The Fed’s LIBOR Tools. Add Tacit Complicity?
The LIBOR Problem During the Financial Crisis, the Fed, the Treasury, and the FDIC were all fighting to keep the banks solvent. They all wanted banks to have access to cheap funds. The market became focused on LIBOR (and CDS) as a key indicator of the health of a bank. High LIBOR submissions were taken […]
Weekly T Report: What a Week! LIBOR, JPM, Spain, China, Earnings, Ireland
LIBOR LIBOR remains an issue for the banks involved. Many of the headlines are confusing, and some are just plain wrong. This issue isn’t going away any time soon, so understanding the potential impacts will be key as reactions to headlines will create opportunities. Only banks that were part of the LIBOR panel can get […]
The T Report: JPM Scorecard Evaluated
What To Watch For This is definitely one of the most anticipate bank earnings call since at least 2008. People are very focused and I expect to see some volatility in the stock as headlines hit. This is a little scorecard (I will avoid calling it a “cheat sheet”) of what I’m looking for and […]
JPM What to Watch For
What To Watch For This is definitely one of the most anticipate bank earnings call since at least 2008. People are very focused and I expect to see some volatility in the stock as headlines hit. This is a little scorecard (I will avoid calling it a “cheat sheet”) of what I’m looking for and […]
The Mess of Crisis Time LIBOR
Most Confusing Table I’ve EVER Sent out Date JPM Citi BofA DB HBOS RBS Barc UBS CS Nor BOTM HSBC 10/3/2008 100 345 105 114 228 235 189 171 91 77 55 52 10/3/2008 4.10 4.02 4.50 4.05 4.90 4.50 5.00 4.35 4.50 4.40 4.60 4.10 10/9/2008 103 400 113 102 181 246 149 191 […]
Pre-Crisis LIBOR – Facts and Details
Pre-Crisis LIBOR – Evil but Miniscule This is the most important chart of “pre crisis” LIBOR. I take the submissions from all 16 dealers, every day and compare the 4th highest to the 4th lowest. Neither of those data points would have been used, so it is an absolute maximum influence one dealer could have. […]
The World of LIBOR and Worst Case Lawsuits
The World of LIBOR We believe that we are in the early stages of what will happen with LIBOR. As we wrote yesterday, we believe there are two distinct phases the pre-crisis phase which saw potential manipulation of small amounts in both directions, and the crisis phase where LIBOR was allegedly much lower than the […]
The T Report: Lying LIBOR Banks, Spanish MOU, & Earnings
Spanish Bank Bailout The memorandum of understanding was “leaked” yesterday. I went through it and evaluated it. I rate it somewhere between a C+ and B- though with some room to improve. My biggest concerns were it seems to be a cumbersome slow moving process when speed is of the essence and that the terms […]
Barclay’s: The Keystone Cops of LIBOR Manipulation
Was Barclay’s Incompetent When Dealing with FSA? Here is the FSA’s report from June 27th. I will admit when I first looked at it, it seemed pretty damning. The dialogue was awful and the charts looked bad. But as I look through the details I have to say, Barclay’s seems incompetent in its own defense. […]
Spanish Financial Sector MOU – Analysis
Spain MOU: I give it a C+ or B- The devil is in the details and we finally have the Spanish Bank rescue details. The cost is not mentioned. We do not know the cost of the borrowing or how long it will last for. That ultimately will be key. Short dated, high coupon loans […]
