Barclays Accused, Goldman To Face Claims, Ex-Morgan Stanley Wants Out Of Jail, The Biggest Investment Bank IPO Fo2 Years

Pointing The Finger

All fun and games.

The Telegraph reports that Barclays has become the first bank to face claims in a British court that it manipulated the key interbank borrowing rate.

The bank is accused of fixing Libor to provide borrowing rates it knew to be incorrect, according to papers filed with the High Court by a care home operator.

In the meantime Bloomberg reports that Goldman must face fraud claims brought by ACA Financial Guaranty Corp. over a mortgage-based investment that led to a settlement with the U.S. Securities and Exchange Commission.

ACA Financial sued Goldman Sachs in New York State Supreme Court in January 2011, accusing the company of fraudulent inducement, fraudulent concealment and unjust enrichment in connection with a collateralized debt obligation known as Abacus.

The news organisation also reports that former Morgan Stanley Managing Director Du Jun has appealed a Hong Kong insider trading conviction for which he was sentenced to seven years in prison, saying prosecutors didn’t prove he committed the crime.

'The prosecution failed to prove beyond a reasonable doubt that the defendant knew it was relevant information', said his lawyer John Griffiths.

Finally, Bloomberg reports that Banco BTG Pactual, the Brazilian bank led by billionaire Andre Esteves, is raising as much as $1.95bn) in the biggest initial public offering for an investment bank in two years.

 

image: © Lisamarie Babik

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