involved to "stand up and take responsibility" too. "The reason we are here … is that we have been misled. The system is broken and needs a complete overhaul. The disturbing events we have uncovered in the manipulation of Libor have severely damaged our confidence and our trust – it has torn the very fabric that our financial system is built on," Wheatley will say. "Governance of Libor has completely failed, resulting in the sort of shameful behaviour that we have seen. This problem has been exacerbated by a lack of regulation and a comprehensive mechanism to punish those who manipulate the system." Link: http://www.guardian.co.uk/business/2012/sep/28/rigging-libor-banks-criminal-offence
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