Libor arrests: U.S. and European regulators are on the verge of arresting traders believed to have manipulated Libor and other interbank lending rates, Reuters reports. The arrests, and criminal prosecutions or plea agreements to follow, are largely separate from enforcement actions regulators are pursuing against individual banks.
Soft tactics: The Federal Reserve Bank of New York and the Bank of England talked about reforming the process by which Libor and other interbank lending rates are set, but play their hands timidly in recommending action. Lawmakers on both sides of the Atlantic are asking why.
Does anyone want this job? It’s a lot easier to say who won’t replace Bob Diamond as Barclays CEO than to guess who will. Deputy chairman Michael Rake and the firm’s investment banking head Rich Ricci each ruled himself out over the weekend.
If at first you don’t succeed…apologize again: Nasdaq announced a new plan to compensate customers for losses suffered due to technical glitches during Facebook’s May initial public offering. Among the changes: Nasdaq upped the amount it would refund from $40 to $62 million, agreed to pay refunds in cash, as opposed to with credits on future trades and expanded eligibility for the funds. The expanded plan is unlikely to satisfy all investors. Knight Capital has said lost as much as $35 million on the botched IPO, while reports surfaced last month that UBS might float a much higher number.
Whither Europe: The Spanish government is paying more in borrowing costs than it has at any time since the inception of the euro, and finance minister Luis de Guindos is heading to Berlin tomorrow to talk about it.
Jumping in: Marc Lasry, Avenue Capital hedge fund manager and Democratic Party booster, has finished raising a $3 billion fund to invest in European debt. He joins alternate investment firms such as Blackstone, KKR and Apollo Global Management to seek profit in volatile European markets.
Black list: Zero Hedge reads Italian, spots this list of 10 cities that may default.
Chinese GDP…The new Libor? Investors double-check the math.
Future of futures: The National Futures Association is looking to tighten up its ship after Peregrine Financial Group founder Russell R. Wasendorf misappropriated more than $200 million on the NFA’s watch.
Smaller entities slide through loopholes: The largest U.S. lenders have created more than 10,000 subsidiaries in the last two decades in an effort to reduce tax and regulatory exposure.
Ackman acolyte out: Scott Ferguson is leaving Pershing Square to start an activist hedge fund of his own, according to letter obtained by Bloomberg. Mr. Ferguson was the first analyst Mr. Ackman hired at Pershing Square.