From Stuff.co.nz by Richard Meadows : “A banking insider says some New Zealand banks made up to $1.5 million a day manipulating inter-bank interest rates.
The anonymous source says there was widespread rigging of the benchmark inter-bank BKBM rate, mirroring Europe’s Libor (London Inter-bank Offered Rate) scandal that rocked markets worldwide.
He says he wanted to blow the whistle on what he claimed may be the biggest and longest-running financial scam in New Zealand history.
Sources claim manipulation in New Zealand dated from the 1990s…
A spokesman for a New Zealand banking industry body said no misconduct issues had ever been identified, but declined to explain why the system has now been reformed…
The whistleblower claimed the behaviour was endemic in several banks during the 2000s, and had only been reined-in during recent years…
Banks have self-regulated through NZFMA, an industry body that oversees BKBM.
Reforms were carried out in 2007, but the group has declined Fairfax Media requests to explain why.
No regulators have ever investigated, although the FMA says it did a “temperature check” on recent data…”