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Libor rigging inquiry shut down by Serious Fraud Office

Libor rigging inquiry shut down by Serious Fraud Office

Business
An investigation into the rigging of Libor, the benchmark interest rate that tracks the cost of borrowing cash, has been unexpectedly closed.The decision comes despite evidence that implicates the Bank of England.It means no one will now be prosecuted in the UK for so-called "low-balling", where banks understate interest rates they pay to borrow cash.The Serious Fraud Office (SFO) said its decision followed a detailed review of the evidence.Thirteen traders and money brokers were prosecuted over four years by the SFO in connection with rigging Libor. Six have been prosecuted by the US Department of Justice (DoJ). A further 11 traders have been prosecuting for manipulating Euribor, the eurozone equivalent of Libor. The SFO said aspects of its Euribor inves...
‘Banks can’t recover money lost in fraud from customer’

‘Banks can’t recover money lost in fraud from customer’

Finance
KOCHI: Banks cannot ask a customer to repay money lost through online fraud using its powers under SARFAESI Act as it is a disputed transaction, the high court has held. Banks would have to approach a civil court to recover the money from the persons responsible, the court said. After referring to two rulings by the Supreme Court and a ruling by the high court that banks are liable for unauthorized withdrawals, Justice A Muhamed Mustaque said in the judgment, “Thus, it is clear that the bank cannot claim any amount from the customer when a transaction is shown to be a ‘disputed transaction’. The bank can recover from the customers only when it can unequivocally prove that the customer was responsible for such transaction, independently through the civil court. The RBI guidelines is a clear
Grant Thornton appointed to investigate Rs 4,355-crore PMC Bank fraud

Grant Thornton appointed to investigate Rs 4,355-crore PMC Bank fraud

Finance
MUMBAI: The government has roped in Grant Thornton to carry out forensic investigations into the fraud hit Punjab and Maharashtra Cooperative (PMC) Bank, said four persons with direct knowledge of the matter. PMC appointed the forensic auditor at the behest of the Economic Offences Wing (EOW) of the Mumbai police. Grant Thornton is tasked to look into the allegations made by the former managing director of the bank on how the bank managed to flout Reserve Bank of India (RBI) norms. The firm will also look into the modus operandi of the fraud and whether any employee benefited from that, said one of the persons cited earlier. EOW recently registered a first information report (FIR) on the alleged fund diversion at PMC Bank. The FIR estimated the total fraud amount could be Rs 4,355.46 crore...
RBI initiates prompt corrective action for Lakshmi Vilas Bank after directors probed for alleged fraud

RBI initiates prompt corrective action for Lakshmi Vilas Bank after directors probed for alleged fraud

Finance
The Reserve Bank has initiated Prompt Corrective Action (PCA) against Lakshmi Vilas Bank (LVB) due to high level of bad loans, lack of sufficient capital to manage risks and negative return on assets for two consecutive years, the private sector lender said on Saturday. The RBI move comes amidst the Delhi Police's Economic Offences Wing registering a complaint against the board of LVB alleging cheating and misappropriation of funds. The regulatory action may cast doubts over the proposed merger of Indiabulls Housing Finance with LVB, which is awaiting RBI nod. The Delhi High Court on Friday agreed to hear a petition alleging Indiabulls gave loans worth crores of rupees to shell companies. In a regulatory filing, LVB said RBI has taken the action "on account of high net NPAs, insufficient C...
Google to pay France almost €1bn to settle fraud inquiry

Google to pay France almost €1bn to settle fraud inquiry

Technology
By Wale Azeez, business reporter Google has agreed to pay nearly €1bn in fines and taxes to France as settlement in a fraud inquiry that began four years ago.The tech giant said it will pay a €500m (£446.6m) fine, plus €465m (£415m) in taxes, in a deal that may set a legal precedent for other global technology companies operating within the country. French investigators had been seeking to establish whether the tech giant failed to pay tax due to the state by not declaring parts of its business activities within the country.Google's European headquarters are based in Dublin.Google, part of Alphabet Inc, pays little tax in most European countries because the company reports almost all of its sales in Ireland.