Libor Rate Fixing Scandle Uncovered

[crcballer55]

After being in banking and knowing that everything you say in writing is recorded, I'm amazed at how blatant these guys became in their outspokenness of committing illegal acts. I'm hoping in the near future we can have a president similar to Roosevelt that's willing to break up companies that are capable of single handedly taking down the economy.

http://www.washingtonpost.com/business/economy/2012/07/13/gJQAoZgwiW_story.html?tid=pm_business_pop

[h1]Libor rigging concerns surfaced in 2007[/h1]

Chris Ratcliffe/BLOOMBERG - Robert "Bob" Diamond, former chief executive officer of Barclays Plc, leaves Portcullis House in London, U.K., on Wednesday, July 4, 2012. Diamond, who gave evidence to the Treasury Select Committee today, resigned as chief executive officer after regulators fined the bank 290 million pounds ($453 million) for attempting to rig the London interbank offered rate (Libor). Photographer: Chris Ratcliffe/Bloomberg *** Local Caption *** Bob Diamond

[h3]By Zachary A. Goldfarb, Published: July 13[/h3]

[article=""]
Federal regulators had evidence that major banks could be manipulating one of the world’s most important interest rates a year before the practice came to an end, according to documents released by the Federal Reserve Bank of New York on Friday.

As early as 2007, the officials at the New York Fed suspected that this key rate, which serves as the basis for the interest rates that consumers pay on many loans, did not accurately reflect market forces, the documents show. Then, in April 2008, the New York Fed was explicitly warned by an employee of the British bank Barclays that it was participating in a ruse to “fit in with the rest of the crowd,
[/article]

 

[papageorgeo510]

No surprise their.

 

[mo matik]

INFOGRAPHIC: The LIBOR Scandal Explained

Spoiler

Spoiler

Spoiler [+]

Spoiler

 

[jc08]

I think this will garner more and more attention over time as other banks become caught up in this scandal (no way Barclays went about this alone or else it couldn't possibly be rigged). Interesting how the public outrage isn't greater, I think it's a combination of people not understanding the process of LIBOR / its ramifications and people just so desensitized to financial crimes.

http://news.sky.com/story...-implicates-libor-rivals

 

[atlien seeko]

pfl

 

[mo matik]

[h1]The Libor Scandal and Capitalism's Moral Decay [/h1]

If an organized crime group was accused of breaking into the Nassau County Treasurer's Office on New York's Long Island and stealing $13 million, outrage would be widespread. And if the same group was accused of stealing millions from the City of Baltimore and other struggling municipalities, they would emerge as an issue in the presidential campaign.

Instead, the Libor scandal is emerging in dribs and drabs and drawing little public attention. The middle class is being victimized, and there is little protest.

So Barclays' victims weren't just other banks and traders. They included taxpayers in dozens of communities who are believed to have paid millions more in interest than they should have at the height of the financial crisis. Teachers and other public servants may have been laid off because of bankers' pursuit of ever-higher profits.

Lawsuits filed by the City of Baltimore and dozens of other parties against Barclays, JP Morgan, Bank of America, Citibank and Deutsche Bank have been consolidated into a single case in a New York federal court. Banks are denying any wrongdoing, and the true scope of the losses -- and the role of American banks -- is expected to emerge in the complex legal battles ahead.

 

[mr brown]

Originally Posted by JC08

I think this will garner more and more attention over time as other banks become caught up in this scandal (no way Barclays went about this alone or else it couldn't possibly be rigged). Interesting how the public outrage isn't greater, I think it's a combination of people not understanding the process of LIBOR / its ramifications and people just so desensitized to financial crimes.

http://news.sky.com/story...-implicates-libor-rivals

this right here most likely.

 

[crcballer55]

Originally Posted by Mo Matik

[h1]The Libor Scandal and Capitalism's Moral Decay [/h1]

If an organized crime group was accused of breaking into the Nassau County Treasurer's Office on New York's Long Island and stealing $13 million, outrage would be widespread. And if the same group was accused of stealing millions from the City of Baltimore and other struggling municipalities, they would emerge as an issue in the presidential campaign.

Instead, the Libor scandal is emerging in dribs and drabs and drawing little public attention. The middle class is being victimized, and there is little protest.

So Barclays' victims weren't just other banks and traders. They included taxpayers in dozens of communities who are believed to have paid millions more in interest than they should have at the height of the financial crisis. Teachers and other public servants may have been laid off because of bankers' pursuit of ever-higher profits.

Lawsuits filed by the City of Baltimore and dozens of other parties against Barclays, JP Morgan, Bank of America, Citibank and Deutsche Bank have been consolidated into a single case in a New York federal court. Banks are denying any wrongdoing, and the true scope of the losses -- and the role of American banks -- is expected to emerge in the complex legal battles ahead.


I think the first statement in the article is more apt than anything

The scandal engulfing the financial industry is yet another sign that our business leaders no longer respect the rule of law.

When Barclays only has to pay a $453MM fine for all this? That's basically just a cost of doing business to anyone that size. Why should they stop when the rewards for their actions outweigh the repercussions by an exponential factor? We are outraged when Chase loses $5B but at least that's THEIR money. This on the other hand... This is equivalent to the credit rating companies valuing the CDO's & Mortgage Backed Securities much higher than they should have.

 

[SUSHI AND GRITS]

The saddest part about all of this is everybody knows what's going on, yet nothing is being done about it. Shows you what/who is really in control out here.

 

[scott frost]

"Give a man a gun and he can rob a bank.  Give a man a bank and he can rob the world."

Damn.........

 

[lukewarm skywalker]

Originally Posted by Scott Frost

"Give a man a gun and he can rob a bank.  Give a man a bank and he can rob the world."

Damn.........

Realest !@$ I've read today.
...

 

[denni5themenace]

thanks for posting this, OP. the greed in people is just disgusting.

 

[stringer bell 32]

smh

 

[wr]

 

[xtapolapacetl]

Watch the dudes responsible get bonuses in the not too distant future, and the people who protest similar to the Occupy Wall Street movement get ridiculed.