LIBOR After the Reversal: A Four Part Webinar Series

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?

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

This session provides the critical background about what the multiple LIBOR rates are, how the major banks set these rates, and why they matter to global financial markets. Dr. Weithers will discuss the following topics:

  • How was LIBOR allegedly manipulated by the banks?
  • How exactly are LIBORs set?
  • What are all of the LIBOR rates?
  • Which major currencies around the globe have LIBOR rates?
  • What types of banking, corporate and consumer transactions are impacted by LIBOR?
  • What countries are impacted by the alleged manipulation?
  • What have the judges said about LIBOR setting and the implications of those rulings for future analyses of LIBOR manipulation?

Fundamental resources defining LIBOR will be provided.

Session 2: How big could the alleged manipulation be? Are there benchmarks to compare to?

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

This session will cover the following topics:

  • What have the recent studies of LIBOR manipulation found?
  • For what dates do the studies agree that LIBOR was manipulated?
  • Is there empirical evidence about how much the alleged manipulation moved LIBOR?
  • Can other benchmarks be used to determine how far LIBORs were moved?
  • How big are the markets influenced by the alleged manipulations?
Session 3: Who could be damaged? What Classes are damaged? Quantifying the effect of the alleged LIBOR manipulation on Banks, Businesses and Consumers.

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.

This session will cover the following topics:

  • Given the alleged activity, who, what and where could the alleged LIBOR manipulation touch?
  • What are the methods of determining the incidence of damage?
  • How might Indirect Purchasers of financial services be impacted?
  • Could the alleged manipulation influence actual LIBORs plus differential, or just listed LIBORs?
  • If only listed LIBOR could be manipulated, which banks, businesses and consumers are affected?
Session 4: Primer on Credit Default Swaps (CDS)

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