fined barclays two hundred million dollars max it what the f.b.i. termed the largest coordinated international law enforcement action and history directed at carding crimes authority said the sting saved two hundred. four million dollars in potential fraud losses the defendants depending on their charges face prison terms ranging from five years to more than twenty five years so this is a card crime max but isn't that the same thing as what the libel rigging is because libel or rigging is rigging the interest rates upon which credit card interest rates are set so barclays is also involved in a card crime and yet do you see in the c.f. t c or the f.s.a. what announcement did you see any notice that any of these guys face any sort of criminal prosecution no lie boris like having a credit card with a three hundred trillion dollars line of credit and they commit fraud and they don't and then there were more crimes in the news this past week max wash trading by high frequency firms said to face us scrutiny who i'm so scared about you're screwing me that'

barclays is not alone in this. they are continuing to investigate the conduct of a number of other banks immolation to libor. it is continuing to commit significant resources to investigations into potential attempt to manipulate libor. it is continuing to work with counterparts overseas and with other arab parties in the u.k. and the investigation concerns a number of institutions both based in the u.k. and overseas, but it is already clear that the investigation demonstrates systemic failures at the heart of the financial system at the time. i want to thank turner and the team for a thorough piece of work. it big three questions. first, how woods -- how were such failures allowed to continue undetected particularly in the two years before the financial crisis when the most serious breaches occurred and the only motive was agreed? second, what changes are needed to our regulatory system in the future to prevent such abuse occurring again and make sure the authorities have every power they need to hold those respon

barclays has been disciplining the traders who tried to rig the market. not enough, says the leader of labor. >> i do want to seek criminal prosecution, and i do want to see those who have done the wrong thing, those who have committed what i think are atrocious acts, brought to justice. >> bad news for our banks. tomorrow, they will be chastised by the city regulator for imperiling small companies by selling them unsuitable products. >> as the banking sector is sent through another look in brussels, another european summit has opened to forge a way forward for the eurozone. the to the forever won the seeing eye to eye. angela merkel opposes the cooling of debt and wants to strengthen the powers of the you while france's president, francois hollande, wants to share the burden of debt without the addition power. a brief time ago, i spoke to our europe editor at the summit to help make sense of it all. and the people are saying they have met here 19 or 20 times since the crisis began, and there is certainly a lot of tension. the focus is on italy and spain

will barclays' big manipulation settlement undermine confidence?des of the story. >>> don't miss a first on cnbc interview with the ceo of the company of the day, arena pharmaceuticals, the firm that just got the fda approval of a first diet drug in more than a decade. the stock is up about 50% as a result. find out what it means to arena's bottom line. that's the top of the hour. bri january? >> thank you very much. >>> today's "disaster du jour" is fossil. to 80 from 95, still sees 8 bucks of upside from that. remember, though, back on may 16th, citi also upgraded of a buy and keep in mind, please, a -- can we bring up a three-year chart? it's 135 bucks last july. and then 135 bucks this past april. look at the wild swings. >> yep. >> in fossil. lost nearly half the value in aier. >> what's a "disaster deyour" that french accent. keeping with the glass half empty theme -- ♪ >> the rich seem to have lost the rose-colored glass. robert frank, here to explain. >> exactly. well the wealthy in a bit of a bad mood these days. a new survey shows that in

are you worried about barclays?the bright side, we've still got peter madoff. >> right. not all. >> you lose. we haven't even gotten to the court. >> bankers, has a banker gone to jail, brian? >> no. >> for robo signing. >> no. >> nobody is going to jail. >> nobody has walked the perp walk since 2008. >> i don't remember a single one. ait, nothing. these are the guys that brought down the western world. >> you're dealing with intense or incomp teps. there's a big difference. >> that's one thing. this is like -- >> it takes confidence. >> if you were a conspiracy theorist, you were right. >> trillions of dollars in all kinds of things like mortgages and beyond that. so, guys -- >> we will see you in just a bit. coming up, final diagnosis of what may happen in a couple of hours from washington from our guest host. and awards lift you up. ] s >>> we're back on a very newsy thursday morning. our guest host, dr. scott gotly, but we are going to get hopefully -- is it possible -- it's impossible not for us to find out som

wrongdoing or any of that that barclays has however you have to know that they're being investigated now so what this what barclays was doing and there have been e-mails that have been released that are just i mean just go look at them because they're just so damning i mean just very flippant legally what they were doing just what they're just very flipped out in these traders working with other banks and helping other banks to manipulate the rate to or asking them to help manipulate the rates as well and they were manipulating the rates in order to improve their derivatives positions to maximize profits to minimize losses from two thousand and five to two thousand and nine for sure maybe more than that and this is an interest rate that affects lending much more broadly than just for barclays so not only were they manipulate in this to get a good deal but i have some numbers i believe that the live or rate is tied to ninety percent of mortgages yet ninety percent of u.s. commercial and mortgage loans are thought to be linked to this live or index so this is the german is going to eve

barclays itself has to pay a 345 million euro fine for the offenses.nd aggregating factors that commercial banks are oriented on the libor rate. >> that average is what drives interest rates paid by hundreds of millions of people on their own mortgages, small businesses on their loans, student loans, insurance products. it affects a hugely diverse range of financial transactions globally, not just in the u.k. >> barclays is only the first bank to settle. authorities are investigating other large financial institutions, including j.p. morgan, credit suisse, and deutsche bank. >> let's get back to your 2012. spain were the first to reach the final. the defending champions beat portugal on wednesday night. >> that match went all the way to penalties. >> this penalty put spain in the final of euro 2012. the match was a tough battle from both sides. spain performed evenly in the first half. portugal put one just wide of the net after 30 minutes. spain's coach had to change tactics. portugal were holding their own. it thunderous shot just after the break. re

barclays chief executive bob diamond said the company, "fell well short of the standards to which barclaysaspires in the conduct of itsiness." diamond also said the company "took prompt action to fix the problems ando-operated extensively and proactively with the authorie most consumers haven't heard of libor, but banks and traders rely on it to help set prices foerything from derivatives to student loans, credit cards, and mortgages. >> reporter: barclays also agreed to cooperate with the justice department's criminal inveigation into these practices. that investigation spans across the financial industry. sylvia hall, "n.b.r.," washington. >> tom: blistering hot weather in the midwest sent corn prices higher again today. the december futures price for corn closed nine cents higher at $6.33 a bushel, up 24% in a week and a half. the heat reminds farmers of the 1988 drought, and as diane eastabrook reports, f thsome o are already tallying up losses. >> you can virtually find no moisture, we're just dry on down. >> reporter: its been nearly two weeks since carl neubauer's central illinois f

talking about that, barclay has agreed to pay $150 million u.s. to and european authorities that the banking giant manipulated liable between 2005 and 2009. not the only bank under investigation. damon, thanks for joining us. first of all, another thing that's happened out of london isn't it? we talked about jpmorgan, we talked about aig trading, ubs trading, what is this doing first of all for the status of london as a financial center? >> what it's doing is it's damaging it without a shadow of a doubt, libel isn't called the interbank for nothing. it's a historic interest rate that began in the mid-1980s. london was exploding as a great global financial center. so the reputation is not great and certainly politicians and regulators who say they value the financial services industry in the uk clearly need to get a grip and they will be looking for leadership here and that's one thing when it comes to london and its reputation, there is a bit of a lack of leadership in terms of restoring its reputation. >> how much worse might it get because barcl

these are your headlines for wednesday june twenty seventh two thousand and twelve barclays will reportedly pay four hundred fifty million dollars to settle with u.s. and u.k. authorities over accusations the bank attempted to manipulate key interest rates to benefit the banks to rivet is ratings positions now this is the first settlement but there is still a global investigation going on involving many of the world's biggest banks so are you sick of this do you want to put your money in a bank that simply uses your deposits to make loans to finance the economy not to finance speculation or gambling or allow manipulation well we'll talk to c.e.o. of ego bank ron paul about community banks as an alternative but on that note is the traditional business model of small banks being destroyed by service and looking at what's going on in central bank land what would be the impact of nerve i'm talking about a negative interest rate policy the e.c.b. is reportedly contemplating at mario draghi is thinking of reducing the bank deposit rate to zero or even lower we'll talk about it plus u.s. cities an

all right you heard me at the top of the show barclays has been ordered to pay hundreds of millions of dollars to settle charges of attempting to manipulate two global benchmark interest rates ok barclays according to reuters has admitted to trying to make lie bore look artificially low to avoid signaling the bank's distress to markets during the financial crisis this went on from two thousand and five to two thousand and nine according to the c f t c one of the regulators barclays traders and employees also attempted to manipulate the interest rates and make false reports concerning them to benefit the bank's derivatives trading positions to maximize profits and minimize losses this conduct occurred regularly and was perv a sieve and they included barclays traders asking the other banks to assist in the manipulation or helping other banks and their attempts to manipulate these interest rates now just so you know if you don't live where underpins trillions of dollars in derivative contracts and is a crucial peg for corporate and personal borrowing so it affects everyone or a lot of peo

barclays bank pays a record settlement and google enters the tablet war. barclays bank and ashley morrison is here with more. >> reporter: good morning to you. european finance leaders meet today to discuss the debt crisis. investors want to see if the european central bank will initiate a third round of cheap long-term loans to stabilize the financial markets. overseas good economic data sent most stocks higher. the nikkei added 1.5% and hong kong's hang seng lost 0.5%. >>> investors on wall street will keep an eye on medical and insurance companies who may be affected by today's health care ruling. on tuesday, the dow gained 92 points. the nasdaq was up 21. >>> british bank barclays is is paying more than $453 million to settle charges it tried to manipulate interest rates. the commission says barclays tried to influence an interest rate that affects how much consumers and businesses have to pay for their loans. the justice department is continuing a criminal investigation of the bank. >>> california has passed a controversial state budget that will clos

>> i'm a senior adviser to barclays capital. >> all right. the guardian newspaper in britain reported in 2010 that u.s. bankruptcy examiner concluded that grounds exist for legal claims against top lehman brothers bosses and auditor ernst & young for signing off misleading accounting statements in the run-up to the 2008 collapse. the newspaper said a 2,002 page forensic report which i'm sure you're familiar with by antoine valucas -- >> does the gentlelady have a question about the subject at hand? >> -- revealed that barclays got certain equipment and assets to which it was not entitled. are you aware of any of these allegations and do you have a response to them? >> no, i'm not. >> the lucas report revealed that during lehman's final hours its chief executive officer, dick fold, sought to convince prime minister gordon brown to overrule britain's financial services authority when it refused to fast track -- >> does the gentlelady imply this segment had anything to do with that? >> mr. chairman, if you could allow me to finish here. accordin

the implications of barclays happy to have this investigation over. it raises the question for banks, some banks come out and admitted they're under investigation including citigroup, ubs, deutsch bank and others. >> all the big banks? >> i wouldn't necessarily say all of them but certainly some of them. >> all right. what are the implications going down the road in terms of liability if we do get class action lawsuits that actually take hold and what do you make of the fine that barclays has agreed to pay? seems sizable to me. >> big number. no question about that. how creative the class action lawyers get, nobody knows. it may be hard to peg wit a loss but the banks have to settle something. you would assume. this looks terrible. it's dragged out in the press and already admitted, bob dimon admitted bad things happened in my bank. they're admitting here and this gives ammunition to the class action lawyer lawyers. >> does it give ammunition to the regulators? now that the jp morgan trading loss is out there. we saw jamie dimon on the hill. does that

barclays bank and ashley morrison is here with more. >> reporter: good morning to you. european finance leaders meet today to discuss the debt crisis. they want to see if they will initiate a thounird round of long-term loans. the nikkei added 1.5% and hong kong's hang seng lost 0.5%. >>> who may be affected by today's health care ruling. on tuesday, the dow gained 92 points. the nasdaq was up 21. >>> british bank barclays is paying more than 350 million dollars to settle charges it tried to manipulate interest rates. the commission says barclays tried to flungs an interest rate that affects how much consumers and businesses have to pay for their loans. the justice department is continuing a criminal investigation of the bank. >>> california has passed a controversial state budget that will close a deficit of more than $15 billion. the plans call for cuts to welfare and social service programs and depends on voters approval more than $8 billion in temporary tax increases. if voters reject the plan a series of automatic cuts go into effect including cutting the public sc

now you have got the barclays issue.f we don't have faith in the financial companies, why should our viewers have faith in the financial markets? >> well, financials are critical. that're a huge part of the market. we can't survive without them, of course. there are always issues. there have been for quite a while. should they invest directly in the financial segment in maybe, maybe not. overall it's a big piece of the market and investors need to putt the money somewhere. they have a good long-term track record. i don't know if that's enough to keep people out entirely. >> bottom line, one sector or stock to buy right now? very quick please. >> i will say that we are -- our sector ratings at schwab in a defensive mode and the reason we're there is in a summer slowdown similar to last year and the year before and probably in for a couple of months for high volatility and big up and down days and seen that this week. i would expect it for several weeks. may not get out of this funk if you will until maybe august or so. no

drudge bank, barclays, goldman sachs are among the -- deutsche bank, barclays, goldman sachs are among the institutions that saw there ratings/. >> especially ratings in europe. of course, we have all the football still to come for you. it is germany against greece denied. the score at the moment is -- >> 0-0. there are a number of different sayings popping up. >> it is more fun to talk about the football. there are good chances for the german team. they have missed there chances. we will see what happens, of course. stay with us. >> you can also check this out on twitter. keep it here. >> stay with us. >> the trial of anders breivik has ended in norway with the defense trying to prove that his killing of 77 people last year is not an act of insanity. >> breivik wants to be ruled st.. >> victims'will to defiantly left the -- victims' relatives defiantly let the court room. breivik admitted it was a terrible act, but said it was necessary to protect against growing is,ization. >> we don't care at all for him. we want him put away for the rest of his life. >> breivik's attorney spoke for

the cftc to set al libel related probably with barclays.t this but we'll be told at 8:30. we're told about a london involvement also involving the u.s. department of justice. sources saying this settlement to total in the hundreds of million dollar -- obviously the libel rate was a key one in bankers were manipulating it for their own profit. that is the question at the heart of this investigation. we'll get more information just about four minutes ago. we're told to expect an announcement of a settlement of hundreds of millions of dollars. >> also when we come back, breaking economic news. that's when squawk comes right back. [ male announcer ] research suggests the health of our cells plays a key role throughout our entire lives. ♪ one a day men's 50+ is a complete multi-vitamin designed for men's health concerns as we age. ♪ it has more of seven antioxidants to support cell health. that's one a day men's 50+ healthy advantage. to support cell health. recently, students from 31 countries took part in a science test. the top academic perfo

that and more. >>> start with the news on barclays.ations that it tried to manipulate the libor rate, a key international interest rate benchmark on which so many others have to trade. ee eamon javers. >> what they are accused of is just what you say conspiring to manipulate libor overnight interest rate. the question here left based on what we know as of now, exactly what was involved here. they hint in documents, federal officials do, that there were other banks involved, senior management involved at barclays and cftc's bart chilton on our air earlier today. he explained just how significant this was for the global economy. >> these libor rates impact the credit rates, interest rates that people pay for everything, individuals and businesses. whether or not it's mortgages or credit cards or car loans or even students loans. so it's hugely important. >> chilton explained exactly what they found, which were documents relating to the way barclay's reported what their borrowing costs were to government and other employees. take a listen

it's just another way you'll be traveling at the speed of hertz. . >>> barclays . >>> barclays getting hit with a $450 million fine by u.s. and uk regulators. they made a profit from trading positions. the three top executives passing up bonuses as a result. other things being investigating include other banks. >> etc. explain why the london interbank offer rate is important. it sets some mortgage rates for people. this is a average rate set by banks each morning and it measures how much they will charge each other for loans. that affects interest rates on everything from home loans to auto loans and student debt. it's a wench market rate that other pay play off of. so are they another example of a bank behaving badly? joining us now, two gentleman, good to see you, are bank behaving badly? >> no, it's the same thing day after day and year after year. >> is there solution? >> i think it would be prison sentences and criminal indictments. that tends to be the only thing that gets wall street executives attention. you're asking the fox to guard the hen house and we know what they always

the regulators say barclays manipulated the london interbank offered rate or libor. they made false reports on short-term interest rates from 2005 through 2009. the regulators say traders at barclays sought to benefit their positions by asking colleagues to fix the rate reports. bank officials admitted to the wrongdoing and said four top executives will give up their yearly bonuses. this innocent the first time libor has been under scrutiny. in february, swiss authorities began investigating a number of foreign banks for possibly manipulating the international benchmark. >>> european leaders opened a two-day summit in brussels, belgium. they will discuss the way to bail out debt-riddens members and other issues such as growth plans and fiscal integration. the eu recognizes that economic recovery across the region has been dampened by austerity measures and nations with excessive debts. as part of the region's growth measures, theedle eleaders will consider recapitalizing the investment bank. they'll also agree on a stimulus package to spur private sector investment i

barclay's capital, $453 million in fines to regulators after admitting that traders and executives tried to manipulate interest rates tied to loans and financial contracts around the world during the financial crisis, in response to the admission barclay's ceo and top executives are going to forego their bonuses. it pledged to cooperate with investigations into individuals and rival firms. we could see more. the futures point to a lower start but the main event today is going to be the supreme court decision on president obama's health care overhaul that's expected mid morning. there also is that summit that has invest gers wondering what is going to happen in europe. european markets have been in the red for most of the day so far, wednesday was the best day for the dow and the s&p here in the u.s. in a week, the dow closing 92 points to 12,627 t s&p up 11 to 1331 and the nasdaq racking up 21 points to 2875. that supreme court ruling is like the super bowl cutting across politics, legal issues and business as well. we'll be all over it live at 10:00 so make sure to watch us as well. >>

economist at barclays capital. >>> after the federal reserve decided to extend the so-called operation twist, but not implement qe-3, the dow jones industrial average ended lower. it fell 0.1% on the day to 12,824. now, to see how things are treating here in japan, we'll go to meleguard at the stock exchange. some hopes for the august meeting. >> yes, indeed. and as you said there, the fed possibly holding back on its main policy measures, until that august meeting. but the -- as you mentioned there, it did extend its policy, or one of its measures of selling short-term securities to buy longer ones, often known as operation twist as edefined there. but it didn't really take any extra aggressive easing measures on the whole. and that disappointed markets somewhat. so let's look how the nikkei is popping off this thursday morning here in japan. and both indexes trading higher. 8,805 for the nikkei, 752 for the topix. the moves were a little bit light as market players were waiting for the fed meeting. but now that's out of the way, the next focus is really on how eu leaders are going to

barclays found itself find almost three hundred million pounds for run and raid fixing in athens the bank manipulated figures that relied on by the world's banking system in a bid to boost its own profits and that's something max and stay sane the kinds report on our way about that full program coming your way next hour but here's a preview. so now you have bob diamond over barclays committing criminal fraud on his own balance sheet committing criminal fraud in a live or market when there's plunder at the top and you systematically legitimize plunder as the main source of economic activity as david cameron has done in the u.k. he's told european regulators look in the u.k. criminal plunder is the basis of our economy you can't put our bankers in jail because all we'd be left with are a bunch of marmite pots and some a limp dick has ben's so and it filters down to the rest of society but why i put other people in jail i mean i don't understand why put anyone in jail in in the u.k. there's no state of the law there's absolutely no still avoid to do any criminal action in what u.k. if y

it wasn't the people running barclay's. it was the hapless owners who bore the cost.hat's a horrendous percentage sell-off. the unusually steep punishments reflected the serious and widespread nature of the manipulation. huh? what the heck is steep about this punishment? isn't punishment supposed to be meted out to the wrongdoers? why are the shareholders penalized? what did they do? there were people involved in the price fixing. the fact they aren't paying the fine promotes lawlessness. we put mafia people in jail for years for fixing prices. we've indicted people for running numbers books, casinos. we put people in jail for fixing the price of electrical equipment, for cardboard boxes. i'm not kidding. these traders get to laugh all the way to the bank. i'm not even hearing about clawbacks of bonuses. they may have been enlarged by manipulating the most important contract.. how about the voice at the top? the chief executive and three other top executives agreed to give up bonuses like they deserve it after that stock performance. i feel their pain. that's go forwa

could come for barclays, of what the future is for mr.candal is one that is should be front and center for many investors, particularly for these european banks. >> and from the bank of england, saying exactly what -- >> the comments led me to believe that he wanted to revamp the way libor is actually computed. >> computed. >> exactly. >> too big to rig, as jim said here yesterday. >> you'd think so with $350 trillion worth of debt linked to it. >> right. >> that it would simply be impossible to actually move it one way or the other. >> yeah. amazing. >> apparently not the kaits case. and those e-mails, they get them every time. >> yes. >>> homebuilders are another area we're watching. pretty good data points this week followed up by earnings this morning out of kb home. growth was small at 3%. when you compare that with lennar, their growth was 40%. in comparison, not good. but overall, the earnings were better than expected. keep in mind, too, that this is a very heavily shorted stock. this is one of the most shorted stocks, in fact, in

bank three barclays boss is also in the dog and you're up to date more stories are on the website of the dot com slash big story blowing up there and it ok thanks to you know you're just a few minutes away from the lace additional julian assange just talk show here on r.t. itself a wrap of our top stories is me kevin o. and next. i. and over the speed. if you. hurry and. i wish. things i missed some good. luck. just seeing them on an animal. or a little mountain climbing a little. fifth. with the end of the war and the going away of the soviet union many people thought that nuclear weapons disappeared. the risk is not zero that something might be going off by mistake especially a lot of nuclear weapons on hair trigger alert. puppets of the victims to use it as a threat all as an extra bit but you know if you keep spending a trillion dollars a year on weapons of eventually you're going to blow everybody up you you know people are dying from these weapons but until we actually see it people don't wake up to get nuclear weapons or a bill. that represents all of the firepower of the seco