The British Financial Services Authority is wresting oversight of the London interbank lending rate from the British Bankers Association as part of an overhaul of the process by which Libor is set. The British government will take a more hands on role, and submissions will be delayed for three months, perhaps diminishing the temptation to rig rates for the purpose of managing perception of a bank’s health.
Right on time, The Wall Street Journal has an “analysis” that shows Libor doesn’t actually reflect banks’ borrowing costs.
Kareem Serageldin, the former head of Credit Suisse’s CDO business arrested in London on Wednesday, said he will fight extradition to the U.S. When Mr. Serageldin was charges in February for running a scheme to falsify trading positions, he expressed surprise over the indictment, noting through lawyers that he was cooperating with attorneys. When he was nabbed outside the U.S. embassy in London this week, he said through a lawyer that he was working on a plea deal, and that his capture was the result of “miscommunication.”
Morgan Stanley is going to win out over Citigroup when a mediator places a value on the Morgan Stanley Smith Barney brokerage, The New York Post reports. The two banks have disputed the value of the joint venture: Morgan Stanley, which owns 51 percent of the brokerage and plans to acquire remaining shares, said Read More
Great Moments In Ennui
Blanked: About 14 percent of investment bankers received no bonus last year, more than double the number in 2010, according to a report from the executive-search firm Options Group. Top earners saw more of their compensation deferred, with about 80 percent of total comp pushed back for bankers paid $3 million or more, compared with Read More
Like so many industries, sentiment on Wall Street can be easily gauged through the reliable and elusive measure that is the nonsense its most foxhole-entrenched lieutenants send each other during the day. If you were ever curious as to how many of them truly view Treasury Secretary Tim Geithner and the S & P ratings downgrade, well…
Treasury Secretary Tim Geithner is just bursting with pride over the government’s bailout of the nation’s large banks during (and beyond) the 2008 financial crisis. By Mr. Geithner’s estimation, the intervention will only cost around 1 percent of U.S. GDP — pretty cheap as far as systemwide emergency procedures go. The New York Times Read More
This just in from iron-stomached Associated Press reporter Martin Crutsinger:
Treasury Secretary Timothy Geithner has been admitted to a hospital where he will undergo minor surgery to deal with a kidney stone.
Treasury spokesman Steve Adamske said Geithner began experiencing severe pain from a kidney stone during the night and was admitted to Read More
Treasury Secretary Tim Geithner started a blog today, and that was inspiring enough already, but when The Observer discovered Mr. Geithner’s Treasury Department Flickr feed, we were nearly beside ourselves. For the first time, readers were invited on a virtual trip alongside Mr. Geithner through different Asian cities! Come join us in Read More
For anyone who has ever felt like the U.S. Department of the Treasury is a tad inaccessible, we’re happy to report some heartening news. Treasury Secretary Tim Geithner has started a blog, called “Treasury Notes,” on the U.S. Treasury website. There’s even a cute photo up top of Mr. Geithner writing a little Read More
There was a peculiar buzzing sound coming from somewhere inside the Credit Suisse meeting, a mildly annoying vibrating bleep. Paul Calello, the bank’s commodities and derivatives chief, checked his briefcase. The buzzes got louder.
His daughter had decided to send her Tamagotchi toy pet to work with him, and it was hungry. Mr. Calello stopped Read More