After four years in the courts, the LIBOR litigation may now be poised to address many market/economic issues of the antitrust claim.

  • How much market power did LIBOR panel banks have?
  • How long could a collusive agreement influence the LIBOR market?
  • Which LIBOR denominated contract holders were damaged?
  • On how many days were plaintiffs hurt or helped?
  • What has four more years of economic research shown about LIBOR  manipulation?

This four part series began with the market microstructure of LIBOR setting and how many collusive banks would be needed to move LIBOR certain magnitudes. Session 2 addressed market models of contracts and how some common features of contract impact who was damaged. Session 3 continued by reviewing the existing research about the effects of LIBOR manipulation, including those that have been performed in the last four years. The final discussion will address Credit Default Swaps and their relevance in evaluating claims of LIBOR manipulation.

Join us to hear more: LIBOR Manipulation and Its Impact On Markets – a four part series:

Session 1: How is it set? How will judges’ definitions impact future analyses?
Presented: January 26, 2017
Instructor: Dr. Timothy Weithers: Former Managing Director, UBS and Executive Director, Chicago Trading Company.
Session 2: How big could the alleged manipulation be? Are there benchmarks to compare to?
Presented: February 9, 2017

Instructors:
Dr. Daniel S. Levy: National Managing Director of Advanced Analytical Consulting Group, Former National and Global Director or Economic and Statistical Consulting at both Deloitte Financial Advisory and Arthur Andersen’s Business Consulting.

Dr. Timothy Weithers: Former Managing Director, UBS and Executive Director, Chicago Trading Company.

Session 3: Who could be damaged? What Classes are damaged? Quantifying the effect of the alleged LIBOR manipulation on Banks, Businesses and Consumers.
Date: February 23, 2017

Instructors:
Dr. Timothy Weithers: Former Managing Director, UBS and Executive Director, Chicago Trading Company.

Dr. Daniel S. Levy: National Managing Director of Advanced Analytical Consulting Group, Former National and Global Director or Economic and Statistical Consulting at both Deloitte Financial Advisory and Arthur Andersen’s Business Consulting.

Session 4: Primer on Credit Default Swaps (CDS)
Date: March 9, 2017

Instructor:
Dr. Timothy Weithers: Former Managing Director, UBS and Executive Director, Chicago Trading Company.

This session will cover the following topics:

  • Why does (and should) research about LIBOR discuss Credit Default Swaps?
  • What are Credit Default Swaps (CDS)? Are they really “swaps”? What is a “credit event”?
  • Who is trading CDS and why? Who are the marketmakers? What are the sources of CDS data?
  • The mechanics of OTC derivatives. A little history: Physical Settlement vs. Cash Settlement
  • How does (and should) LIBOR relate to Credit Default Swaps?
  • CDS pricing and the importance of credit default swap premiums in evaluating claims of LIBOR manipulation

Read More on CDS: Credit Derivatives, Macro Risks, and Systemic Risks

WHEN IT HAS TO BE RIGHT