Thursday, June 11, 2020
12:00 – 1:30 pm (Eastern Time)
11:00 – 12:30 pm (Central Time)
10:00 – 11:30 am (Mountain Time)
9:00 – 10:30 am (Pacific Time)
About the Unique Financial Instruments 3-Part Bootcamp
Every financial professional needs to understand the definitions, roles, risks and opportunities associated with unique financial instruments, terms and concepts that impact the industry every day. These instruments have contributed to both the growth and challenges in global economies over recent years.
Derivatives, Interest Rate Swaps and indices like LIBOR are all concepts that professionals in banks, credit unions, investment firms, as well as consulting firms should understand well. This critical bank webinar series will cover these instruments in detail to give attendees the functional knowledge to interpret and explain all of them.
If you are interested in saving $$ and registering for the full 3-part series ($549), rather than just a single session.
Part 1 - Derivative Products and Their Usage
Part 2 - Interest Rate Swaps - A Primer
Part 3 - The LIBOR Story
Unique Financial Instruments 301: The LIBOR Story - What Bank Executives, Accountants and Auditors Need to Know
In recent times (decades, it seems) there have been numerous financial scandals. Some, such as the Madoff scandal took up all the financial press. What gets covered in the press are the scandals that are sensationalized because they affect individual investors – the little guy. But, one scandal that seems to have attracted relatively little coverage compared to the more sensational scandals was the LIBOR scandal. The LIBOR scandal didn’t involve the little guy directly. Instead it had financial implications that affect pricing throughout the economy for all types of transactions. The LIBOR scandal was the most costly from a financial viewpoint and from the view point of a loss in confidence in the legitimacy of the financial systems.
The LIBOR scandal damaged confidence in the “private club” pricing system in place and used for many years. That system was manipulated to benefit those who had the power to set interest rates. That system did not arrive at a fair, impartial market rate. It didn’t do what it was supposed to do. It failed us all.
This 90-minute bank webinar explores the LIBOR system that was in place for many years. It discusses the beginnings of LIBOR from its inception in 1979. It addresses how LIBOR was created; what happened to LIBOR; the actual manipulation of LIBOR; the scandal; the aftermath of the scandal; alternative rates now proposed; and the future of LIBOR. A new universal rate for international transactions has become necessary. Unfortunately, LIBOR was abused in order to favor the rate setters, themselves.
This banking webinar addresses:
- The LIBOR system that was in place
- How LIBOR was calculated
- Who calculated LIBOR
- What happened over the years
- The scandal itself
- Transfer of responsibility to regulators away from private sector manipulations
It covers the initial manipulation through the current status, where, today, LIBOR is being phased out. It suggests other alternatives rates and takes the attendees to the current date where SOFR is about to replace LIBOR.
This financial webinar is informative and useful for all auditors and accountants who have clients or auditors that have contracts that use LIBOR as a pricing reference. It is also important training for all internal and external accountants and auditors who have encountered auditee or client financial transactions that have made reference to LIBOR as a pricing mechanism. Use this webinar to learn how LIBOR was created, where LIBOR has been, and, now, how it has outlived its usefulness.
Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.
1.5 CPE Credits & 1.8 AAP Credits