The libor game, global financial markets and
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Robo Bank and its employees were involved in illegal activities related to manipulating LIBOR submission rates to benefit themselves financially. LIBOR manipulation impacted global markets in several ways. It negatively affected capital markets since LIBOR is a reference rate for many financial instruments. It also impacted currency exchange rates and inflation levels. Mortgage rates, student loan rates, and commodity prices were all influenced by shifts in LIBOR. In India specifically, LIBOR manipulation hampered capital markets since the MIBOR rate is set in reference to LIBOR. Additionally, fluctuations in the INR currency rate compared to the dollar and euro despite economic conditions could partially be attributed to manipulation of the LIBOR rate, which influences global currency markets.
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Net India123 - Sept 22, 2008 - Markets close nearly flat as traders grapple w...
Net India123 - Sept 22, 2008 - Markets close nearly flat as traders grapple w...Jagannadham Thunuguntla
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have some impact on markets as foreign institutional investors will now tend to stick to assets
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National News Of India - Sept 22, 2008 - Markets close nearly flat as traders...Jagannadham Thunuguntla
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Competition commission of india
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The Tokyo Stock Exchange was established in 1878 and is currently the third largest stock exchange in the world. It reopened in 1949 after being shut down during World War II. The exchange switched to electronic trading in 1999 and restructured as a stock company in 2001. It has over 2,200 listed companies with a total market capitalization of over $4.5 trillion, and is regulated by the Financial Service Agency.
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THE INGLORIOUS FALL OF LIBOR by CA. Sudha G. Bhushan
The 2008 Financial Crisis changed the world of Banking. Many malpractices by the Banks and various financial institutions came into light and the regulators started scrutinizing and penalizing them. The world’s most important number “LIBOR” came under the sword of the Regulators. In this article we will explore the origins and the fall of the once revered LIBOR rate.
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London Interbank Offered Rate (LIBOR) is the most popular interest rate benchmark that financial institutions use globally. And this rate is used by banks for all their inter-bank short-term loan arrangements.
To know more about it, click on the link given below:
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LIBOR (London Interbank Offered Rate) is the benchmark interest rate at which major global banks lend to one another. It is calculated daily by taking the average rate that a panel of major banks say they would be charged if borrowing from other banks. LIBOR is used as a reference rate for trillions of dollars of financial products including mortgages, credit cards, and student loans. In 2012, it was discovered that banks had been manipulating LIBOR submissions, resulting in a major global scandal. The LIBOR benchmark is being phased out and replaced by 2021 with alternative risk-free rates such as SOFR in the US.
London Interbank Offered Rate By Maroof Hussain
LIBOR stands for the London Interbank Offered Rate, which is the average interest rate that major global banks charge each other for short-term loans. It is calculated daily by surveying banks and discarding the top and bottom quartiles of quotes, then averaging the remaining rates. LIBOR rates are provided for periods up to 12 months in major currencies and influence many financial instruments, including interbank lending, other lending rates, Eurodollar futures, and interest rate swaps.
Libor
The London Interbank Offered Rate (LIBOR) is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks. LIBOR rates are calculated daily for various currencies and loan periods and are used as a benchmark for trillions of dollars' worth of financial products. Regulators have found that banks manipulated LIBOR submissions between 2007-2009 to benefit derivatives trades and portray more favorable perceptions of their financial strength during the global financial crisis. Several banks have paid billions in fines, and major reforms are underway to improve the oversight and integrity of the LIBOR benchmark interest rate.
Unsuccessful mergers and acquisitions in India
The document provides an overview of the Indian rupee (INR) currency over time, focusing on factors that affect its value and major currency crises in India. It discusses key factors like the balance of payments, fiscal deficits, economic reforms, political instability, and special events. Major currency crises discussed include the 1966 devaluation crisis brought on by war spending and drought, and the 1991 crisis where foreign reserves dropped dangerously low, forcing the government to airlift gold reserves and seek an IMF loan while implementing economic reforms to stabilize the currency. The document analyzes the INR's decline since independence and effects of the 1991 liberalization policies.
LIBOR
Libor is the average interest rate calculated by contributing panel banks in London that they determine they would be charged if borrowing from other banks. It is used as a benchmark for short-term global interest rates and is referenced in over $800 trillion in financial products. Libor submissions and calculations have faced scrutiny over manipulation by banks for profit. Regulators have since levied billions in fines against banks for attempted manipulation of Libor submissions between 2007-2012.
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The LIBOR (London Interbank Offered Rate) is the average interest rate that leading banks in London charge each other for short-term loans. It is calculated daily by Thomson Reuters and published on behalf of the ICE Benchmark Administration. LIBOR is widely used as a benchmark for short-term interest rates globally and serves as the basis for many financial products including futures, options, swaps, loans, and mortgages. The LIBOR scandal arose when banks were found to have manipulated their submitted rates, affecting the calculation of the LIBOR benchmark and impacting consumers and financial markets worldwide.
The Sinking Rupee
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Barclays case and libor
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India Public Affairs Round-up - Issue 2
The Indian rupee’s recent roller-coaster ride has impacted virtually every section of society. It has hit the country’s finances, eroded investor confidence, pushed down stock indices, pumped up fuel prices and, in turn, those of essentials.
The rupee’s slide is symptomatic of the concerns about the India story. Months of policy paralysis, political churn and social standoffs have taken their toll. It is in this backdrop that senior journalist Subhomoy Bhattacharjee analyses the prospects of the rupee in the cover story of the August edition of PAR, MSLGROUP India’s public affairs newsletter.
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Callmoney markets
The call money market deals in short-term loans between banks with maturities ranging from 1 day to 2 weeks. It provides banks a source of highly liquid funds to meet temporary shortfalls or surplus. Key participants include commercial banks. Call rates fluctuate daily and even hourly based on demand and supply in the market. Rates also vary across cities due to differences in liquidity. Volatility is driven by factors like banks borrowing to meet reserve requirements, occasional disruptions, and interventions in foreign exchange markets that impact liquidity.
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The libor game, global financial markets and
- 1. The LIBOR Game, Global Financial Markets and India Presented By- Ketty Ghujan Krishnaja Manpreet Singh Grewal Prashant Ranjan Yasha Singh 1
- 2. 1. What is London interbank offered rate? How did things go wrong? Despite the LIBOR Fine imposed by regulators over 20 banks & FLs in August 2012, the tradition to misplay the markets still remains, as seen with RoboBank’s conduct. What is going on ? • LIBOR (the London Inter-Bank Offered Rate) is intended to reflect the average rate at which banks can obtain unsecured funding in the London money market for a given period and a given currency. 2
- 3. • Mr. Robson was constantly involved in doing illegal activities and conspiracy. Due to this bad intensions things went wrong in Robo Bank. • In LIBOR panel banks are selected by CE Benchmark Administration (IBA) according to their market volume, reputation. • To maintain their market volume many banks are involved in misplay. So that they can earn more profits. 3
- 4. 2.Given the LIBOR Game being played between the Brokers and Large Financial Institutions/ Banks, what is expected impact on: a) Global Capital Market b) The Global Currencies (US$; Euro& INR) c) Mortgage Market d) Inflation (Globally & in India) e) Student Loans f) Commodities (Agro Goods; Crude Oil & Gold) 4
- 5. • Global Capital Market- • LIBOR game will have negative impact on capital market because LIBOR is considered as a reference point for all financial instruments. • The Global Currencies (US$; Euro& INR)- • It will have an affect on currency market also. As, LIBOR rates are quoted in 10 currencies therefore it would affect the demand and supply of currencies. 5
- 6. • Mortgage Market- • It will affect because LIBOR helps in fixing interest rates for the mortgage market. It gives idea at what rate could borrower borrows fund. • Inflation (Globally & in India)- • LIBOR rates will influence the interest rate of economy. Hence, it will influence the inflation which is inversely related to interest rates. 6
- 7. • Student Loans- • As LIBOR increases loans will be given at higher rate and vice-versa. So, there is a positive relation between LIBOR rates and student loans. • Commodities (Agro Goods; Crude Oil & Gold)- • LIBOR will influence the rate of return which is fixed in reference to LIBOR rate. 7
- 8. 3. How does this impact the Indian Capital Markets? • It will hamper the Indian capital market. • The Libor is widely used as a reference rate / bench mark for many financial instruments in both financial markets and commercial fields. • MIBOR is fixed in reference to LIBOR rate. 8
- 9. 4. The US$ and EURO have weakened on account of Fiscal Debt Crisis in Europe & Double Dip Recession announced by the US Government. This ought have had a positive impact on the INR giving a push up (appreciation). However the INR has observed a substantial Fall(Weakening) in September 2011 and May-Sep 2012 of over INR 10-15 against a Dollar and INR 6-8 against a EURO. Is there any role of the LIBOR in this and what are other possible reasons. 9
- 10. • Yes, there was a role of LIBOR in this. • LIBOR affects mortgage market, currency market, and another credit products. Since LIBOR rates will affect the global currency market it will affect the appreciation and depreciation of Indian Rupee. • And the other possible reasons are slowing growth, high inflation and widening fiscal and current account gaps. 10
- 11. 11