Executives of Europe’s biggest banks are under pressure to surrender their bonuses after six companies were fined a record 1.7 billion euros ($2.3 billion) for manipulating benchmark interest rates. . .

http://www.bloomberg.com/news/2013-12-05/europe-s-bankers-face-calls-to-forsake-bonuses-amid-fines.html

J.P. Morgan’s alleged failure to file a key federal document more than five years ago is emerging as a critical component of a Justice Department investigation into whether the bank provided adequate warnings about the fraud of Bernard Madoff, people close to the probe said. . .

http://hereisthecity.com/en-gb/2013/12/07/jpmorgan-said-in-talks-over-madoff-warnings/

Barclays Plc (BARC) ran a proprietary trading fund that profited from the bank’s attempts to manipulate benchmark interest rates, the plaintiff in the U.K.’s first lawsuit linked to Libor misconduct said.

http://www.bloomberg.com/news/2013-12-06/barclays-fund-gained-on-libor-fixing-u-k-lawsuit-says.html

The Basel capital adequacy ratios lost credibility with financial markets during the crisis. This paper argues that failure was the result of the reliance of the Basel standards on overstated asset values in reported equity capital. The United States’ stress tests were able to assist in restoring credibility, in part because they could capture deterioration in asset values. However, whether stress tests will prove equally valuable in the next crisis is not clear. Some of the weaknesses in the Basel ratios are being addressed. Moreover, the U.S. tests’ success was the result of a combination of circumstances that may not exist next time. . . .

http://www.frbatlanta.org/documents/pubs/wp/wp1314.pdf

Former Goldman Sachs Group Inc. (GS) trader Matthew Taylor was sentenced to nine months in prison for concealing an unauthorized $8.3 billion trading position in 2007 that caused the bank to lose $118 million.

http://www.bloomberg.com/news/2013-12-06/ex-goldman-trader-taylor-gets-nine-months-for-concealing-loss.html