The euro turned higher in choppy trading Wednesday as traders reacted to headlines that the ECB is unlikely to take new action early next week.» Read More
What exactly can be done to fix the Libor system or is it worth fixing at all? Catherine Boyle has more.
The thousands of community banks have often said their much larger counterparts have trampled on them. Now some hope the latest Wall Street scandal could give them ammunition to strike back.
"Over regulation, over comforting that is given to all sorts of people, banks are not allowed to do this, banks are not allowed to do that, this over regulating is a crazy idea, you need a working banking system that is how capitalism and the western world works," Anthony Gibbs, senior Gilts broker at Vantage Capital Markets, told CNBC.
Libor is “structurally flawed” and an international effort would be needed to restore the rate’s credibility as the leading benchmark for mortgages, derivatives and corporate lending around the world, Ben Bernanke, US Federal Reserve chairman, told Congress on Tuesday, the Financial Times reports.
In this excerpt from a live interview at the "Delivering Alpha" conference presented by CNBC and Institutional Investor, Treasury Secretary Timothy Geithner defends his actions in 2008 after the New York Federal Reserve learned that Barclays and other banks were not reporting accurate data on a key London-based interest rate. He also promises more enforcement is coming.
"There is a real confluence of events here, the British banks are getting repeatedly nailed by the US authorities this month, there is a risk here that the US authorities, whether it is lawmakers or regulators start to perceive the British banking industry as a lawless cesspit," David Enrich, European banking editor at the Wall Street Journal, told CNBC.
"The Bank of England at that time were desperate to try and get interest rates down because they were so worried about the state of the economy and the state of the financial system and every bank has an incentive to show that it has a low cost of funds to show that it is financially stable," Jan Toporowski, professor of Economics, SOAS, told CNBC.
Bank of England governor Mervyn King and his deputy Paul Tucker are going to be in front of the Treasury Select Committee the Libor scandal isn't officially on the agenda but clearly that is going to come up and may have implications for central bank succession planning. Catherine Boyle has more.
A drought-fueled rally in soybeans, corn and wheat is raising fears of another round of food price inflation, posing an unwelcome complication for policymakers, particularly in emerging Asia, where higher consumer prices may hinder their ability to ease monetary policy.
Trying to ride a risk rally in currencies? Better hold on tight.
Trader Stephanie Link is keeping a close eye on a sell-off. "If it gets down to the low $80's I'd pull the trigger," she says.
"When Bob Diamond was going on the stand I said I didn't think we would learn a great deal and I don't think we did to be quite honest, Barclays had released the information that's why I was pretty comfortable Bob wouldn't give us anything further," Chris Wheeler, bank analyst at Mediobanca, told CNBC.
"The Libor problem is a London trading problem mostly," says Richard Holwell, Holwell Shuster & Goldberg partner, discussing whether JPMorgan traders will face criminal charges on losses associated with risky bets on corporate debt.
In light of the recent scandals at Barclays, JPMorgan Chase, and others, the obvious question that must be asked is: Where was the board?
As regulators ramp up their global investigation into the manipulation of interest rates, the Justice Department has identified potential criminal wrongdoing by big banks and individuals at the center of the scandal. The New York Times reports.
Mary Jo Jacobi, fmr assistant US Secretary of Commerce, told CNBC, "I don't see how we can avoid the Libor scandal blowing up, it is a big scandal you have disclosures from the New York Fed going back to 2008, you have Deutsche Bank turning states evidence in a plea for leniency, who knows where else it is going to go."
Tim Bush, head of governance and Financial Analysis at PIRC (Pensions Investment Research Consultants Limited) and Simon Nixon, European editor at the WSJ, joined CNBC to discuss whether the the Libor scandal will shift focus from Barclays.
Discussing whether Timothy Geithner should have taken more action, by "jawboning" the bank, with Mark Calabria, The Cato Institute, and Darrell Duffie, Stanford University.
The Libor rate-rigging scandal has had an adverse effect on London’s reputation as a leading financial center, Mark Boleat, policy chairman at the City of London Corporation, told CNBC.
Italy gets a downgrade; videogame sales continue to plummet; Ackmans sets sights on P&G; Lexmark revises outlook and Google’s Larry Page is back in the office.