Photo: Flickr/Joseph Robertson
Is there anyone on the Street who didn’t see this coming?Ever since Barclays paid a huge settlement for manipulating the LIBOR last month, investigators have been looking into manipulation at all major Wall Street banks.
But this hasn’t been a time for solidarity (which is weird on the Street). Instead, Azam Ahmed and Ben Protess of The New York Times report, “banks are emphasising that ‘we’re not as bad as the next guy.”
In short: It’s kill or be killed. Here’s how we know — for one thing, the bank lawyers aren’t helping each other (from the Times):
With the rate investigation, institutions are not sharing information or even discussing the case with rivals, according to lawyers involved in the matter. In part, they do not want to appear to have close ties with their rivals, since such cozy relationships are part of the government’s inquiry.
“There is no information-sharing among banks unlike the past 15 years of federal investigations,” said a lawyer involved in the case.
Every bank is saying that, unlike Barclays, none of their C-level execs were involved in manipulation and everyone (from JP Morgan to Deutsche Bank) is cooporating with officials — and cutting deals, of course.
In trying to work out a deal, the British bank (Barclays) offered information on the multiyear scheme with Deutsche Bank, HSBC, Société Générale and Crédit Agricole, according to government and bank officials…
…UBS moved swiftly to strike an immunity deal with government authorities. In its inquiry, the Swiss bank uncovered that one of its former traders, Thomas Hayes, had apparently worked with employees at Deutsche Bank, HSBC and the Royal Bank of Scotland to influence rates and make profits, according to bank officials and court documents…
Citigroup is also said to be forthcoming as well.
Got that everyone? Friends just aren’t friends anymore.