Libor rigging - 14 years

[dejongj]

So a trader received a 14 year sentence for Libor rigging. Ouch that is one seriously heavy sentence. And there are suggestions that after he is a free man, the U.S. will commence extradition proceedings and put him on trial there as well.

Whilst justice should be served it does seem a very tough sentence. I also can't help but feel that he's been hung out to dry by management and directors. Or did a single trader do this all by himself without any knowledge or control?

And has anyone else been brought to book for the financial crisis yet? Anyone?

 

[jakeblu]

You think there was a financial crisis then and it wasn't all Labours fault

 

[viv1969]

I don't think the sentence is overly harsh.
I think it appears that way because in general, sentencing here is pathetically lenient.

 

[jonbeeza]

I don't think the sentence is overly harsh.
I think it appears that way because in general, sentencing here is pathetically lenient.

If we were being sentenced, I am sure we would all opt to get a sentenced dished out in the UK. I know I would, I bet you would too

 

[viv1969]

If we were being sentenced, I am sure we would all opt to get a sentenced dished out in the UK. I know I would, I bet you would too

Which kind of backs up my point.

 

[jonbeeza]

Which kind of backs up my point.

Oh good, I do like to stay on the good side of you

 

[Llamaman]

The first major conviction was always going to be a big one. Who says judges don't bow to political pressure?

 

[dejongj]

You think there was a financial crisis then and it wasn't all Labours fault

You better read it again, where did I limit this to bankers? Why not include politicians for mismanagement

I don't think the sentence is overly harsh.
I think it appears that way because in general, sentencing here is pathetically lenient.

When you put it like that I agree. Although I do not believe that 14 years rehabilitation is necessary, nor fitting to the crime.

 

[SFTPhotography]

I don't think the sentence is overly harsh.
I think it appears that way because in general, sentencing here is pathetically lenient.

Possibly this. In the context of uk sentencing it's very harsh, but it'll be in reality out in 7 and served in a low security joint. It won't be that bad.

Although rapists get less time it's in the nasty jail. I'd sooner do longer time in the nicer jail with less knifey inmates myself.

 

[viv1969]

You better read it again, where did I limit this to bankers? Why not include politicians for mismanagement



When you put it like that I agree. Although I do not believe that 14 years rehabilitation is necessary, nor fitting to the crime.

And again I fear that's where we fail.
It shouldn't all be seen as rehabilitation.
The criminal justice system was bought about to punish those who commit the crimes.
Rehabilitation shouldn't be seen (imo) as the primary aim.

 

[arclight]

14 years - 7 maximum in confinement. Probably a substantial part of that will be served in the community.
The banking shenanigans have been ongoing for a long time and all there is to show for the alleged crackdown is one person in prison. That leaves an awful lot of crooks at large.

 

[Garry Edwards]

Yes, partly the reason for a prison sentence is rehabilitation, it's partly punishment and it's partly to protect the public by separating the criminals from them.

Problem is, the people who really can benefit from the rehabilitation part of it - the young offenders - just don't get it, due to acute staff shortages and lack of facilities, so it doesn't work in practice.

 

[PaulF]

And has anyone else been brought to book for the financial crisis yet? Anyone?

The banking shenanigans have been ongoing for a long time and all there is to show for the alleged crackdown is one person in prison. That leaves an awful lot of crooks at large.

According to Sky News this morning he is the first to be brought to trial but there are others that have been charged and are awaiting trial/sentencing, they didn't mention numbers.

Considering the impact these traders/companies illegal actions had on most peoples lives (mortgage/loan rates etc) what's the chance of a PPI style payback?

 

[Llamaman]

Civil suits related to LIBOR and FX rigging are already making their ways through the courts. It'll be slow progress.

 

[MK1 Photography]

According to Sky News this morning he is the first to be brought to trial but there are others that have been charged and are awaiting trial/sentencing, they didn't mention numbers.

Considering the impact these traders/companies illegal actions had on most peoples lives (mortgage/loan rates etc) what's the chance of a PPI style payback?

Good point but the potential numbers must be phenomenal for mortgage payers?

 

[MK1 Photography]

Yes the sentence is harsh but what about the millions we have spent extra because of it?

 

[dejongj]

Yes the sentence is harsh but what about the millions we have spent extra because of it?

Can we have it back please I'd rather have that than seeing us spend more money on people in prison. I would have thought that in 2015 we could come up with more positive corrective action.

 

[MartynK]

Yes, partly the reason for a prison sentence is rehabilitation, it's partly punishment and it's partly to protect the public by separating the criminals from them.

You left out deterrence, but I suppose there's another debate about that.

 

[Llamaman]

Considering the impact these traders/companies illegal actions had on most peoples lives (mortgage/loan rates etc) what's the chance of a PPI style payback?

My understanding was that in most cases, LIBOR was kept artificially low. Mortgage owners will have saved money because of the rate fixes. Who wants to write their bank a big cheque? Anyone?

It'll be the mortgage providers themselves who will bring action, but the sums will be so large the cases will drag on for years. I don't foresee a PPI-style payback to millions of consumers.

 

[boliston]

surely building societies will have paid lower rates to savers if libor was kept low so the lower rates charged to borrowers would not have much of an impact

 

[Llamaman]

But the amounts of the mortgages will be larger than the amounts held as deposits.

 

[boyfalldown]

It seems a little strange, considering the checks & controls there are in the city that he was able to rig this without anyone else's knowledge. And probably their implicit blessing.

 

[Llamaman]

There were odd comments about LIBOR looking "wrong" in 2007/2008, so it came as no great surprise that this had been going on.

And I simply don't buy it that these were rogue traders. Same with Kerviel. Post-Barings, there are systems and controls to prevent this kind if thing... if you want to.

 

[POAH]

not overly harsh, fraud has some heavy penalties attached to it. also remember that's 8 convictions he got. in the states he'd be looking at double that figure

 

[dejongj]

My understanding was that in most cases, LIBOR was kept artificially low. Mortgage owners will have saved money because of the rate fixes. Who wants to write their bank a big cheque? Anyone?

It'll be the mortgage providers themselves who will bring action, but the sums will be so large the cases will drag on for years. I don't foresee a PPI-style payback to millions of consumers.

I'm not pretending to be an expert but I understood it to be different. The banks actually need to borrow money to lend it to you. And what it mend was that their costs went up and couldn't lend you the money as cheaply as they could otherwise as they weren't making it. Hence it would affect mortgage borrowers by the consumer rates being higher over the boe than necessary. As such I do think the point made that it did affect us is correct.

 

[dejongj]

It seems a little strange, considering the checks & controls there are in the city that he was able to rig this without anyone else's knowledge. And probably their implicit blessing.

Exactly my point. I know that the systems aren't as rigorous as in other industry, nevertheless they are still there.

 

[Mr Bump]

heavy sentence as it had massive impact on finance as was a huge breach of trust.
tough call, but he will be out in 5 or even less probably.