Financial Business Review: Morgan Stanley’s Libor INFO, Barclays INVESTIGATED Anew
It’s two days of share pain for pawn and payday lender Cash America International, Inc. (NYSE:CSH), after posting disappointing second quarter earnings and also canceling a $500 million initial public offering of its online Enova International lending unit. The volatility of the markets was blamed for pulling the IPO, but the firm said that it is “reserved” regarding expectations for the rest of this year.
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Douglas Keenan, who was employed by Morgan Stanley (NYSE:MS) in London in 1991, has told the Financial Times that senior staffers explained to him that, “banks misreported the Libor rates in a way that would generally bring them profits.” It just so happens that Bob Diamond was head of interest-rate trading in London at that time, but Parliament is apparently not interested in hearing Keenan’s testimony on the matter.
Four former and current senior Barclays PLC (NYSE:BCS) employees, including Finance Director Chris Lucas, are being investigated by the United Kingdom’s financial regulator, regarding “sufficiency of disclosure” fees paid when the firm raised an emergency £7.3 billion with Middle Eastern investors in 2008. In addition, the company is reporting its first half earnings, along with the disclosure it’s facing lawsuits over Libor.
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