Bank inquiry after Libor rate-rigging

[Kassy]

http://www.bbc.co.uk/news/business-18677356

Barclays (and RBS) are in trouble because they manipulated the Libor rate.

The banks are allready in blame mode & trying to purge themselves of the black sheep to avoid having to look at their actual business models.

Soon they will have to say stuff under oath to in some parliamentary inquiry which should not be a problem...

[Kassy]

http://truth-out.org/opinion/item/10...e-outrage-here

Barclays & 16 other big banks.

Rogue traders managed by peter principled rogue traders.

[Ross]

Soon they will have to say stuff under oath to in some parliamentary
inquiry which should not be a problem...

Huh? Say what !

Since the regulators were apparently complicit having any sort of
inquiry is a very very big problem . Primarily because statements made at
such inquires will be the heart and soul of court cases to retrieve lost
trillions. Clearly TPTB will try to make this scandal disappear ASAP .

IMO it fundamentally stems from TPTB developing a god complex and
losing sight of their responsibility to respect the property rights of individuals.

I also blame the left-wing press for this state of affairs because they
have positioned themselves as the new arbiters of community morality .
A function they perform with both eyes closed .
.

[Kassy]

British parliament was never complicit & they are the ones calling for the enquiry. They aren't that impressive as you can see in the Murdoch case.

About everybody is involved in this scandal including the regulators:

http://www.zerohedge.com/news/and-no...ged-lieborgate

[Ross]

Thank-you . Yes I now see an inquiry is proposed but fail to understand
how it will not be extremely dangerous to TPTB .

The Bank of England may be independent but it works closely
with Treasury . Since the BOE was obviously aware of the
manipulation it is hard to see how the parliamentarians in charge
of Treasury can claim to be both competent and unaware .

Managing the Libor was after all an important aspect to managing
financial panic . Which raises the interesting question of how
TPTB will now conceal the raging fire below decks .

I note the FTSE short squeeze continues , presumably that is a
component of allaying anxieties .



.

[Kassy]

Bob Diamond doing a 'Murdoch'. He only came aware of this rate rigging last month...

http://www.bbc.co.uk/news/business-18708226

He said he only learned the true extent of the scandal this month

He defended the bank's actions to address the problems, saying that Barclays acted quickly.

"As soon as we recognised [the problem] three years ago... we said 'let's get to the bottom of this'", he said.

Yeah right.

[Ross]

I saw bits of the Diamond interrogation . A very entertaining
farce . I thought Diamond made monkeys of them , but then
perhaps it was never intended or wanted that he would reveal
the whole story .

The way I read it Libor was manipulated down to conceal
the banking firestorm . Banks were reluctant to take risks
lending to other banks and interbank lending rates are/were a
reflection of that fear . So it was necessary to maintain an
artificially low Libor to keep up an appearance of normality .

To be sure stability for 100s of $Trillions in interest rate related
derivatives was a major factor but I suspect even that was
mainly about saving the system rather than scamming it .

[Kassy]

Oh totally but maybe saving it = scamming?

[penguinzee]

Or, maybe more accurately,saving the scam...

Franc (penguinzee)

[Kassy]

Or maybe human nature:

http://www.zerohedge.com/news/guest-...-soviet-growth

Graphs are fun, ramifications less so but i'm mainly posting this for the graphs.

[penguinzee]

It just got a LOT more interesting-

http://www.zerohedge.com/news/deep-l...edge-fund-link

Basically, there was an old boy network (connected by LinkedIn, of all things) of former bank traders who worked the LIBOR desk, all departing to work for Swiss Hedge Funds specializing in-you guessed it-LIBOR derivative trades. It appears said network got inside info from their cronies at the banks they used to work for, and traded on it for their own profit. How much they used LinkedIn to stay connected no one yet knows, but they are ALL connected on there...

I think they're all flying to the Seychelles now, probably the only place left for them to hide...

Franc (penguinzee)

[Kassy]

And Timmy warned them in 2008:

http://www.bbc.co.uk/news/business-18986953