Global regulators are probing whether banks colluded to rig the London interbank offered rate, the benchmark interest rate for more than $360 trillion of securities worldwide -- from mortgages to student loans. Barclays last week was fined a record £290 million by U.S. and U.K. regulators for systematically attempting to rig the rate for profit. At least a dozen banks are still being probed, while British prosecutors are weighing whether to open a criminal investigation.
Pakistan raised $1.13 billion in an auction of licenses to run third- and fourth-generation mobile- phone networks that will help boost the country’s foreign reserves in an economy hit by energy shortages.
Russian companies, facing $115 billion of debt due over the next 12 months, will have the funds even as bond markets shut because of the Ukraine crisis, according to Moody’s Investors Service and Fitch Ratings.
Three ex-ICAP Plc brokers accused of manipulating benchmark interest rates tied to the Japanese yen conspired with Tom Hayes, a former UBS AG and Citigroup Inc. trader who was the first to be charged in the global probe, prosecutors said.
The unprecedented amount of cash the Federal Reserve has pumped into the financial system is proving more powerful for money-market rates than Chair Janet Yellen’s signals she will start turning off the spigot.