The fallout from the Libor rate-fixing scandal may be more dramatic and costly than first thought. Barclays' $450 million settlement with U.K. and U.S. regulators is just the beginning, says The Wall Street Journal. Insurers, lenders and individual investors are lining up to take a piece of Barclays and other financial institutions accused of colluding to manipulate bond rates.
Potential liabilities for Barclays and other banks being investigated – Bank of America, Citigroup and J.P. Morgan Chase – could reach as high as $176 billion, according to one recent estimate, although other analysts project claims will range from roughly $8 billion to $47 billion, says the Journal.
Although Barclays is the current linchpin of the Libor scandal, the British bank may actually be in a more enviable position than other firms linked to the rate-fixing fiasco that have failed to admit any wrongdoing, Bart Naylor, an expert in financial regulation at the consumer advocacy group Public Citizen, told NBC News.
One point of contention in the lawsuits is whether or not the banks under investigation worked together to manipulate the rate, a charge that the firms have reportedly denied, leading them to file motions to dismiss the suits.
Banks embroiled in the scandal have been making moves to prevent a repeat occurrence. Barclays recently appointed David Walker, a former U.K. treasury official with a long history in corporate governance, as its chairman.
Claws are Out (CNN)
In a possible preview of things to come, Deutsche Bank on Monday became the first global financial institution to impose rules that enable the bank to claw back stock awarded to executives by former employers.
On the Chopping Block (CNBC)
As part of its vast cost-cutting plans, Nomura Holdings is preparing to cut hundreds of jobs in its equities and investment banking sectors, among others.
Schwarzman's List (Reuters)
Blackstone Group Chief Executive Stephen Schwarzman doesn't plan on retiring any time soon, but he is grooming potential successors. The latest is Joe Baratta, 41, the new global head of private equity at Blackstone.
Internal Libor Probe Growing (Financial News)
Russell Collins, a veteran chartered accountant who last held the role of vice chairman at Deloitte, will work alongside Anthony Salz to lead Barclays' internal investigation into the Libor rate-fixing scandal. Collins will act as Salz's number two.
Jefferies' Director Out (Financial News)
Jamie Graham, managing director and head of equity-linked securities for U.S. investment bank Jefferies' European operations, was terminated last week. No word on the reason.
Calamos Bets on Black (Denver Business Journal)
One-time Janus Capital Group CEO Gary Black will join Calamos Investments as its new co-chief investment officer, succeeding Nick Calamos, who is leaving the firm to pursue personal interests. Black's team from Black Capital will also be joining Calamos Investments.
Pay Cuts (WSJ)
More than half of long-tenured workers who lost their full-time job between 2009 and 2011 and who found new work accepted positions at lower salaries.
Buzz Around the Office
Don't Be Obtrusive and You'll Live Forever, Apparently (MSN)
The world's oldest person turned 116 on Sunday. Her key to living a long life? "I mind my own business…and I don't eat junk food." Both habits sound rough.
List of the Day: Lessons from "Dirty Dancing"
"Dirty Dancing" is awkward in all the right ways. That doesn't mean your job needs to be. Here are a few lessons the 1980s classic can teach us.
1. Money isn't everything. Follow your heart when making career decisions.
2. Sometimes you need to take a risk and break the rules.
3. You're going to make mistakes. Own them.
(Source: The Daily Muse)