After the Europeans who were asked to present testimony including Deutsche Bank, HSBC and RBS (royal Bank of Scotland) a month back, JP Morgan and more from Barclays were presented subpoenas by US regulators CIti and UBS received subpoenas earlier. It is widely known that UBS set the ball rolling on the scam reporting its trading and ‘estimating’ desks to the regulators in UK before shutting down rate operations in London and has been cooperating fully with UK regulators.
Barclays found out that US regulators are better placed in pushing financial fines and not easily manipulated unlike the longwinded decision bindings with no financial aftermath from the FSA and other UK watchdogs. Barclays has been banking on being first ith the settlement to avoid Criminal persecution and seemingly others also prefer getting pulled up by their domestic regulators and Central Bank than dealing solely with regulators in the USA
Kathryn Hanes, a spokeswoman for Deutsche Bank, said the lender has received subpoenas and requests for information from some regulators and governmental entities in the U.S. in connection with setting interbank rates and is cooperating.
New York-based Citigroup said in a regulatory filing that subsidiaries “have received additional requests for information and documents from various U.S. and non-U.S. governmental agencies, including the offices of the New York and Connecticut attorneys general.”
UBS said in a regulatory filing that numerous agencies, including “various state attorneys general” are investigating whether there were improper attempts to manipulate Libor and other rates. A second person familiar with the matter said the bank received a subpoena from New York in February. Both declined to comment because the matter is private.(Bloomberg)
JP Morgan is still trading up its recent lows of $33 after the London Whale tales wound down its CDS. Bank CDS earlier this week started trading down from heightened July levels of near 220 basis points to hardly 160 basis points incl JP Morgan. citi and BofA CDS still trade 226 and 229 bp according to a Reuters presser/round up of Independence Day date ( August 15)