Money 6 Canadian Banks Accused Of Manipulating Interest Rate Benchmark For Profit

23:06  18 january  2018
23:06  18 january  2018 Source:   Huffington Post Canada

Lawsuit in U.S. accuses nine banks of rigging Canadian rate benchmark

  Lawsuit in U.S. accuses nine banks of rigging Canadian rate benchmark By Jonathan Stempel and Matt Scuffham define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.recentquotesurl = "/en-ca/money/getrecentquotes"; config.commoditydetailsurl = "/en-ca/money/markets/commoditydetails"; config.currencyConverterUrl = "/en-ca/money/currencyconverter"; config.

WHITE PLAINS, N.Y. — A class-action lawsuit filed in a U.S. court alleges six Canadian banks and three others conspired to increase the profitability of their derivatives trading company by manipulating an interest rate benchmark for about seven years.

WHITE PLAINS, N.Y. — A class-action lawsuit filed in a U.S. court alleges six Canadian banks and three others conspired to increase the profitability of their derivatives trading business by manipulating an interest rate benchmark for about seven years.

  6 Canadian Banks Accused Of Manipulating Interest Rate Benchmark For Profit © THE CANADIAN PRESS/NATHAN DENETTE

A class-action lawsuit filed in a U.S. court alleges six Canadian banks and three others conspired to increase the profitability of their derivatives trading business by manipulating an interest rate benchmark for about seven years.

The Fire & Police Pension Association of Colorado filed the claim against BMO, Bank of Nova Scotia, CIBC, National Bank of Canada, Royal Bank of Canada, TD and three others at the United States District Court for the Southern District of New York on Friday.

The claim alleges the banks manipulated the Canadian dealer offered rate — which reflects what rate contributors are willing to lend to corporate clients using an instrument called a bankers' acceptance — from at least Aug. 9, 2007, to June 30, 2014.

B.C. consumers fearful of not being able to pay bills as interest rates expected to rise, says poll

  B.C. consumers fearful of not being able to pay bills as interest rates expected to rise, says poll According to a national accounting and business consultant, the increasing pressure of rising interest rates are leaving British Columbians with significantly less disposable income and consumers need to make adjustments to avoid insolvency."What consumers really need to do is be clear about what they're spending their money on," said Lana Gilbertson a senior vice-president with MNP's Insolvency group in Vancouver."They really have to put pen to paper and keep track of their expenses over a three-month period at the very least.

A Colorado-based pension fund accused Canada ’s six biggest banks and three foreign lenders of conspiring to manipulate a Canadian interest rate benchmark to boost “illegitimate profits ” on derivatives trades for several years until 2014.

A Colorado-based pension fund accused Canada ’s six biggest banks and three foreign lenders of conspiring to manipulate a Canadian interest rate benchmark to boost “illegitimate profits ” on derivatives trades for several years until 2014.

Banks declined to comment

The claim alleges the banks suppressed the rate by making artificially lower interest rate submissions to Thomson Reuters, which calculates the CDOR daily.

The court filing also says that suppression increased their profits from CDOR-based derivative positions.

Scotiabank, RBC, National Bank of Canada and CIBC declined to comment, and none of the remaining big six banks immediately responded to a request for comment. None of the allegations have been proven in court.

The Investment Industry Regulatory Organization of Canada reviewed existing practices for the CDOR in 2012-13, and in 2014, the Office of the Superintendent of Financial Institutions announced it would supervise the CDOR submission processes.

Legendary Edmonton jazz pianist, ex-senator Tommy Banks dead at 81 .
Tommy Banks won both a Juno and Gemini award, hosted The Tommy Banks Show from 1968-83 and numerous other TV programs, and performed throughout North America and around the world. Officer of the Order of Canada The accomplishments listed on Banks's website includes his role as a guest conductor for numerous symphony orchestras, including 12 in Canada, and his musical direction for Olympic and Commonwealth Games and for such dignitaries as Queen Elizabeth and Pope John Paul.

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