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The First Look - Michael Regan, Bloomberg

Dec 20, 2012|

The First Look - Michael Regan, Bloomberg

Transcript - will not be 100% accurate

Well UPS just settled. Litigation and regulatory complaint it cost them one point five billion dollars what did they do and why did they write a check for one and a half billion dollars. Michael Regan from Bloomberg note news joins us today. Mike good morning welcome to show. -- Top business news of the day the settlement would they do that cost them one and a half billion dollars that's a lot of money. Basically they're you know there's rates like -- and in Europe border and there are sort of global benchmark interest rates and -- -- of a variety. Terms of loans or need anything from overnight -- up to a year sure and there's about eighteen banks and brokerages that get together and basically the the aperture. He -- that they submit to the British Bankers' Association. Is what. You know what -- for that day so what I suggested he is basically. Worked very hard. To fix these rates in it and other -- 222. You know interest. Wrongly you can -- the average in order to sit -- -- they're trading curbs is so if that in. One in which space -- you know financial regulator in the UK. Said there you know about 45 employees that you yes -- knew about this you know from traders other witnesses senior management level. And what we're doing is they would you know the leader called the individuals and their bank who. Who submit their rates. To the lot for average where they were all other. I'm pleased that other banks and brokerages and try to convince them. Changed their -- to suit their purposes. -- you're referring to is collusion. And artificial manipulation so UBS could make more profit. Exactly that's exactly rate at or at least. Certain traders and UPS you know it is he you know get it it was isolated -- -- we are pleased about but that's a pretty. Big group you know and yet that states and there's. Up to at least seventy people in various you know electronic chat rooms that that is the -- -- -- you know possibly is that as -- they read the -- How many there -- all the this might. Because it can't be can't have collusion with one bank it takes multiple banks. Right right there are eighteen banks that offer great. The better calculated at least actually like where you -- so far you get and are pleased are the only ones to get find. You know -- investigation is pretty wide ranging across the world you know to get as it was really targeted on a trader at a Tokyo and he. Japanese yen -- So it is clear that there are most likely going to be more shoes to drop from the this reports yet that's at stake today immediate team like you know these employees. At a UPS were. Talking and you know convincing many different brokerages and banks police statistics their -- so it's clear it was a you know it wasn't an isolated. It's single individual like that one banquet was stepped when he equation among many employees that at various it does it didn't name all of these. He banks that we're not involved with this traders and that -- -- -- If you will beat that. Yeah I'm sure that the fact that they're there there will be more trees dropped. We're we're -- the money go only because I hear about these spines you know whether it's a utility company getting find appear in Massachusetts or Morgan Stanley got find five million yesterday. UBS a 1000000005 where does that money physically go you be accessed directly check. Like who gets it does any of this money get back to the consumers who got screwed. Well it there's a debate about that in at least in Britain. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- In this case you know it is it's. It's hard to really make a case that consumers were part directly because a lot of these guys that you know their goal was -- The raids. Artificially low mortgage you know -- these. -- that actually help consumers now. But we -- that you know the other side. You don't -- argued that by keeping this rate are artificially low sort of camouflage the problems but the entire. Banking industry was down throughout the time and that and that -- of exacerbated the problem but. You know it's not a -- but it's not an easy direct -- -- -- to make that tumors are buddies and you know applicant cities you know. There could be a case. He's pleased that the government. Big deal and that it did -- some serious damage to the entire financial industry but it's it's not an easy -- -- a case -- -- of -- is sort of mortgage cases that. It was more it was UBS just the first to kind of roll over and settle -- they'll be bigger. Settlements from other banks. I get to that question you know I think they are they're obviously announcing -- that the settlement to remain and you know it they had. A lot of strong evidence all these electronic chat that our -- on by the banks you know. We're pretty much the smoking gun in this case. So. You know it's very possible there they're working on other elements other banks that will hear about it in coming days so you know it. Artists say this is the biggest. And the worst. It's shirt is on now one point five billion dollars in eagle you know on a battery. No it leaves a mark all right Michael thank you very much for your time. Michael Regan cover in the story UBS settling litigation for one and a half. Billion dollars at the big fight you know we need a big deal out of five million Morgan Stanley wrote to Massachusetts yesterday. One and a half billion dollars -- the winner so far made it dubious distinction some countless tales via. But. I get a couple -- I would count on it and -- now. -- our question of the day news did you or will you received a Christmas bonus this year and how much will be our text number 68680. Password of the day for prize is the world the phrase I guess you'd call it. Black widow will take a look at your text messages when we come back on the financial exchange.