TOKYO – One particularly tough trading day in the summer of 2007, Eddy Takata, then a derivatives trader with Deutsche Bank in Tokyo, threw up his arms in frustration and shouted, "Manipulation!" A major interest rate had again moved in favor of a rival trader at UBS, a relative newcomer to Tokyo named Tom Hayes.
"MACD filters out the noise but gets the investor on the right side of major interest rate trends when there have been any.
As the housing market and the nation's economy slowly recover from the 2008 financial crisis, Wall Street is vulnerable on several fronts, including tighter regulations assembled in the aftermath of the crisis and continuing investigations into possible rigging of a major international interest rate.
Last week, the financial firm agreed to pay a $612 million fine to settle accusations by American and British regulators that traders influenced major benchmark interest rates to bolster profit.
On the second day of hearings at the British Parliament related to the recent rate-rigging scandal, Marcel Rohner, the former chief executive of UBS, and a number of former heads of the firm's investment bank were questioned about whether they were aware that some 40 people had altered major benchmark interest rates for financial gain.
This latest scandal, involving the rigging of a major trusted banking interest rate, might finally test the theories that he has long written into law that assume banks are best when regulated by themselves -- a now obviously dumb idea.
Brokers' notes with titles such as "forward misguidance" or "forward guidance RIP" give the impression of a major change in the interest rate outlook; the first rate rise is pencilled in for early next year, it seems.
The chaotic events of the past week — wild stock market swings, a major cut in the interest rate from the Federal Reserve and a rare bipartisan deal between Mr. Bush and Congressional Democrats on an economic stimulus package — has turned that equation on its head, just in time for Mr. Bush to deliver his final State of the Union address Monday night.
The GFE describes the loan and its major features, including the interest rate, upfront lender fees and fees of third parties such as title insurers and appraisers.
Major changes like reducing the interest rate are considered a loan modification.
LONDON — European regulators called for a major overhaul of a benchmark interest rate on Friday, but stopped short of demanding direct regulatory oversight after a rate-rigging scandal.
