In May 2007, Standard & Poor’s confirmed its initial AAA ratings on $772m of a collateralized debt obligation known as Octonion I. Within 10 months, the Citigroup deal defaulted, costing investors and the bank almost all their money.
"It's just amazing how Libor fixing can make you that much money," declared one Royal Bank of Scotland trader in 2007. It's also amazing how long senior management at RBS took to fix the bank's Libor controls once the rotten stench emerged.
Tim Geithner, who once said he would not write a book after he left the Treasury Department, is writing a book.
The more than $600 million settlement between the bank and several global regulators for manipulating benchmark interest rates is another glaring example of the financial sector run amok and the head of the CFTC says regulators around the globe need bigger and heavier hammers.
A multistate probe of alleged manipulation of interest rates threatens to leave banks liable for billions of dollars in estimated state and local losses from the scandal, even as they settle with national regulators.
Costs are still key.
A Royal Bank of Scotland trader allegedly colluded with a counterpart at UBS to pay almost $330,000 in bribes to brokers willing to help them manipulate global interest rates, regulators said.
When you look at the fines in context of the bank's revenues, the $612 million in fines looks more like a speeding ticket.
More than 10 City workers are under investigation by the Financial Services Authority for rigging Libor, a top regulator said after Royal Bank of Scotland was fined £390m for manipulating the key benchmark rate.
Big banks that rigged interest rates behaved in "brazen, flagrant" fashion, the head of the Commodities and Futures Trading Commission told CNBC on Wednesday, adding that imposing hefty fines were needed as a deterrent to bad behavior.
Worldwide announced Mid-Market M&A deals valued up to $500 million (including undisclosed value deals) totaled US$440.9 billion for the first half of 2015, a 6.3% increase year-on-year.
Summer clothing sales are expected to have pulled UK inflation back down to zero last month, bringing more relief to households and taking pressure off the Bank of England to raise interest rates any time soon.
Starbucks chief executive Howard Schultz on Monday launched a plan for more than a dozen big US businesses to hire 100,000 young unemployed people by 2018.