On Wednesday, the Justice Department announced that, together with a handful of other regulators, it would fine Wall Street banks some $US5.8 billion for their roles in the 2008 LIBOR interest rate and currency rigging scandal.
As we learn more about the investigations, we’re also learning about the crazy things the crooked traders said to one another in online chatrooms, where they most often went to communicate.
- Gems from the CFTC:
- COULD WE PLS HAVE A LOW 6MTH FIX TODAY OLD BEAN?
- COME ON. WE ALWAYS NEED HIGHER LIBORS !!! HAHA
- I’ll coordinatethe overnight in the same way as we did last week
- FIXINGS AS USUAL MONSIEUR?
- Amigo checked with my FFT their 3m euribor contributionwhich seems v low at 2.11 like ur FFT have u checked withyuoyr guys???
- you’re going to help me, promise me?????
- I JUST WANT TO CHECKWHETHER WE HAVE CONFLICTING INTERESTS INTHE JUNE 06 SETTLEMENT. IT DOESN’T MAKESENSE IF WE TRY TO PUSH ONE WAY AND U WLDLIKE TO HAVE IT THE OTHER WAY AROUND. WEWLD PREFER A LOW 3ME FIXING TO PUSH JUNE06HIGH. IS THIS UR PREFERENCE AS WELL?
- “its just amazing how libor fixing can make you that much money” (cited in the WSJ)
- “pure manipulation going on” (cited in the WSJ)
- And from the NY State Department of Financial Services (emphasis ours):
- “markup is making sure you make the right decision on price . . . which is whats the worst price i can put on this where the customers decision to trade with me or give me future business doesn’tchange . . . if you aint cheating, you aint trying.” (This quote came from the future co-head of UK FX Hedge Fund Salesat Barclays.)
- “everybody is in agreement in not accepting a local player as a broker?” “yes, the less competition the better.”
- “hard mark up is key . . . but i was taught early . . . u dont have clients . . . udont make money .. . so dont be stupid.”
- “give the rate that was most advantageous to the bank, but would not make the customer go away!”
- From the FCA:
- “boys well done…top work”
- “we delivered…but i dont wanna kiss from u…i just take a beer”
- When a firm asked Barclays whether they had any stop loss orders, it responded it had an order that was “primed like a coiled cobra … concentrating so hard … [as if] made of wax …[haven’t] even blinked.”
- “fooooooooooookkkkk” (when a particular trade went poorly)
- From UBS’ plea document:
- “mate yur getting bloody good at this libor game … think of me when yur on yur yacht in monaco wont yu.”
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