Postal Service Plans to End Saturday Delivery
Correction: February 6, 2013
An earlier version of this article misstated the news organization that first reported the Postal Service's plans to end Saturday service. It was CBS News, not The Associated Press.
Boy Scouts Delay Decision on Admitting Gays
Raids in Britain, France and Belgium Focus on Smugglers of People
Boy Scouts Postpone Decision on Gays
Correction: February 6, 2013
An earlier version of this article misstated the color of the uniform worn by Boy Scouts. It is tan, not green.
Obama Chooses REI Executive to Lead Interior Dept.
Those Pictures Really Mozart?
Mozarteum Foundation
Curators determined that this portrait does not depict Mozart.Mozarteum Foundation
An image of Mozart painted about 1783 by Joseph Maria Grassi.Mozarteum Foundation
A portrait by Joseph Lange, Mozart's brother-in-law.Clashes Erupt in Damascus, Shattering Lull, as Prospects for Talks Dim
Two Parties Map Strategy on Automatic Budget Cuts
Gunman Who Wounded Guard at D.C. Lobbyist's Offices Pleads Guilty
Tool Kit: Protecting Your Privacy on the New Facebook
Postal Service to Cut Saturday Mail to Trim Costs
Monopoly Fans Vote to Add Cat, Toss Iron Tokens
As Unit Pleads Guilty, R.B.S. to Pay $612 Million Over Rate Rigging
LONDON
– The Royal Bank of Scotland on Wednesday struck a combined $612
million settlement with American and British authorities over
accusations that it manipulated interest rates, the latest case to
emerge from a broad international investigation.
In an embarrassing blow to the bank, its Japanese subsidiary also pleaded guilty to criminal wrongdoing in its settlement with the Justice Department. The R.B.S. subsidiary, a hub of rate-rigging activity, agreed to a single count of felony wire fraud to settle the case. The settlement reflects the Justice Department's renewed vigor for punishing banks ensnared in the rate manipulation case. In December, a Japanese subsidiary of UBS pleaded guilty to felony wire fraud as part of a larger settlement, representing the first unit of a big bank to agree to criminal charges in more than a decade. As authorities built the R.B.S. case, they seized on a series of incriminating yet colorful e-mails that highlighted an effort to influence the rate-setting process, a plot that spanned multiple currencies and countries from 2006 to 2010. One senior trader expressed disbelief at reaping lucrative profits from the scheme, saying "it's just amazing" how rate "fixing can make you that much money," according to the government's complaint. Another trader, after pressuring a colleague to submit a certain rate, offered a reward of sorts: "I would come over there and make love to you." In a statement on Wednesday, the American regulator leading the case slammed the bank for manipulating benchmarks like the London Interbank Offered Rate, or Libor. The regulator, the Commodity Futures Trading Commission, noted that R.B.S. employees "aided and abetted" other banks in the rate-rigging scheme and continued to run afoul of the law, though more covertly, even after learning of a federal investigation. "The public is deprived of an honest benchmark interest rate when a group of traders sits around a desk for years falsely spinning their bank's Libor submissions, trying to manufacture winning trades. That's what happened at R.B.S.," David Meister, the enforcement director of the commission, said in the statement. Libor ExplainedThe broader rate-rigging case has centered on how much the Royal Bank of Scotland and a dozen other banks, including Citigroup and HSBC, charge each other for loans. Such benchmarks, including Libor, help determine the borrowing costs for trillions of dollars in financial products like corporate loans, mortgages and credit cards. But the Royal Bank of Scotland, like many of its competitors, corrupted the process. Government complaints filed over the last year outlined a scheme in which banks reported false rates to lift trading profits and deflect concerns about their health during the crisis. Authorities filed the first Libor case in June, extracting a $450 million settlement with the British bank Barclays. In December, UBS agreed to a record $1.5 billion settlement with European regulators, the Justice Department and the American regulator that opened the case, the Commodity Futures Trading Commission. The Justice Department's criminal division, which secured the guilty plea from the bank's Japanese unit, also filed criminal charges against two former UBS traders. Some of the world's largest financial institutions remain caught in the cross hairs of the case. Deutsche Bank has set aside an undisclosed amount to cover potential penalties. While foreign banks have received the brunt of the scrutiny to date, an American institution could be among the next to settle. Citigroup and JPMorgan Chase are under investigation. The Royal Bank of Scotland case represents the second-largest fine levied in the multiyear investigation into rate manipulation. The Justice Department imposed a $150 million fine as part of a deferred-prosecution agreement with R.B.S., while the trading commission's financial penalty reached $325 million. The Financial Services Authority, the British regulator, also levied a £87.5 million ($137 million) fine against the firm, one of the largest financial penalties ever from British authorities. R.B.S., based in Edinburgh, had aimed to avert the guilty plea for its Japanese subsidiary. But the Justice Department's criminal division declined to back down, and the bank had little leverage to push back. If it had balked at a plea deal, the Justice Department could have moved to indict the subsidiary. "Like with Barclays and UBS, the settlement with R.B.S. is much more than a slap on the wrist," said Bart Chilton, a commissioner at the trading commission who is a critic of soft fines on big banks. In the wake of the settlement, Royal Bank of Scotland is shaking up its management team as it moves to repair its bruised image. John Hourican, the firm's investment banking chief, resigned on Wednesday, and agreed to forgo some of his past compensation. Royal Bank of Scotland, in which the government holds an 82 percent stake after providing a $73 billion bailout in 2008, also plans to claw back bonuses totaling $471 million to help pay for the rate-rigging penalty. "We condemn the behavior of the individuals who sought to influence some Libor currency settings at our bank from 2006 to 2010. There is no place at R.B.S. for such behavior," Stephen Hester, the bank's chief executive, said in a statement on Wednesday. "Libor manipulation is an extreme example of a selfish and self-serving culture that took hold in parts of the banking industry during the financial boom." |
Ipswich Journal: Paul Mason Is One-Third the Man He Used to Be
Correction: February 6, 2013
The headline on an earlier version of this article misstated Paul Mason's current weight relative to what he weighed nearly a decade ago. He is now about one-third, not two-thirds, the weight he was then.
Tunisian Opposition Leader Killed Amid Tensions, Party Says
Chokri Belaid, Tunisian Opposition Figure, Is Killed
A
leading Tunisian opposition politician who had been critical of the
Islamist-led government was fatally shot outside his home in Tunis
Wednesday, the government news agency said.
Chokri Belaid was shot just as he was leaving his house in the capital city, the state news agency TAP said.
Mr.
Belaid, the general secretary of the Democratic Patriotic Party, was
one of the leaders of the opposition Popular Front, which had been
formed in October to counter the government.
Mr.
Belaid has emerged as a chief critic of Ennahda, the moderate Islamist
party that leads the government in a coalition with two secular parties.
While Ennahda has tried to reassure Tunisians that it would respect
liberal democratic values and not impose a strict Muslim moral code, it
has faced criticism with an indulgent attitude toward the
ultraconservative Islamists known as Salafis.
In
recent days, Mr. Belaid accused the Islamists of carrying out an attack
on a meeting of its members on Saturday. "At the end of our meeting, a
group of Ennahda mercenaries and Salafists attacked our activists," Mr.
Belaid said.
Samir Dilou, a government spokesman, was quoted as calling the killing an "odious crime."
No group immediately took responsibility for the shooting and its cause remained unclear.
It
came as Tunisia faces profound social and religious uncertainties
following the ouster of a dictatorial regime two years ago that set off
what came to be known as the Arab Spring.
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Ally of Ahmadinejad Freed Amid Political Fight, Reports Say
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