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☆ 3 money moves to make ahead of the Federal Reserve's first rate cut in years
▼ + stars: | 2024-07-15 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

For now, top-yielding online savings accounts and one-year CDs are paying more than 5% — well above the rate of inflation. "Money market brokerage accounts usually pay higher rates than money market or savings accounts at banks," he said in an emailed statement. "Timing your purchase to coincide with lower rates can save money over the life of the loan," Tayne said. However, lower mortgage rates could also boost home-buying demand, which would push prices higher, McBride said. "If lower mortgage rates lead to a surge in prices, that's going to offset the affordability benefit for would-be buyers."

Persons: cardholders, APRs, Tayne, Olga Rolenko, McBride, Mark Kantrowitz, Kantrowitz, Howard Hook, they've Organizations: Treasury, EKS, EKS Associates Locations: Princeton , New Jersey

LONDON (AP) — A British financial trader, who has been described as the ringleader in the manipulation of a key interest rate before and after the global financial crisis, lost his appeal Wednesday to have his conviction quashed. At a three-day hearing in London earlier this month, the men’s lawyers argued that their convictions were “unsafe” and should be quashed. An appeal to the Supreme Court has to be made within 14 days. The scandal emerged in 2012 when some banks were accused of submitting fake numbers on purpose to have the LIBOR set at a rate that better suited them. LIBOR has been phased out in recent years, partly because it was seen by many as worsening the 2008 financial crisis.

Persons: —, Tom Hayes, Hayes, Carlo Palombo, Palombo, dishonestly, “, LIBOR Organizations: Citigroup, Switzerland's UBS, London Inter, Barclays, Deutsche Bank, of Justice, Supreme, U.S Locations: British, U.S, London, France, Germany

☆ UK Libor trader Hayes loses appeal against rate-rigging conviction
▼ + stars: | 2024-03-27 | by ( ) www.cnbc.com time to read: +1 min

Thomas Hayes, a former trader at banks including UBS Group AG and Citigroup, on Aug 3, 2015. Tom Hayes, the first trader jailed worldwide for interest rate rigging, lost his appeal against his conviction in a London court on Wednesday. Hayes, a former star Citigroup and UBS trader, was convicted in 2015 of conspiracy to defraud by manipulating Libor, a benchmark rate once used to price trillions of financial products globally. His appeal against his conviction was heard alongside that of Carlo Palombo, a former Barclays trader convicted in 2019 of skewing Libor's euro equivalent, Euribor. Hayes and Palombo were given 14 days to apply for permission to appeal to the Supreme Court.

Persons: Thomas Hayes, Tom Hayes, Hayes, Libor, Carlo Palombo, Palombo's, David Bean, Palombo Organizations: UBS Group AG, Citigroup, UBS, Prosecutors, London, Barclays, Deutsche Bank, Supreme Locations: London, U.S

☆ US bond investors brace for Fed rate cuts in 2024
▼ + stars: | 2023-11-30 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +5 min

Traders' confidence was reinforced earlier this week when Fed Governor Christopher Waller, a hawkish policymaker, flagged a possible rate cut in the months ahead. SOFR FUTURESBond investors also look to the Secured Overnight Financing Rate (SOFR) futures to gauge expectations of Fed rate moves. The June 2024 SOFR futures have priced at least one Fed cut, while the probability of two 25-basis-point rate reductions was at 76%. An OIS transaction involves exchanging an overnight rate such as the federal funds rate for a fixed one. For instance, in a U.S. two-year OIS transaction, one party receives a fixed two-year rate in exchange for paying the fed funds rate daily over the next two years.

Persons: Brendan McDermid, Robert Pavlik, Pavlik, Christopher Waller, Jerome Powell's, It's, Gertrude Chavez, Dreyfuss, Saqib Iqbal Ahmed, Stephen Culp, Alden Bentley, Paul Simao Organizations: Wall, REUTERS, Bond, U.S, Dakota Wealth Management, Fed, Spelman College, Reuters, Thomson Locations: New York, U.S, Fairfield , Connecticut, Atlanta

☆ High cost of capital a bane for energy transition ahead of COP28
▼ + stars: | 2023-11-28 | by ( Divya Chowdhury | ) www.reuters.com time to read: +2 min

REUTERS/Rula Rouhana Acquire Licensing RightsMUMBAI, Nov 28 (Reuters) - Advocates for the energy transition are concerned ahead of the COP28 summit in Dubai about the high cost of capital available to make change happen, as policymakers ratchet up their rhetoric on the need for tight monetary policy. COP28 is widely expected to focus on climate finance, specifically to build on the G20 nations' commitment to triple renewables deployment to about 11,000 gigawatts by 2030, which will need funds of around $4.5 trillion. Climate finance is going to be the "Achilles' heel" of COP28, said Vaibhav Chaturvedi, fellow at the Council on Energy, Environment and Water (CEEW). Linda-Eling Lee, head of the MSCI Sustainability Institute, said companies and investors cannot be expected to commit long-term capital to the energy transition if policymakers change track suddenly. Agreements on greater transparency in disclosures, along with innovations in finance, will help mobilise more private sector funds, Lee said.

Persons: Rula, Gauri Singh, IRENA, Vaibhav Chaturvedi, Chaturvedi, Linda, Eling Lee, Lee, Divya Chowdhury, Jan Harvey Organizations: Abu Dhabi Sustainability, REUTERS, Rights, International Renewable Energy Agency, Reuters Global Markets, Council, Energy, Bridgetown Initiative, World Bank, Bank, MSCI Sustainability Institute, Finance, Thomson Locations: UAE, Abu Dhabi, Rights MUMBAI, Dubai, Barbados, Bridgetown, Mumbai

☆ Amplify rolls out first SOFR-based ETF for income seekers
▼ + stars: | 2023-11-15 | by ( Suzanne Mcgee | ) www.reuters.com time to read: +2 min

The Amplify Samsung SOFR ETF , which debuted Wednesday, is the first ETF to track SOFR, the overnight interbank lending rate that has emerged as the U.S. replacement for the now-defunct Libor gauge of overnight borrowing interest costs. The new fund's launch comes amidst a wave of enthusiasm for ultra-short term fixed income ETFs, as yields on products throughout the fixed income spectrum have risen to multi-year highs following an aggressive rate hiking cycle by the Federal Reserve. "It wasn't until this year that rate-driven products became priorities," said Bill Belden, president of Amplify. Flows into money market and ultra-short term products account for about 36% of all inflows into fixed income ETFs this year, though the category represents only 15% of all fixed income ETF assets, according to Matthew Bartolini, head of product research at State Street Global's SPDR Americas ETF division. Belden said that a large institutional investor has provided seed capital of $50 million for the new ETF.

Persons: Yves Herman, Bill Belden, Matthew Bartolini, SOFR, Belden, Suzanne McGee, Ira Iosebashvili, Cynthia Osterman Organizations: Samsung, REUTERS, ETF, Federal Reserve, Thomson Locations: Brussels, Diegem, Belgium, U.S, Americas

☆ Exonerated Deutsche Bank trader can pursue $150 mln lawsuit -US judge
▼ + stars: | 2023-10-31 | by ( Jonathan Stempel | Companies Need To Integrate Climate Reporting Across Functions To Comply With California S New Law | Henry Engler | ) www.reuters.com time to read: +2 min

Companies Deutsche Bank AG FollowNEW YORK, Oct 31 (Reuters) - A former Deutsche Bank trader whose conviction in New York for rigging a key interest rate benchmark was overturned can pursue a $150 million lawsuit accusing the German lender of malicious prosecution for making him a scapegoat. Deutsche Bank has until Nov. 14 to formally address claims in Connolly's lawsuit. Libor probes led to about $9 billion of fines worldwide for banks, including $2.5 billion for Deutsche Bank in 2015. Black is also suing Deutsche Bank for malicious prosecution, seeking $30 million in a lawsuit filed in a New York state court in Manhattan. Black's case is Black v Deutsche Bank AG et al, New York State Supreme Court, New York County, No.

Persons: Jesse Furman, Matthew Connolly's, Connolly, Gavin Black, London interbank, Jonathan Stempel, Jonathan Oatis Organizations: Deutsche Bank, Deutsche, London, Deutsche Bank AG, Court, Southern District of, New York, Thomson Locations: New York, U.S, Manhattan, Connolly's, London, Southern District, Southern District of New York, New, Court , New York County

Trillions of euros of financial products, from mortgages to car loans, remain pegged to the Euro Interbank Offered Rate as Euribor is officially known. The move to revamp Euribor aims to reduce the burden on institutions that do provide input by using a standardised approach. Having the broadest possible geographical spread of banks in Euribor's panel is seen as the best way to have a full picture of euro-denominated lending costs. Schirmann highlighted that countries with active bank-to-bank lending markets such as Finland, Ireland and Greece currently had no banks on Euribor's panel. Cutting the need for banks to provide bespoke so called "Level 3" estimates should also "significantly diminish" the time and costs involved for banks.

Persons: Dado Ruvic, Libor, Jean, Louis Schirmann, Schirmann, EMMI, Marc Jones, Mark Potter Organizations: REUTERS, Federal Reserve, European Central Bank, Bank of England, Money Markets, Reuters, Deutsche Bank, Thomson Locations: Euribor's Brussels, Euribor's, Finland, Ireland, Greece

☆ The Federal Reserve leaves rates unchanged. Here's how it impacts your money
▼ + stars: | 2023-09-20 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

As the federal funds rate rose, the prime rate did as well, and credit card rates followed suit. The average rates for a 30-year, fixed-rate mortgage "remain anchored north of 7%," said Sam Khater, Freddie Mac's chief economist. Already, the average rate for a HELOC is up to 9.12%, the highest in 22 years, according to Bankrate. Student loansFederal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves. But undergraduate students who take out new direct federal student loans are now paying 5.50% — up from 4.99% in the 2022-23 academic year and 3.73% in 2021-22.

Persons: that's, Matt Schulz, Sam Khater, Freddie Mac's, Greg McBride Organizations: Treasury, Bankrate.com, LendingTree

☆ The Federal Reserve may not hike interest rates this week. What that means for you
▼ + stars: | 2023-09-18 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Artistgndphotography | E+ | Getty ImagesThe Federal Reserve is likely to skip an interest rate hike when it meets this week, experts predict. The central bank has already raised interest rates 11 times since last year — the fastest pace of tightening since the early 1980s. The average rates for a 30-year, fixed-rate mortgage "remain anchored north of 7%," said Sam Khater, Freddie Mac's chief economist. Auto loan rates top 7%Even though auto loans are fixed, payments are getting bigger because the price for all cars is rising along with the interest rates on new loans. Federal student loans are now at 5.5%Federal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves.

Persons: Greg McBride, that's, Sam Khater, Freddie Mac's, McBride Organizations: Finance, Money, Homeowners, U.S, Treasury, Auto Locations: LendingTree, Federal

☆ Another interest rate hike is likely coming from the Federal Reserve: Here are 5 ways it could affect you
▼ + stars: | 2023-07-21 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

"Rising interest rates can sometimes feel like a double-edged sword," said Kelly LaVigne, vice president of consumer insights at Allianz Life. As the federal funds rate rises, the prime rate does, as well, and credit card rates follow suit. The average credit card rate is now more than 20% — an all-time high, while balances are higher and nearly half of credit card holders carry credit card debt from month to month, according to a Bankrate report. Student loans Federal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves. For now, anyone with existing federal education debt will benefit from rates at 0% until student loan payments restart in October.

Persons: Stefani Reynolds, they've, Kelly LaVigne, Brett House, WalletHub, Freddie Mac, Edmunds, Ivan Drury Organizations: Eccles Federal Reserve, Bloomberg, Getty, Reserve, Fed, WalletHub, Allianz Life, Columbia Business School, Treasury, Istock Locations: Washington, Edmunds

☆ Curb use of dollar Libor alternatives to Fed rate, says watchdog
▼ + stars: | 2023-07-03 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, July 3 (Reuters) - The use of four dollar-denominated alternatives to the now scrapped Libor interest rate need restrictions to avoid threatening financial stability, a global securities watchdog said on Monday. The final dollar-denominated London Interbank Offered Rate or Libor was published last Friday. Several so-called credit sensitive rates (CSRs) and term SOFR rates are being offered as alternatives to SOFR, which has no forward 'terms' or credit component, though volume in them has been low. SOFR term rates also fell short of IOSCO standards given they rely on the continued existence of a deep and liquid derivatives market, IOSCO said. "Administrators should consider licensing restrictions for use of CSRs and Term SOFR rates within certain products or by certain user groups," IOSCO said.

Persons: Libor, IOSCO, Huw Jones, Conor Humphries Organizations: U.S . Securities, Exchange Commission, London, Federal Reserve, Regulators, Thomson

While there has been some scrambling to amend contracts linked to Libor over the past month, the transition was well telegraphed and no major issues are expected, loan and derivatives market participants and lawyers said in interviews. "I feel like it has been two to three years now that we have been re-papering all the legacy loans and legacy securities we purchased tied to Libor," said Scott DiMaggio, co-head of fixed income, at Alliance Bernstein. Friday at 11:55 a.m. British Summer Time (1055 GMT) marked the last publication for the 1-month, 3-month and 6-month U.S.-dollar Libor interest rates. Other U.S. dollar tenors were largely phased out for new contracts at the end of 2021 along with Libor rates linked to other currencies. Derivatives markets based on Libor had already mostly moved to new benchmarks without major disruption, while some corners of the loan markets, such as syndicated loans, have been busy with contract amendments, market participants said.

Persons: Scott DiMaggio, Alliance Bernstein, Shah, Federal Reserve Bank of New York's, Libor, Tal Reback, Gennadiy Goldberg, John McCrank, Gertrude Chavez, Dreyfus, Alden Bentley, Stephen Coates Organizations: YORK, Alliance, Regulators, Federal Reserve Bank of New, U.S, Britain's, Authority, Libor, TD Securities, Thomson Locations: London, Iran, U.S, New York

☆ The End of LIBOR Is (Finally) Here
▼ + stars: | 2023-06-30 | by ( Joe Rennison | ) www.nytimes.com time to read: +2 min

The arduous, decade-long process to end the financial system’s reliance on a tarnished interest-rate benchmark, which once underpinned trillions of dollars in contracts across the globe, is almost over. From next week, the rate, known as the London Interbank Offered Rate, or LIBOR for short, will cease to be published. LIBOR is a collective term for dozens of rates, denominated in different currencies, intended to reflect how much it costs banks to borrow from one another. In the end, roughly $10 billion in fines were meted out across the financial industry over accusations of LIBOR rigging, which led to efforts to move away from the tainted benchmark. “There are still issues, but it’s remarkable that LIBOR will go out with more of a whimper than a bang.

Persons: LIBOR, ”, Mark Cabana Organizations: London, Barclays, Bank of America Locations: LIBOR, British

watch nowWhat the federal funds rate means for youWage growth hasn't been able to keep pace with higher prices for many Americans. Sarah Silbiger | ReutersThe federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. Here's a breakdown of how that affects consumers:Credit cardsSince most credit cards have a variable rate, there's a direct connection to the Fed's benchmark. As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit. Today's credit card rates are likely as high as they've been in decades.

Persons: Philipson, Sarah Silbiger, that's, Matt Schulz, they're, Freddie Mac, Sam Khater, Freddie Mac's Organizations: Eccles Federal Reserve, Washington , D.C, Reuters, LendingTree, Treasury, Istock, Getty, U.S . Department of Education Locations: Washington ,

☆ The Federal Reserve may pause its interest rate hiking campaign. What that means for you
▼ + stars: | 2023-06-09 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

damircudic | E+ | Getty ImagesCredit card rates top 20%The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. For starters, most credit cards come with a variable rate, which has a direct connection to the Fed's benchmark rate. As the federal funds rate rose, the prime rate did, as well, and these rates followed suit. Federal student loans are set to rise to 5.5%Federal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves. But as of July, undergraduate students who take out new direct federal student loans will see interest rates rise to 5.50% — up from 4.99% in the 2022-23 academic year and 3.73% in 2021-22.

Persons: that's, Bankrate, McBride Organizations: Getty, U.S, Treasury, Auto, U.S . Department of Education

☆ Libor’s Last Users Face Challenges as the Deadline for Its Demise Nears
▼ + stars: | 2023-06-01 | by ( Mark Maurer | ) www.wsj.com time to read: 1 min

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Persons: Dow Jones

☆ UK regulator makes 'final call' to switch off Libor
▼ + stars: | 2023-05-31 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

The London Interbank Offered Rate (Libor) reflected the cost of lending between banks, using quotes from panels of banks in 35 variants across five currencies. "This is the last remaining Libor panel and its end marks another critical milestone in the transition away from LIBOR," the FCA said in its "final messages" on the rate. "Firms must continue to actively transition contracts that reference Libor to appropriate, robust reference rates, and we continue to expect firms to deliver demonstrable progress," the FCA said. Market participants were given permission to continue using dollar Libor in new contracts on a limited basis, but the FCA said on Wednesday this would end on July 1. The 1, 3 and 6-month dollar Libor rates only will be published in a "synthetic form" for legacy contracts from July 3 to end-September 2024.

Persons: DTCC, Huw Jones, Mark Potter Organizations: Authority, Federal Reserve, Thomson Locations: LIBOR

☆ Analysis: As sun sets on LIBOR, its successor rate may heighten bank risks
▼ + stars: | 2023-05-22 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +5 min

The transition to the Secured Overnight Funding Rate (SOFR) has been well-telegraphed for years and U.S. banks are mostly prepared for the new rate regime. Typically in a crisis, the cost of bank funding rises: rates on commercial paper and bond issuance increase as investors demand a premium to buy bank debt. This was highlighted by the New York Fed in a study released in December 2022 and updated last February. Bank funding costs have increased with the surge in interest rates since the Fed began tightening last year. "The transition has largely taken place and the rates on SOFR have risen in tandem with policy rate increases."

☆ The SEC just paid out nearly $279 million to a tipster in its largest-ever award. Here's an inside look at the crazy world of whistleblower lawsuits.
▼ + stars: | 2023-05-08 | by ( Samantha Stokes | ) www.businessinsider.com time to read: +11 min

The regulator announced a nearly $279 million award to a whistleblower on May 5, more than double the previous record of $114 million awarded in October 2020. When whistleblower information leads to settlements, tipsters can earn between 10 and 30 percent of the financial penalties paid by wrongdoers. When whistleblower information leads to settlements, the tipsters can earn a percentage of the financial penalties paid by wrongdoers. The tipster's law firm, Kirby McInerney, worked with state authorities on the investigation after "Tooley's" lawsuit was filed. This means tax-fraud whistleblowers will increasingly look for ways to bring their tips to New York law enforcement to be more involved in the investigation process.

☆ Here's how the Federal Reserve's latest quarter-point interest rate hike impacts your money
▼ + stars: | 2023-05-03 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

The Federal Reserve Bank building Kevin Lamarque | ReutersWhat the federal funds rate means to youThe federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. On the flip side, higher interest rates also mean savers will earn more money on their deposits. As the federal funds rate rises, the prime rate does, as well, and your credit card rate follows suit within one or two billing cycles. With this rate increase, consumers with credit card debt will spend an additional $1.7 billion on interest, according to an analysis by WalletHub. Interest rates for the upcoming school year will be based on an auction of 10-year Treasury notes later this month.

☆ The Federal Reserve is expected to hike rates one more time. What that means for you
▼ + stars: | 2023-05-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

"Yet another rate hike from the Fed means today's sky-high credit card interest rates will rise even further in the very near future," said Matt Schulz, chief credit analyst at LendingTree. Cardholders should expect their current cards' interest rates to rise in the next billing cycle or two, he said. Auto loan rates rose to more than 6.5%Even though auto loans are fixed, payments are getting bigger because the price for all cars is rising along with the interest rates on new loans. Federal student loans are already near 5%Wavebreakmedia | Istock | Getty ImagesFederal student loan rates are also fixed, so most borrowers aren't immediately affected by rate hikes. Interest rates for the upcoming school year will be based on an auction of 10-Year Treasury notes later this month.

[1/3] Dominion lawyers embrace after Dominion Voting Systems and Fox settled the defamation lawsuit over Fox's coverage of debunked election-rigging claims, in Wilmington, Delaware, U.S., April 18, 2023. At least 31 lawyers from nine different law firms worked on the case, court filings show. It was not immediately clear how large a share of the settlement the firm would receive in legal fees. The filings do not include recent costs associated with preparing for trial or the success fees lawyers could earn from the settlement. Fox News also hired Paul Clement and Erin Murphy, top appeals court lawyers who have advocated for conservative causes at the U.S. Supreme Court.

NEW YORK, April 14 (Reuters) - Societe Generale SA (SOGN.PA) agreed to pay $105 million to settle U.S. investor litigation accusing the French bank of violating antitrust law by conspiring with rivals to rig Euribor, a key European interest rate benchmark. A preliminary settlement was filed late Friday with the U.S. District Court in Manhattan, and requires a judge's approval. Societe Generale denied wrongdoing in agreeing to settle, court papers show. The case is Sullivan et al v. Barclays Plc et al, U.S. District Court, Southern District of New York, No. Reporting by Jonathan Stempel in New York, Editing by Rosalba O'BrienOur Standards: The Thomson Reuters Trust Principles.

NEW YORK, April 14 (Reuters) - Societe Generale SA (SOGN.PA) agreed to pay $105 million to settle U.S. investor litigation accusing the French bank of violating antitrust law by conspiring with rivals to rig Euribor, a key European interest rate benchmark. A preliminary settlement was filed late Friday with the U.S. District Court in Manhattan, and requires a judge's approval. If approved, the accord would mean investors have obtained $651.5 million of settlements with seven banks. Societe Generale denied wrongdoing in agreeing to settle, court papers show. The case is Sullivan et al v. Barclays Plc et al, U.S. District Court, Southern District of New York, No.

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