“I Think We Got Away with It”

2020 ◽  
pp. 41-74
Author(s):  
Pierre-Hugues Verdier
Keyword(s):  
Interest Rate ◽  
Foreign Exchange ◽  
Department Of Justice ◽  
Futures Trading ◽  
The World ◽  
Leadership Turnover ◽  
Libor Manipulation ◽  
Central Bankers ◽  
Global Banks ◽  
The U.S

This chapter examines the enforcement campaign against manipulation of interest rate and foreign exchange benchmarks by traders and other employees of global banks. After reviewing the history, functioning, and weaknesses of LIBOR, the world’s most important interest rate benchmark, the chapter relates how the banking industry, banking regulators, and central bankers responded ineffectively to signs of LIBOR manipulation that emerged in 2008. By contrast, robust enforcement actions spearheaded by the U.S. Department of Justice and the Commodities Futures Trading Commission, beginning with the Barclays case in 2012, attracted worldwide attention. They led directly to parliamentary investigations, leadership turnover at some banks, and significant domestic and international benchmark reforms, culminating with an industry-wide shift away from LIBOR toward more reliable indices. Likewise, the foreign exchange manipulation scandal and related prosecutions led to the adoption of international reforms. In both cases, several individuals were also charged criminally, most notably UBS trader Tom Hayes. By using its authority over global banks to protect the integrity of widely used financial benchmarks that have the characteristics of public goods, U.S. actions benefited users of these benchmarks around the world.

FINANCING PETROLEUM DEVELOPMENTS IN THE 1990'S

1993 ◽  
Vol 33 (1) ◽  
pp. 431
Author(s):  
Nick Palethorpe
Keyword(s):  
Interest Rate ◽  
Foreign Exchange ◽  
Banking Sector ◽  
Oil Price ◽  
Advanced Technology ◽  
The World ◽  
Reduce Risk ◽  
Managing Risk ◽  
Hostile Environments ◽  
Loan Losses

Banks in many parts of the world, including Australia, have tightened credit because of their level of loan losses in the late 1980's and early 1990's. However, recent financings of petroleum projects in this region indicate that the banks' appetite for such lending has not been adversely affected. In fact, banks which lent to Australian petroleum projects in the 1970s and 1980s have generally not only had a return on their money but have also had the return of their money.The funding requirements for Australian petroleum developments in the 1990s and beyond appear considerable. It is expected that there will be keen competition from the banking sector to supply these funds.The need to properly assess and mitigate the risks inherent in such developments will continue, if not heighten, as advanced technology, often in hostile environments, is required to develop more marginal fields.In so far as oil price, foreign exchange and interest rate risks are concerned, there is likely to be a growing emphasis by banks on managing risk so as to contain what historically have been high levels of volatility. A number of products have been developed by banks to manage these risks and if correctly applied they can also serve to reduce risk. There is some cost, however this can be offset by application of the same bank products. By reducing risk it is also possible to obtain higher levels of debt.

World trends of derivatives` market development

2020 ◽  
pp. 58-64
Author(s):  
Kostyantyn Vozianov
Keyword(s):  
Interest Rate ◽  
Foreign Exchange ◽  
Global Economy ◽  
Global Market ◽  
Market Development ◽  
Risk Level ◽  
Modern World ◽  
Over The Counter ◽  
The World ◽  
Monetary Relations

Derivatives markets have long ago started to be an important part of the global market in general and international monetary relations in particular. They make the process of risk management more advanced. It helps bringing the global monetary relations to a higher development level. Global trade in derivatives performs the functions of integration of regional capital markets and helps the global economy participants reduce available risks and concentrate on the further development of international trade and monetary relations. Therefore, the derivatives market contributes to reducing the risk level and balancing the international capital flow. Modern world trends in the derivatives’ market development are studied. The structure of the world derivatives market is determined with the separation of its exchange and over-the-counter parts. The instrumental structure of the market is analyzed with the separation of the most popular underlying assets among the derivatives market participants. The author notes that the share of interest rate and foreign exchange derivatives is constantly growing, with an advantage on the side of interest rate derivatives. The paper determines that there is a gradual shift of trade from exchanges to the over-the-counter market in the market of interest derivatives due to the passage of transactions through central counterparties, as well as the growing share of electronic and automatic trading. Analysis of the dynamics of foreign exchange derivatives reveals that contracts increasingly include currencies that do not belong to the top four (USD, EUR, JPY, GBP). At the same time, the US dollar remains the leading currency in operations with interest rate and foreign exchange derivatives. The cross-border operations with derivatives are analyzed. The paper proves that the global nature of the modern derivatives market can be supported by the recognition and implementation of global standards and the cooperation of regulators around the world.

Three Scenarios for the World Economy

1988 ◽  
Vol 2 ◽  
pp. 37-62
Author(s):  
Robert Z. Aliber
Keyword(s):  
Interest Rates ◽  
Foreign Exchange ◽  
World Economy ◽  
Foreign Exchange Market ◽  
Fiscal Deficit ◽  
Accounting Data ◽  
Net Exports ◽  
The World ◽  
Investment Spending ◽  
The U.S

Nineteen eighty-seven was a year of financial paradox. During the 1980s there was the strong perception that the Americans, the Europeans, and the Japanese were living well, contrasting with the accounting data that suggested the house of cards was about to fall. Three factors dominated the financial economy of 1987: the 25-percent drop in equity prices in mid-October, the apparent collapse of the U.S. dollar in the foreign exchange market, and the formal recognition by the major international banks that their losses on developing country loans would amount to at least $250 billion. The key question at the end of that year was whether the world economy was moving into a period of inflation or deflation. This essay identifies three possible scenarios. First, the decline in the foreign-exchange value of the U.S. dollar would lead to a rapid increase in U.S. net exports, an excessively large increase in demand for U.S. goods, and a run on the U.S. dollar, which would prompt more contractive monetary policies from the Federal Reserve and an increase in interest rates on U.S. dollars. Second, an increase in U.S. net exports would offset the decline in domestic spending from the smaller fiscal deficit and the less rapid growth of consumer spending. Interest rates on U.S. dollar assets would fall, which in turn would facilitate the expansion of income, and the U.S. fiscal deficit would automatically decline. Or, third, a second stock market meltdown might cause consumer and investment spending to decline more than the increase in net exports, resulting in a recession and a decline in the inflation rate and interest rates.

scholarly journals Competition of the world leading currencies: Features of the current stage

2021 ◽  
Vol 20 (11) ◽  
pp. 2074-2088
Author(s):  
Vladimir K. BURLACHKOV
Keyword(s):  
Financial Markets ◽  
Foreign Exchange ◽  
Global Economy ◽  
Foreign Exchange Market ◽  
Global Market ◽  
Leading Role ◽  
The World ◽  
Current Stage ◽  
The U.S

Subject. The article analyzes the competition of the world leading currencies in the global economy, specifics of the current stage, trends in the role of particular currencies in the global market. Objectives. The purpose is to review the current positions of the U.S. Dollar, Euro and Yuan in the global financial markets, assess prospects for maintaining the leading role of the U.S. Dollar, development trends in the position of Euro and Yuan. Methods. I applied the content analysis of available sources, provide a historical overview of issues under consideration, scrutinized the estimates of financial analysts. Results. The paper unveils reasons for increased competition of the leading currencies (U.S. Dollar, Euro, Yuan) in the global foreign exchange market, which include an increase in the scale of payment transactions in the global financial and commodity markets. It also reveals trends in the use of particular currencies in foreign trade and financial transactions, evaluates prospects for the use of specific world currencies in the global economy. Conclusions. At present, U.S. Dollar maintains its leading positions. However, in the future, an increase in the use of Euro- and Yuan-denominated transactions should be expected in the commodity and financial markets due to enlarged presence of Chinese companies in the global economy. Further development of European integration can ensure the expansion of the single European currency in the global financial market. The share of Yuan in foreign exchange reserves of central banks tends to increase. Private investors' demand for Yuan is also expected to grow.

scholarly journals «The Palmer raids» - reaction to «The Red Scare» and Edgar Hoover’s role in the actions of the U.S. Department of Justice

2019 ◽  
Vol 8 (3) ◽  
pp. 211-214
Author(s):  
Yaroslav Aleksandrovich Levin
Keyword(s):  
World War I ◽  
Attorney General ◽  
Main Body ◽  
Red Scare ◽  
Left Wing ◽  
Department Of Justice ◽  
The World ◽  
The Usa ◽  
Palmer Raids ◽  
The U.S

The paper is devoted to reaction of the U.S. Department of Justice to the October revolution of 1917 in Russia and the process which received the name The Red Scare in the historiography. The basic changes which happened in Russia, the ideas of radical social justice, the dictatorship of the proletariat and the world revolution during the last stages of the World War I led to an extremely negative perception of the Bolshevik party and its policy in the USA. The general unfriendly spirit was warmed up by various publications accusing V.I. Lenin and his colleagues of communications with Germany (well-known Sissons documents) as well as by various publications in the press. At the same time, the revolution in Russia became an ideological beacon for anarchists and socialists worldwide including America. A special activity was shown by the galleanists organization (followers of the revolutionary and the ideologist of anarchism Luigi Galleani). From April to June 1919 they organized a series of explosions as well as attempts on the life of prominent politicians, businessmen and even the staff of intelligence agencies of the USA. In response to it the Attorney-General Alexander Mitchell Palmer initiated a series of military actions directed against all left-wing parties and groups in the country. The Bureau of investigations became the main body that was occupied in these actions. The paper analyzes the raids that were carried out by BI, their features and effects as well as the career of John Edgar Hoover, who was Palmers personal assistant at that time and later became a director of FBI.

Actual Problems of Economic Policy

2003 ◽  
pp. 23-38 ◽  
Author(s):  
M. Ershov
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Foreign Exchange ◽  
World Economy ◽  
Domestic Economy ◽  
The World ◽  
Exchange Policy ◽  
Effective Integration

At present Russia faces the task of great importance - effective integration into the world economy. The success of this process largely depends on the strength of the domestic economy and stable economic growth. To attain such a goal certain changes in economic approaches are required which imply more active, focused and concerted steps in the monetary, fiscal and foreign exchange policy.

A4. UNRWA, IMPACT OF THE FIRST PHASE OF THE SECURITY BARRIER ON THE QALQILYA, TULKARM, AND JENIN DISTRICTS, GAZA CITY, JULY 2003 (EXCERPTS).

2003 ◽  
Vol 33 (1) ◽  
pp. 153-160
Keyword(s):  
Civil Engineering ◽  
West Bank ◽  
The West ◽  
Full Report ◽  
The World ◽  
Aid Coordination ◽  
President Bush ◽  
Engineering Projects ◽  
The U.S

The separation wall, one of the largest civil engineering projects in Israel's history, has been criticized even by the U.S. administration, with Condoleezza Rice stating at the end of June 2003 that it ““arouses our [U.S.] deep concern”” and President Bush on 25 July calling it ““a problem”” and noting that ““it is very difficult to develop confidence between the Palestinians and Israel with a wall snaking through the West Bank.”” A number of reports have already been issued concerning the wall, including reports by B'Tselem (available at www.btselem.org), the UN Office for the Coordination of Humanitarian Affairs (available at www.palestinianaid.info), and the World Bank's Local Aid Coordination Committee (LACC; also available at www.palestinianaid.info). UNRWA's report focuses on the segment of the wall already completed and is based on field visits to the areas affected by the barriers, with a special emphasis on localities with registered refugees. Notes have been omitted due to space constraints. The full report is available online at www.un.org/unrwa.

Interest Rate Caps around the World: Still Popular, but a Blunt Instrument

2014 ◽  
Author(s):  
Samuel Munzele Maimbo ◽  
Claudia Alejandra Henriquez Gallegos
Keyword(s):  
Interest Rate ◽  
The World ◽  
Interest Rate Caps

Institutional actors: Children’s emerging beliefs about the causal structure of social roles

2019 ◽  
Author(s):  
Alexander Noyes ◽  
Frank Keil ◽  
Yarrow Dunham
Keyword(s):  
Soccer Player ◽  
Social Roles ◽  
Social Role ◽  
Causal Structure ◽  
Executive Orders ◽  
The Social ◽  
The World ◽  
Children's Beliefs ◽  
Institutional Actors ◽  
The U.S

Institutions make new forms of acting possible: Signing executive orders, scoring goals, and officiating weddings are only possible because of the U.S. government, the rules of soccer, and the institution of marriage. Thus, when an individual occupies a particular social role (President, soccer player, and officiator) they acquire new ways of acting on the world. The present studies investigated children’s beliefs about institutional actions, and in particular whether children understand that individuals can only perform institutional actions when their community recognizes them as occupying the appropriate social role. Two studies (Study 1, N = 120 children, 4-11; Study 2, N = 90 children, 4-9) compared institutional actions to standard actions that do not depend on institutional recognition. In both studies, 4- to 5-year-old children believed all actions were possible regardless of whether an individual was recognized as occupying the social role. In contrast, 8- to 9-year-old children robustly distinguished between institutional and standard actions; they understood that institutional actions depend on collective recognition by a community.

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