Jump to content


Sign in to follow this  
citizenB

Barclays to face first LIBOR trial in October 2013

style="text-align:center;"> Please note that this topic has not had any new posts for the last 2522 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

Barclayslink3.gif to face first LIBOR trial in October 2013

 

Edwards Wildman Palmer LLP

Alexander G. Henlin

United Kingdom

November 19 2012

Edwards Wildman Palmer LLP logo

 

Alexander G. Henlin Author page »

 

D&O carriers and brokers will want to keep October 2013 on their calendars. At a hearing three weeks ago, a UK High Court judge set that month as the date for trial in Graiseley Properties Limited v. Barclays Bank PLC. It is the first civil suit against a major UK bank concerning manipulation of the London Interbank Offered Rate to be allowed to proceed. Apart from serving as the LIBOR test case, disclosure in the matter could lead to the appearance of sensitive documents that might show what Barclays’ senior executives knew about the alleged rate-rigging effort.

 

Earlier this year, Barclays admitted to certain conduct with regard to how it set LIBOR, and paid fines to both US and UK regulators that totaled some $450 million. Some of Barclays’ traders allegedly induced the bank to underreport its rates to benefit the bank’s own financial positions. The matter is of particular interest to financial regulators because LIBOR serves as a major benchmark for a global derivatives market worth up to $350 trillion.

 

A group of nursing homes under the umbrella of Britain’s Guardian Care Group first filed the Graiseley Properties lawsuit against Barclays in April, seeking up to £38 million for being sold certain swap and collar derivative products based on the reported LIBOR rate. Those derivative products were used to refinance two other loans that Barclays had issued. Barclays has strongly contested the allegations in the suit. A copy of the amended statement of claim is available here, and a copy of Barclays’ defense is available here.

 

Based on statements published by regulators in the US and the UK, the claimants sought to add an additional allegation to the effect that Barclays falsely and fraudulently misrepresented the LIBOR rates. At the October 29 hearing setting the trial date, the High Court allowed the amendmentlink3.gif. News reports state that the judge – Justice Julian Flaux – said that it was fully arguable that Barclays’ senior management would have the same level of knowledge as the derivative traders of the impact that Barclays’ rate-fixing would have on the market. The court also said that it was arguable that the bank still authorized those products to be issued, with knowledge of the rate-fixing.

 

Justice Flaux set the matter down for further hearings this month, to determine whether Barclays would have to disclose to the Graiseley Properties claimants all of the documents that the bank previously submitted to its regulators, including details of which individuals were involved in the rate-fixing scandal. The contents of those documents will undoubtedly be of interest to insurers who wrote Barclays’ D&O insurance program, which reports suggest could total as much as £250 million.

 

http://www.edwardswildman.com/files/...t_of_Claim.pdf

 

http://www.edwardswildman.com/files/...ys_Defence.pdf


Have we helped you ...?         Please Donate button to the Consumer Action Group

 

Uploading documents to CAG ** Instructions **

 

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

 

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy -

HERE

2: Take back control of your finances -

Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors?

Read Here

4: Staying Calm About Debt

Read Here

5: Forum rules - These have been updated -

Please Read

 

 

BCOBS

 

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

 

 

 

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

Share this post


Link to post
Share on other sites
Sign in to follow this  

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...