July 28, 2012

Dutch Central Bank DNB investigates Rabobank

DNB onderzoekt Rabobank (NOS, Dutch)

engl. translation:

The DNB, (Dutch central bank) investigates with support of of the financial markets authority (AFM) the role of the Rabobank in the Libor scandal. Sources confirmed that to the NOS. The investigation is running since last year.

DNB confirms that there is an investigation running about the creation of the Libor interest rate, but can't tell anything about the role of Rabobank. The Euribor interest rate is also under investigation. That's the European counterpart of the Libor rate of London. Besides that foreign oversights look into the role that Rabobank played in the Libor scandal.

The bank confirms that multiple oversights are looking into the case. A spokesperson says that the bank is fully cooperative.

Fixing
The Rabobank belongs to a panel of banks that daily determines the Libor rate. That rate is known to be the base for uncounted credits and loans. Recently a scandal came to light when the British bank Barclays confessed to have rigged the rate. The bank settled the case with the British & American authorities with an amount equivalent of 370 million Euros. In other countries there are investigations, too.

This week the German minister of consumer protection called upon Deutsche Bank to come clean. "It cannot be that consumers have to pay the bills of traders who are manipulating interest rates without scruples."

No comment
According to the [newspaper] Financieel Dagblad the Rabobank has discharged four employees in 2008 and 2011 who have been possibly involved in the scandal. The Rabobank didn't want to comment on the case.

The employees have allegedly communicated too high or just too low interest rates, because their colleagues on the trading floor had advantages from a Libor rate that was a bit higher or lower than everyone expected. With that approach they could achieve substantial profits.


cat=banking
chapter=none
last update=July 28th 2012

Opinions of world financial & political leaders on eurozone

Just a collection of links:

Jul 31st 2012   Obama says eurozone will survive, but decisions urgent
Carlos Slim:EU has wrong approach to crisis (NOS)(dutch)
Paul Volcker: Germany must assume more responsibility for Europe (Cicero.de)(German)
Buffett says euro zone not working
David Cameron: the eurozone must make up or break up
David Cameron defends 'make up or break up' euro warning
Feb   2nd 2012 US Fed's Ben Bernanke warns on eurozone stress
June   8th 2012 Eurozone debt crisis puts US at risk, warns Bernanke
May 14th 2012 El-Erian: The Eurozone Is Facing A Lose-Lose Situation
Jun  29th 2012 Euro Zone Plan Good, but Not Good Enough: El-Erian


cat=eurozone
chapter=to be assigned
last update=July 28th 2012 17.45 CET

Italian structural flaws

Just a collection of links regarding structural flaws in economy & state

How can Sicily cut the bloated budget that is dragging it down?
Fears over Sicily's future as euro flow stops and bankruptcy looms
The six things wrong with Italy – and how to solve them (The Guardian, Feb 20t 2013)




cat=Italy, structural reform
chapter=to be assigned
last update=Feb 20th 2013

Greek structural flaws

just a collection of links to obvious flaws in economy & state structure:
Record rates of tax evasion on islands
Special Report: Clandestine loans were used to fortify Greek bank






cat=Greece, structural reforms
chapter=to be assigned 
last update=July 28th 2012