Financial Market Misconduct and Public Enforcement: The Case of Libor Manipulation

Published Online:https://doi.org/10.1287/mnsc.2018.3065

References

  • Abrantes-Metz RM, Kraten M, Metz AD, Seow GS (2012) Libor manipulation? J. Banking and Finance 36(1):136–150.CrossrefGoogle Scholar
  • Acharya V, Steffen S (2015) The greatest carry trade ever? Understanding Eurozone bank risks. J. Financial Econom. 115(2):215–236.CrossrefGoogle Scholar
  • Agarwal V, Daniel ND, Naik NY (2011) Do hedge funds manage their reported returns? Rev. Financial Stud. 24(10):3281–3320.CrossrefGoogle Scholar
  • Armour J, Mayer C, Polo A (2010) Regulatory sanctions and reputational damage in financial markets. Technical Report 8058, Centre for Economic Policy Research, London.Google Scholar
  • Becker GS (1968) Crime and punishment: An economic approach. J. Political Econom. 76(2):169–217.CrossrefGoogle Scholar
  • Ben-David I, Franzoni F, Landier A, Moussawi R (2013) Do hedge funds manipulate stock prices? J. Finance 68(6):2383–2434.CrossrefGoogle Scholar
  • Bergstresser D, Philippon T (2006) CEO incentives and earnings management. J. Financial Econom. 80(3):511–529.CrossrefGoogle Scholar
  • Bhattacharya U, Daouk H (2002) The world price of insider trading. J. Finance 57(1):75–108.CrossrefGoogle Scholar
  • Biggerstaff L, Cicero DC, Puckett A (2014) Suspect CEOs, unethical culture, and corporate misbehavior. J. Financial Econom. 117(1):98–121.CrossrefGoogle Scholar
  • BIS (2012) International Banking and Financial Market Developments (Bank for International Settlements, Basel, Switzerland).Google Scholar
  • Bollen NP, Pool VK (2009) Do hedge fund managers misreport returns? Evidence from the pooled distribution. J. Finance 64(5):2257–2288.CrossrefGoogle Scholar
  • Burns N, Kedia S (2006) The impact of performance-based compensation on misreporting. J. Financial Econom. 79(1):35–67.CrossrefGoogle Scholar
  • Corwin AS, Larocque S, Stegemoller M (2017) Investment banking relationships and analyst affiliation bias: The impact of global settlement on sanctioned and non-sanctioned banks. J. Financial Econom. 124(3):614–631.CrossrefGoogle Scholar
  • Coulter B, Shapiro J, Zimmerman P (2018) A mechanism for LIBOR. Rev. Finance 22(2):491–520.CrossrefGoogle Scholar
  • Duffie D, Stein JC (2015) Reforming Libor and other financial-market benchmarks. J. Econom. Perspectives 29(2):191–212.CrossrefGoogle Scholar
  • Eaglesham J (2013) Bank made huge bet, and profit, on Libor. Wall Street Journal (January 10), https://www.wsj.com/articles/SB10001424127887324442304578231721272636626.Google Scholar
  • Eisl A, Jankowitsch R, Subrahmanyam MG (2017) The manipulation potential of Libor and Euribor. Eur. Financial Management 23(4):604–647.CrossrefGoogle Scholar
  • Enrich D, Mollenkamp C, Eaglesham J (2011) U.S. Libor probe includes BofA, Citi, UBS. Wall Street Journal (March 18), https://www.wsj.com/articles/SB10001424052748703818204576205991698548286.Google Scholar
  • Fama EF, French KR (1992) The cross-section of expected stock returns. J. Finance 47(2):427–465.CrossrefGoogle Scholar
  • Flannery MJ, James CM (1984) The effect of interest rate changes on the common stock returns of financial institutions. J. Finance 39(4):1141–1153.CrossrefGoogle Scholar
  • Gandhi P, Lustig H (2015) Size anomalies in U.S. bank stock returns. J. Finance 70(2):733–768.CrossrefGoogle Scholar
  • Kumar P, Seppi DJ (1992) Futures manipulation with cash settlement. J. Finance 47(4):1485–1502.Google Scholar
  • Kuo D, Skeie D, Vickery J (2019) A comparison of Libor to other measures of bank borrowing costs. Working paper, Federal Reserve Bank of New York, New York.Google Scholar
  • Lo AW (2016) The Gordon Gekko effect: The role of culture in the financial industry. Econom. Policy Rev. 22(August):17–42.Google Scholar
  • Madureira L, Kadan O, Wang R, Tzachi Z (2009) Conflicts of interest and stock recommendations: The effects of the global settlement and related regulations. Rev. Financial Stud. 22(10):4189–4217.CrossrefGoogle Scholar
  • Mollenkamp C, Whitehouse M (2008) Study casts doubt on key rate. Wall Street Journal (May 29), https://www.wsj.com/articles/SB121200703762027135.Google Scholar
  • Monticini A, Thornton DL (2013) The effect of underreporting on libor rates. J. Macroeconomics 37(September):345–348.CrossrefGoogle Scholar
  • Nagel S (2012) Evaporating liquidity. Rev. Financial Stud. 25(7):2005–2039.CrossrefGoogle Scholar
  • Snider C, Youle T (2014) The fix is in: Detecting portfolio driven manipulation of the Libor. Working paper, University of California Los Angeles, Los Angeles.Google Scholar
  • Vaughan L, Finch G (2017) The Fix: How Bankers Lied, Cheated and Colluded to Rig the World’s Most Important Number (John Wiley & Sons, Chichester, UK).CrossrefGoogle Scholar
  • Wheatley M (2012) The Wheatley review of Libor: Final report. Technical report, HM Treasury, London.Google Scholar
  • Wong J (2009) LIBOR left in Limbo; A call for more reform. North Carolina Banking Inst. 13:365–384.Google Scholar
  • Youle T (2014) How much did manipulation distort the Libor? Working paper, University of Minnesota, Minneapolis.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.