He says back then scores of senior bank executives went to jail. William Black was the litigation director for the Federal Home Loan Bank Board during the Savings and Loan debacle in the '80s. And he'd like to see more of this.ĭJINIS: When you have individuals who work at a financial institution that know that they run the risk of being criminally prosecuted, that provides a very powerful disincentive.ĪRNOLD: Other former regulators agree. One of the brokers came to be known as Lord Libor.ĭjinis says there've been very few criminal prosecutions since the financial crisis. In an electronic message the UBS trader said he stood to make $3 million for every 1/100th of a percent that the LIBOR rate rose. In exchange, the brokers allegedly got kickbacks. PETER DJINIS: To me, it's a good sign the federal government is finally treating economic misdeeds as a law enforcement issue.ĪRNOLD: The Justice Department says the three brokers colluded with a trader at the big Swiss bank UBS to manipulate the LIBOR rate to push it up or down in a way that made the trader and UBS a lot of money. Peter Djinis is a lawyer who used to work in a Financial Crimes division of the Treasury Department. And the charges could mean upwards of 30 years in prison. And now, in this latest development, the Justice Department is bringing criminal charges against three former employees of a brokerage firm named ICAP. Since then, more banks and financial firms have been implicated. In other words, trying to make money by corrupting the bedrock of the entire financial system. and British regulators charged Barclays bank for trying to manipulate LIBOR. Just places that use money.ĬOLBERT: I believe emperor penguins on the Ross Ice Shelf are not affected.ĪRNOLD: So, and that's why it was such a big scandal last year - when U.S. STEPHEN COLBERT: Then that LIBOR rate is used to set interest rates everywhere on earth. And that's because trillions of dollars worth of investments change value as the LIBOR rate goes up or down. But that little number has actually been called the biggest number in the world. Yesterday, the three month LIBOR rate was. These charges stem from ongoing investigations into illegal manipulation of the so-called LIBOR rate.ĬHRIS ARNOLD, BYLINE: LIBOR stands for the London InterBank Offered Rate. Justice Department yesterday announced criminal charges against three former brokers with a London-based brokerage firm. We are committed to developing it further within the group.The U.S. We strongly believe that the Louis Capital business will be an excellent cultural fit to TP ICAP. Michael Benhamou and Patrice Cohen, co-CEOs of Louis Capital said: Louis Capital’s strong brand and breadth of equity, equity derivatives and fixed income products complement our existing offering and strengthen TP ICAP’s position in Continental Europe. Nicolas Breteau, CEO of TP ICAP, commented: At 31 December 2018, it had gross assets of $35.4m. Finally, there is potential additional consideration via a profit share dependent upon the performance of the business.įor the year ended 31 December 2018, Louis Capital made profit before tax of $4.3m. There is a further $17 million of deferred contingent consideration that may be payable dependent upon the performance of the business over three to five years.
The initial consideration for the acquisition is $21 million in cash payable at Completion with deferred non-contingent consideration of $6 million that will be paid over two years. The founders Michael Benhamou and Patrice Cohen will remain as senior management.Ĭompletion of the transaction is expected to take place in the first quarter of 2020 and is subject to regulatory approval by the UK FCA, the Financial Industry Regulatory Authority (FINRA) in the U.S. The group specialises in cash equities and equity derivatives, fixed income and small cap advisory services. Louis Capital is primarily based in Europe, operating in London and Paris, but has offices in New York, Hong Kong and Tel Aviv. The company, collectively known as Louis Capital, is a private brokerage group specialising in equities and fixed income.
TP ICAP plc has announced earlier this week the proposed acquisition of Louis Capital Markets and MidCap Partners.
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