LIBOR Scandal: The Crime of the Century?

The latest interest-rate-fixing LIBOR scandal is being heralded as the most egregious in a generation

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CARL COURT / AFP / Getty Images

Former Barclays CEO Bob Diamond leaves after giving evidence to the British Treasury Select Committee in London on July 4, 2012

The 21st has been a banner century for financial and accounting scandals. Enron, the dotcom bust, the subprime-mortgage crisis and the bank bailouts have all contributed to the very low esteem in which the American public holds Corporate America in general, and high finance in particular. So it is no small feat that the latest interest-rate-fixing LIBOR scandal is being heralded as the most egregious in a generation or, as Robert Scheer put it in the Nation, “the crime of the century.”

LIBOR is an acronym for the London interbank offered rate, and it is the average interest rate the world’s largest banks pay when they borrow money. And this figure (or figures, as different LIBORs are calculated for different loan maturities and currencies) is used to price hundreds of trillions of dollars worth of financial instruments, from high-yield corporate debt to student loans.

(MORE: Big Banks Accused of Manipulating Key Interest Rates)

Considering the importance of this benchmark rate and the financial industry’s recent track record, it is no wonder that many in the press are up in arms about Barclays’ recent admission that it intentionally submitted false rates in order to manipulate LIBOR for its own gain. Barclays has been fined more than $450 million by British and American regulators, but it is by no means the only bank thought to have deceptively tried to influence LIBOR — thus the outrage expressed this past week in the media.

Scheer, for instance, pulled no punches in his polemic:

“Modern international bankers form a class of thieves the likes of which the world has never before seen. Or, indeed, imagined … It reveals that behind the world’s financial edifice lies a reeking cesspool of unprecedented corruption. The modern-day robber barons pillage with a destructive abandon totally unfettered by law or conscience and on a scale that is almost impossible to comprehend.”

So why did traders at Barclays submit false LIBOR figures? There are two ways in which Barclays and other large banks could have benefited. The first is confidence. Two of the safeguards built into the computation of LIBOR are that all the banks’ submissions are public, and the top and bottom four are removed from the calculation. This way no one bank can effectively raise or lower LIBOR in order to profit from prior knowledge of where the rate will be, and transparency will dissuade banks from trying.

But because of the public nature of the submissions, there is a danger that a bank will understate its LIBOR submissions in order to boost markets’ confidence in the institution. This prospect became more likely during the financial crisis, when a bank reporting high borrowing costs could have dire and perhaps fatal effects.

The more pernicious charge is that derivatives traders Barclays, along with several other as-yet-unnamed banks, colluded to influence LIBOR, not so that investors would have confidence in them, but so that they could reap profits on derivatives trades. According to a report in the Economist:

“The sums involved might have been huge. Barclays was a leading trader of these sorts of derivatives, and even relatively small moves in the final value of LIBOR could have resulted in daily profits or losses worth millions of dollars.”

(MORE: The End of E-Mail? A New Social Network Built for Office Communication Says Yes)

The first contention, that banks were systematically understating their borrowing costs, with the tacit support — as former Barclays CEO Bob Diamond alleged in hearings last week — of the regulators, is a serious one. Those responsible for this behavior should be punished, but future incidents of such behavior could be prevented by merely reforming the way LIBOR is calculated.

The second charge is graver, because it speaks to the moral compass, or total lack thereof, of the world’s financial professionals. Much of the American public believes that financiers are greedy scoundrels who will stop at nothing — including blatant fraud — just to make a buck. This is an oversimplification. Finance is a necessary and societally beneficial industry. But scandal after scandal has proved that the industry’s culture is deeply flawed, and that it has, as the Economist put it, a “rotten heart.”

So is the LIBOR scandal the crime of the century? The full extent of it has yet to be revealed, and if it is discovered that many more banks were lying about the rates at which they were borrowing, or worse, working together to defraud the greater public through LIBOR, then it’s hard to think of a recent corporate offense that’s more troubling. But, more important, the cumulative effect of these scandals is that the public and the government no longer trust the industry to set its own standards for acceptable behavior. Diminished confidence in the financial industry by businesses and the public will retard economic growth generally. And if an industry as vital as finance is unable to police itself, then government has the right — and perhaps the responsibility — to do more policing itself. Unfortunately, the price of that increased regulation, in whatever form it takes, will be borne by all of us.

MORE: The Barclays LIBOR Scandal Is a Clear Case for Greater Consumer Protection

59 comments
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seanolearyoz
seanolearyoz

There is a short essay on the impact and meaning of the LIBOR fraud in the context of Australia which is fast becoming another global financial hub:  http://www.geocities.ws/liborfraud/

doylespar
doylespar

Gee, bird of a feather f---  us together, Mr. Diamond headed up Romney fund raising in England , screwing the public is a capitalist talent benefiting only a few at the top.Best leave Mr. Robme lower on the totem pole, he will not make anyone like us rich. And really ,how do you think they got that way, aren't they all crooks?

jeffreydurbin
jeffreydurbin

Let's keep in mind that by understating LIBOR they REDUCED the borrowing costs for millions of consumers whose loans were tied to LIBOR.  I think a lot of people who are screaming for blood actually benefited from the practice.  (Not that I am condoning it.)

Manny T
Manny T

Who are these 'many' press outlets that have been outraged about it? I have heard 1 story on Fox and haven't heard a peep on MSNBC or CNN. Only CNBC had any kind of extended treatment of it and that was because a guest decided to bring it up during his segment. 

This is an outrage and the press should be talking about this and not whether Romney's jet skit is un-American or whether Obama's mentor from 30 years ago is a communist. 

Mark Sabbai
Mark Sabbai

Why aren't any of these banking criminals being sent to prison? 

aaabbbzzz
aaabbbzzz

The Barclays counterfactual

Bob Diamond resigns from Barclays over Libor scandal - live

3 July 2012 10:11AM

 

Why blame the banks’traders. It was the Barclays top management’s instructions that they were made to follow. In one word, the bank and top management of Barclays stink. It all boils down to nothing but greed to make more money for themselves and the shareholders. How come the UK authorities are still sleeping. If one can recall, a few years ago at the time of financial crisis hitting large UK banks, only Barclays did not want any Government support/bailout (unlike RBS) as if they had taken the Government support then, this scandal (LIBOR fixation) would have broken out long ago and taxpayers would have saved some money then. Unfortunately all was wrapped so well.

Libor/Eibor (in the UAE) Fixation: This game is not new to the Barclays top management. They have been doing this in the UAE operations as well. The top management in their Dubai operations are making big monies by such methods only and also getting fat bonus for job well done.  Who cares if Dubai, UAE goes down financially in the bargain.  How can they be so naïve? The article quoted below in an Arab magazine shows why. Barclays was to clever for them. 

 

QUOTE

Eibor panel of banks expanded to add Barclays

Published Monday, October 12, 2009

The UAE Central Bank has expanded the Emirates Interbank Offered Rate (Eibor) panel of banks from 11 to 12 by adding Barclays Bank and thus taking the total number of foreign banks from three to four. Talking to Emirates Business, a top official from the Treasury Department of the Central Bank said the panel was originally planned to comprise 12 banks. "One bank had failed to show up for the meeting convened to discuss on the constitution of the Eibor panel, and so we had to keep the number at 11," he said.In August, the Central Bank set up the new panel of 11 banks for Eibor adding four local banks and dropping two international banks from the then existing list of banks. The four new local banks are First Gulf Bank, Union National Bank, Mashreqbank and RakBank. Likewise, the two international banks that were dropped from the previous panel were Lloyds Bank and ABN Amro arm of Royal Bank of Scotland (RBS). According to analysts, given the current trend in interest rates, the addition of foreign banks will have a downward pressure on Eibor as rates offered by foreign banks are lower compared with that offered by their local counterparts.  An analysis of yesterday's rates offered by the 12 banks and posted on Central Bank site shows that while the average of one-week rates offered by foreign banks was at 0.65 per cent that offered by the local banks was higher at 0.71 per cent. In the case of one-month rate, while the average offered rates by foreign banks was 1.312 per cent, that offered by the local banks was 1.737 per cent.

UNQUOTE

 

aaabbbzzz
aaabbbzzz

The Barclays counterfactual

Bob Diamond resigns from Barclays over Libor scandal - live

3 July 2012 10:11AM

 

Why blame the banks’traders. It was the Barclays top management’s instructions that they were made to follow. In one word, the bank and top management of Barclays stink. It all boils down to nothing but greed to make more money for themselves and the shareholders. How come the UK authorities are still sleeping. If one can recall, a few years ago at the time of financial crisis hitting large UK banks, only Barclays did not want any Government support/bailout (unlike RBS) as if they had taken the Government support then, this scandal (LIBOR fixation) would have broken out long ago and taxpayers would have saved some money then. Unfortunately all was wrapped so well.

Libor/Eibor (in the UAE) Fixation: This game is not new to the Barclays top management. They have been doing this in the UAE operations as well. The top management in their Dubai operations are making big monies by such methods only and also getting fat bonus for job well done.  Who cares if Dubai, UAE goes down financially in the bargain.  How can they be so naïve? The article quoted below in an Arab magazine shows why. Barclays was to clever for them. 

 

QUOTE

Eibor panel of banks expanded to add Barclays

Published Monday, October 12, 2009

The UAE Central Bank has expanded the Emirates Interbank Offered Rate (Eibor) panel of banks from 11 to 12 by adding Barclays Bank and thus taking the total number of foreign banks from three to four. Talking to Emirates Business, a top official from the Treasury Department of the Central Bank said the panel was originally planned to comprise 12 banks. "One bank had failed to show up for the meeting convened to discuss on the constitution of the Eibor panel, and so we had to keep the number at 11," he said.In August, the Central Bank set up the new panel of 11 banks for Eibor adding four local banks and dropping two international banks from the then existing list of banks. The four new local banks are First Gulf Bank, Union National Bank, Mashreqbank and RakBank. Likewise, the two international banks that were dropped from the previous panel were Lloyds Bank and ABN Amro arm of Royal Bank of Scotland (RBS). According to analysts, given the current trend in interest rates, the addition of foreign banks will have a downward pressure on Eibor as rates offered by foreign banks are lower compared with that offered by their local counterparts.  An analysis of yesterday's rates offered by the 12 banks and posted on Central Bank site shows that while the average of one-week rates offered by foreign banks was at 0.65 per cent that offered by the local banks was higher at 0.71 per cent. In the case of one-month rate, while the average offered rates by foreign banks was 1.312 per cent, that offered by the local banks was 1.737 per cent.

UNQUOTE

 

taxxee
taxxee

Here is all you need to know:  The big boys print money. The rest of it is a puppet show to obscure that fact.  

aaabbbzzz
aaabbbzzz

The Barclays counterfactual

Bob Diamond resigns from Barclays over Libor scandal - live

3 July 2012 10:11AM

 

Why blame the banks’traders. It was the Barclays top management’s instructions that they were made to follow. In one word, the bank and top management of Barclays stink. It all boils down to nothing but greed to make more money for themselves and the shareholders. How come the UK authorities are still sleeping. If one can recall, a few years ago at the time of financial crisis hitting large UK banks, only Barclays did not want any Government support/bailout (unlike RBS) as if they had taken the Government support then, this scandal (LIBOR fixation) would have broken out long ago and taxpayers would have saved some money then. Unfortunately all was wrapped so well.

Libor/Eibor (in the UAE) Fixation: This game is not new to the Barclays top management. They have been doing this in the UAE operations as well. The top management in their Dubai operations are making big monies by such methods only and also getting fat bonus for job well done.  Who cares if Dubai, UAE goes down financially in the bargain.  How can they be so naïve? The article quoted below in an Arab magazine shows why. Barclays was too clever for them.  

 

QUOTE

Eibor panel of banks expanded to add Barclays

Published Monday, October 12, 2009

The UAE Central Bank has expanded the Emirates Interbank Offered Rate (Eibor) panel of banks from 11 to 12 by adding Barclays Bank and thus taking the total number of foreign banks from three to four. Talking to Emirates Business, a top official from the Treasury Department of the Central Bank said the panel was originally planned to comprise 12 banks. "One bank had failed to show up for the meeting convened to discuss on the constitution of the Eibor panel, and so we had to keep the number at 11," he said.In August, the Central Bank set up the new panel of 11 banks for Eibor adding four local banks and dropping two international banks from the then existing list of banks. The four new local banks are First Gulf Bank, Union National Bank, Mashreqbank and RakBank. Likewise, the two international banks that were dropped from the previous panel were Lloyds Bank and ABN Amro arm of Royal Bank of Scotland (RBS). According to analysts, given the current trend in interest rates, the addition of foreign banks will have a downward pressure on Eibor as rates offered by foreign banks are lower compared with that offered by their local counterparts.  An analysis of yesterday's rates offered by the 12 banks and posted on Central Bank site shows that while the average of one-week rates offered by foreign banks was at 0.65 per cent that offered by the local banks was higher at 0.71 per cent. In the case of one-month rate, while the average offered rates by foreign banks was 1.312 per cent, that offered by the local banks was 1.737 per cent.

UNQUOTE

 

 

aaabbbzzz
aaabbbzzz

The Barclays counterfactual

Bob Diamond resigns from Barclays over Libor scandal - live

3 July 2012 10:11AM

 

Why blame the banks’traders. It was the Barclays top management’s instructions that they were made to follow. In one word, the bank and top management of Barclays stink. It all boils down to nothing but greed to make more money for themselves and the shareholders. How come the UK authorities are still sleeping. If one can recall, a few years ago at the time of financial crisis hitting large UK banks, only Barclays did not want any Government support/bailout (unlike RBS) as if they had taken the Government support then, this scandal (LIBOR fixation) would have broken out long ago and taxpayers would have saved some money then. Unfortunately all was wrapped so well.

Libor/Eibor (in the UAE) Fixation: This game is not new to the Barclays top management. They have been doing this in the UAE operations as well. The top management in their Dubai operations are making big monies by such methods only and also getting fat bonus for job well done.  Who cares if Dubai, UAE goes down financially in the bargain.  How can they be so naïve? The article quoted below in an Arab magazine shows why. Barclays was to clever for them.  

 

QUOTE

Eibor panel of banks expanded to add Barclays

Published Monday, October 12, 2009

The UAE Central Bank has expanded the Emirates Interbank Offered Rate (Eibor) panel of banks from 11 to 12 by adding Barclays Bank and thus taking the total number of foreign banks from three to four. Talking to Emirates Business, a top official from the Treasury Department of the Central Bank said the panel was originally planned to comprise 12 banks. "One bank had failed to show up for the meeting convened to discuss on the constitution of the Eibor panel, and so we had to keep the number at 11," he said.In August, the Central Bank set up the new panel of 11 banks for Eibor adding four local banks and dropping two international banks from the then existing list of banks. The four new local banks are First Gulf Bank, Union National Bank, Mashreqbank and RakBank. Likewise, the two international banks that were dropped from the previous panel were Lloyds Bank and ABN Amro arm of Royal Bank of Scotland (RBS). According to analysts, given the current trend in interest rates, the addition of foreign banks will have a downward pressure on Eibor as rates offered by foreign banks are lower compared with that offered by their local counterparts.  An analysis of yesterday's rates offered by the 12 banks and posted on Central Bank site shows that while the average of one-week rates offered by foreign banks was at 0.65 per cent that offered by the local banks was higher at 0.71 per cent. In the case of one-month rate, while the average offered rates by foreign banks was 1.312 per cent, that offered by the local banks was 1.737 per cent.

UNQUOTE

 

 

Michaelprotects
Michaelprotects

Crime of the century? Not a chance, it's the largest crime the world has ever seen.

Ollander
Ollander

"...future incidents of such behavior could be prevented by merely reforming the way LIBOR is calculated."

Really? How exactly? LIBOR is subjective; actual rates aren't really used. Changing the way it's calculated won't make any difference as long as the incentive to submit falsified lending cost estimates is available. One of two things need to happen, none of which is "merely reforming the way LIBOR is calculated." Either move away from LIBOR completely to a more statistical measure or put in place a system of incentives that will reinforce accurate reporting.

ChowT
ChowT

The subprime takes the gold medal.

Thank you to Goldman Sachs and LLyod Blankfein and John Paulson.

MaryWaterton
MaryWaterton

I wouldn't say it's THE CRIME of the century. I would say it's a continuation of the CRIMES of the century which have been continuing with regularity and government approval since 2008. Think about it. Other than Bernie Maddoff, nobody has gone to jail.

mikeshelby
mikeshelby

Added a link to this story on the2news .com

Guest
Guest

The seriousness of this is being underestimated by some people. Knowingly missrepresenting these costs, for personal enrichment -- when The Public trusted these individuals to operate in good faith -- is fraud, outright. There's no way around it.

For example, it's the same as their helping themselves to a few dollars out of your checking account, a day, without your permission and without offering any goods or services in return.

shane sealy
shane sealy

"Finance is a necessary and societally beneficial industry. But scandal after scandal has proved that the industry’s culture is deeply flawed, and that it has, as the Economist put it, a 'rotten heart.'"

Who exactly, other than the ruling class, benefits from the financial industry? This article reeks of ideology. It's utterly ridiculous to pretend like this is just the problem of moral depravity on the part of the people who work in the financial sector. There's a reason all of those people are doing what they're doing, and it has to do with the capitalist system itself. The idea that the solution to these problems is nicer bankers with functioning moral compasses is preposterous and the author of this article should be embarrassed to have penned it.

Manny T
Manny T

Capitalism isn't the problem. Crony Capitalism is the problem. There is a huge difference. 

I'm basing this next comment based on your avatar, Communism has been proved to be a far greater destroyer of humanity than Crony Capitalism even has and that is saying something. 

Return American to a truly Capitalist society and we will flourish once again. 

Paul Ryan
Paul Ryan

Market concentration causes free markets to be less free and more likely to be manipulated by a small group of conspirators.  Financial institutions must be smaller.  It's time to break out the antitrust rules and see if they will work.

 

NStat
NStat

english have terrible teeth 

Erik Corr
Erik Corr

Interest rates are the cost and value of money and the whole FIAT system is based on interest retes controlled by governments and massive banks and not really free market forces but more of a plutocracy. A true free market would be lots of little banks that do not have massive influence with governments and both gov and banks would have less debt since debt involves risk. The bailouts helped make the worlds economies stagnate and yet this is never said in the media.

ERenger
ERenger

These thieves should be sentenced to 25 years hard LIBOR.

Firozali A.Mulla
Firozali A.Mulla

Tell me a thing. What if there is huge hole in this. And it is Politicians have been virtually "useless" so far at getting to the truth behind the banking scandal, one of the MPs responsible for investigating the affair has admitted.Andrea Leadsom, whose forensic questioning of the former chief executive of Barclays, Bob Diamond, led to his only uncomfortable moments during last week's cross-examination by the Commons Treasury Select Committee, said: "I don't think we felt we did a fantastic job. It's a fair criticism to say, 'You guys were useless'."We had great weaknesses in that we didn't have email trails. We didn't have recordings of the morning meetings where you could point to what had been said. All we really had were the regulators' reports, what we'd seen in the media."Her frank remarks, in an interview with The Independent, will raise doubts about whether the larger parliamentary inquiry being set up to investigate the banking scandal will be able to uncover the whole truth. David Cameron has rejected Labour's calls for a judge-led inquiry, arguing that it would take too long. Several of the MPs who questioned Mr Diamond last week are now considering calling him back for a second bout because they are dissatisfied with his answers.Paul Tucker, the Deputy Governor of the Bank of England, will be questioned by the same committee today about the now-infamous telephone call he had with Mr Diamond at the height of the banking crisis in 2008. Any clash between his evidence and Mr Diamond's will add to the pressure for the former Barclays head to be recalled.One of the committee members, Pat McFadden, who was a business minister under Labour, said: "I can see that happening [Mr Diamond being recalled] after we have talked to other witnesses. There were some inconsistencies in what he told us. We'll ask Tucker if his version of the phone call tallies with Bob Diamond's." been virtually "useless"(USELESS) so far at getting to the truth behind the banking scandal, one of the MPs responsible for investigating the affair has admitted.Andrea Leadsom, whose forensic questioning of the former chief executive of Barclays, Bob Diamond, led to his only uncomfortable moments during last week's cross-examination by the Commons Treasury Select Committee, said: "I don't think we felt we did a fantastic job. It's a fair criticism to say, 'You guys were useless'.

"We had great weaknesses in that we didn't have email trails. We didn't have recordings of the morning meetings where you could point to what had been said. All we really had were the regulators' reports, what we'd seen in the media."Her frank remarks, in an interview with The Independent, will raise doubts about whether the larger parliamentary inquiry being set up to investigate the banking scandal will be able to uncover the whole truth. David Cameron has rejected Labour's calls for a judge-led inquiry, arguing that it would take too long. Several of the MPs who questioned Mr Diamond last week are now considering calling him back for a second bout because they are dissatisfied with his answers.Paul Tucker, the Deputy Governor of the Bank of England, will be questioned by the same committee today about the now-infamous telephone call he had with Mr Diamond at the height of the banking crisis in 2008. Any clash between his evidence and Mr Diamond's will add to the pressure for the former Barclays head to be recalled.One of the committee members, Pat McFadden, who was a business minister under Labour, said: "I can see that happening [Mr Diamond being recalled] after we have talked to other witnesses. There were some inconsistencies in what he told us. We'll ask Tucker if his version of the phone call tallies with Bob Diamond's." Now you be the judge the jury and the bandidos, Come tell me how do we move? I thank you Firozali A.Mulla You see mud clinging is the game when the climbing becomes stiff and we want to live like primitive society not move-in an inch to prove Darwin may have been right after all.There you have it, the subject phrase stops me here, as I was in the audit firm and I despised this one agree with the ratios but how does that help us in creating employment the one huge problem we have . Without employments what is the point in having oil . May be even the coal could help but we need machinery for that and that too I have said are obsolete. We have one chance to keep oil at the level it is and the employment as is. Let the bank look at the cash flows again and then tell us the truth where they have the cash. We are then able to think, I said able to there is no guarantee than bank have done the good home work as I see the Barclays having the header never seen before. Is that really the bank we have, surprises all. . To be very honest the HUGE 5 we had (I include the auditors as well as they are the ones who use the green, blue, blue, red, black tick to say, "We have obtained all the necessary information that was availed to us and we are satisfied subject to.. More promises, more promise.( But then I do not blame the leaders) No I am not saying no one is doing something but there is nothing visible would be the right phrase. European leaders had hailed a June 28-29 EU summit as a breakthrough, promising fresh capital for Spain's struggling banks, a European bank union to keep the lenders in line and making it easier for the bloc's new bailout fund to help states in trouble. Investor sentiment in Asia and Europe was also dented by Friday's weak US jobs data that raised fresh concerns about the world's biggest economy. LONDON: European shares sank on Monday; Spanish bond yields spiked to danger levels above 7.0 per cent and the euro languished at a two-year low point in volatile deals before a key Eurozone finance meeting. Madrid's benchmark IBEX 35 index of leading shares tumbled 1.71 per cent to 6,623.90 points and Rome's FTSE Mib shed 0.82 per cent to 13,622.29, as investors fretted over fresh turmoil for Italian and Spanish bonds. London's FTSE 100 index meanwhile slid 0.38 per cent to 5,641.10 points in morning trade, Frankfurt's DAX 30 shed 0.21 per cent to 6,396.76 points and in Paris the CAC 40 lost 0.57 per cent to 3,150.84. Later on Monday, at 1600 GMT, Eurozone finance ministers meet under pressure to push ahead quickly with measures agreed last month to tackle the region's sovereign debt crisis, as market sentiment turns increasingly negative. Investors remain highly anxious that the Eurozone debt crisis, which has already sunk Ireland, Greece and Portugal, could spread to Spain and Italy. In a gloomy omen, the price Spain must pay to borrow for 10 years rose sharply to 7.026 per cent on Monday, from 6.912 per cent late on Friday. And the European single currency dived to $1.2251 in earlier Asian trade, hitting the lowest point since July 1, 2010. It stood at $1.2281. "Eurozone finance ministers meet in Brussels, ostensibly to build on the decisions announced at the summit two weeks ago," said IG Index analyst Chris Beauchamp. "As if to underline the urgency of their discussions, yields for Spanish and Italian bonds are on the march again, although this latest meeting is likely to end with a statement of intent but little else." But after an initially euphoric response, investors have switched tack, pushing Spanish long-term borrowing costs back up to the kind of sky-high rate which forced Greece, Ireland and Portugal into massive EU-IMF bailout deals. "Ministers will meet today in Brussels and high on the agenda will be clarifying in some degree the details of what was agreed at the EU leaders' summit at the end of June," said economist Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ in London. With outlook who would want to save? I have no idea what exactly has transpired in the meetings but the leaders seem to agree on one thing, ?We must get out of the rut or we will have bigger problem later. Surprisingly Obama had mentioned ?We have to have better ties when German leader went to America but he too is very quite. ... Crude oil?s rally Monday recovered quite a bit of the reaction down from last week?s highs. Almost any higher Tuesday would trap a lot of shorts, suggesting a big rally. The rally probably can?t extend without more news like that from Iran, which triggered Monday?s pop. I thank you Firozali A.Mulla DBA

Stephenson Billings
Stephenson Billings

If we didn't have all these layers of regulations in the first place, fraud like this wouldn't happen. When will democrats realize that we cannot survive with TARP-like socialistic bailouts and government micromanaging? 

shane sealy
shane sealy

It's amazing that these libertarian types can still quack this kind of stuff out in the face of the wholesale capitalist carpet bombing of the world economy. 

We agree on one thing, though, regulation isn't going to do us any good. The problem is, with or without regulation, the ruling class will continue its undefeated streak.

Amanda
Amanda

 Wow, even in the face of the biggest example of runaway greed and complete lack of self regulation, you still try to argue we don't need independent governmental regulation.  They're robbing you blind and you want to let them.

Raymond Chuang
Raymond Chuang

We've had a LOT of business scandals coming out of London in the last 25 years. Are British financial rules really that bad?

christopher mahoney
christopher mahoney

Oh my! Almost as evil as high-frequency trading! And who, exactly, was defrauded?

adam_onge
adam_onge

Just Lie and Borrow. That's what LIBOR means and that's what banks do. It's their day job, except that I now have to recalibrate all my fixed-income derivative models (HJM is sooo yesterday!) if they keep manipulating that yield curve!

Gary McCray
Gary McCray

"A reeking cesspool of unprecedented corruption."

Corporate Americas Motto!

Guest
Guest

I knew it was their motto, I just didn't think it was their 'religion' as well.

Rick Fitzgerald
Rick Fitzgerald

Crime of the century? No it's not but you can bet that all of the reporting banks were involved along with regulators turning a blind eye. Do anything necessary to save the consumer confidence in the banking system is the code. Many big banks are involved in rigging the commercial bond market and that is affecting states, cities, towns, counties, school districts and any other entity offering or buying bonds. Does anyone wonder where the money comes from when we see huge salaries and bonuses? This isn't a political issue at all. It's a criminal issue. Free markets assume that everyone is honorable. Unfortunately, we can see, they are not. Peace out. 

Michaelprotects
Michaelprotects

It's not? Please do tell, what crime affected more than 2-4 quadrillion dollars?

Unless you're referring to the Nazi state, which was more a war than a crime, albeit an evil, wicked war, Libor has nom rivals in fraud or overall affect.

Guest
Guest

"Crime of the century" was used because it would mean that every transaction that was made under their watch, resulted in some overcharging of the customers, while they skimmed the difference. That means every loan holder under their watch (amongst a web of banks) is paying more for their loans than they should have, costs went up when such costs didn't represent true cost and value. It's very serious.

GilmoreChristina
GilmoreChristina

my roomate's step-sister makes $76 an hour on the laptop. She has been fired from work for 6 months but last month her paycheck was $20699 just working on the laptop for a few hours. Go to this web site and read more CAshLazy.com

Jason Schell
Jason Schell

"Unfortunately, the price of that increased regulation, in whatever form it takes, will be borne by all of us."

Even more unfortunate is the fact that the price of not regulating these institutions has already been borne by all of us.

Firozali A.Mulla
Firozali A.Mulla

Tell me a thing. What if there is huge hole in this. And it is Politicians have been virtually "useless" so far at getting to the truth behind the banking scandal, one of the MPs responsible for investigating the affair has admitted.Andrea Leadsom, whose forensic questioning of the former chief executive of Barclays, Bob Diamond, led to his only uncomfortable moments during last week's cross-examination by the Commons Treasury Select Committee, said: "I don't think we felt we did a fantastic job. It's a fair criticism to say, 'You guys were useless'."We had great weaknesses in that we didn't have email trails. We didn't have recordings of the morning meetings where you could point to what had been said. All we really had were the regulators' reports, what we'd seen in the media."Her frank remarks, in an interview with The Independent, will raise doubts about whether the larger parliamentary inquiry being set up to investigate the banking scandal will be able to uncover the whole truth. David Cameron has rejected Labour's calls for a judge-led inquiry, arguing that it would take too long. Several of the MPs who questioned Mr Diamond last week are now considering calling him back for a second bout because they are dissatisfied with his answers.Paul Tucker, the Deputy Governor of the Bank of England, will be questioned by the same committee today about the now-infamous telephone call he had with Mr Diamond at the height of the banking crisis in 2008. Any clash between his evidence and Mr Diamond's will add to the pressure for the former Barclays head to be recalled.One of the committee members, Pat McFadden, who was a business minister under Labour, said: "I can see that happening [Mr Diamond being recalled] after we have talked to other witnesses. There were some inconsistencies in what he told us. We'll ask Tucker if his version of the phone call tallies with Bob Diamond's." been virtually "useless"(USELESS) so far at getting to the truth behind the banking scandal, one of the MPs responsible for investigating the affair has admitted.Andrea Leadsom, whose forensic questioning of the former chief executive of Barclays, Bob Diamond, led to his only uncomfortable moments during last week's cross-examination by the Commons Treasury Select Committee, said: "I don't think we felt we did a fantastic job. It's a fair criticism to say, 'You guys were useless'.

"We had great weaknesses in that we didn't have email trails. We didn't have recordings of the morning meetings where you could point to what had been said. All we really had were the regulators' reports, what we'd seen in the media."Her frank remarks, in an interview with The Independent, will raise doubts about whether the larger parliamentary inquiry being set up to investigate the banking scandal will be able to uncover the whole truth. David Cameron has rejected Labour's calls for a judge-led inquiry, arguing that it would take too long. Several of the MPs who questioned Mr Diamond last week are now considering calling him back for a second bout because they are dissatisfied with his answers.Paul Tucker, the Deputy Governor of the Bank of England, will be questioned by the same committee today about the now-infamous telephone call he had with Mr Diamond at the height of the banking crisis in 2008. Any clash between his evidence and Mr Diamond's will add to the pressure for the former Barclays head to be recalled.One of the committee members, Pat McFadden, who was a business minister under Labour, said: "I can see that happening [Mr Diamond being recalled] after we have talked to other witnesses. There were some inconsistencies in what he told us. We'll ask Tucker if his version of the phone call tallies with Bob Diamond's." Now you be the judge the jury and the bandidos, Come tell me how do we move? I thank you Firozali A.Mulla You see mud clinging is the game when the climbing becomes stiff and we want to live like primitive society not move-in an inch to prove Darwin may have been right after all.There you have it, the subject phrase stops me here, as I was in the audit firm and I despised this one agree with the ratios but how does that help us in creating employment the one huge problem we have . Without employments what is the point in having oil . May be even the coal could help but we need machinery for that and that too I have said are obsolete. We have one chance to keep oil at the level it is and the employment as is. Let the bank look at the cash flows again and then tell us the truth where they have the cash. We are then able to think, I said able to there is no guarantee than bank have done the good home work as I see the Barclays having the header never seen before. Is that really the bank we have, surprises all. . To be very honest the HUGE 5 we had (I include the auditors as well as they are the ones who use the green, blue, blue, red, black tick to say, "We have obtained all the necessary information that was availed to us and we are satisfied subject to.. More promises, more promise.( But then I do not blame the leaders) No I am not saying no one is doing something but there is nothing visible would be the right phrase. European leaders had hailed a June 28-29 EU summit as a breakthrough, promising fresh capital for Spain's struggling banks, a European bank union to keep the lenders in line and making it easier for the bloc's new bailout fund to help states in trouble. Investor sentiment in Asia and Europe was also dented by Friday's weak US jobs data that raised fresh concerns about the world's biggest economy. LONDON: European shares sank on Monday; Spanish bond yields spiked to danger levels above 7.0 per cent and the euro languished at a two-year low point in volatile deals before a key Eurozone finance meeting. Madrid's benchmark IBEX 35 index of leading shares tumbled 1.71 per cent to 6,623.90 points and Rome's FTSE Mib shed 0.82 per cent to 13,622.29, as investors fretted over fresh turmoil for Italian and Spanish bonds. London's FTSE 100 index meanwhile slid 0.38 per cent to 5,641.10 points in morning trade, Frankfurt's DAX 30 shed 0.21 per cent to 6,396.76 points and in Paris the CAC 40 lost 0.57 per cent to 3,150.84. Later on Monday, at 1600 GMT, Eurozone finance ministers meet under pressure to push ahead quickly with measures agreed last month to tackle the region's sovereign debt crisis, as market sentiment turns increasingly negative. Investors remain highly anxious that the Eurozone debt crisis, which has already sunk Ireland, Greece and Portugal, could spread to Spain and Italy. In a gloomy omen, the price Spain must pay to borrow for 10 years rose sharply to 7.026 per cent on Monday, from 6.912 per cent late on Friday. And the European single currency dived to $1.2251 in earlier Asian trade, hitting the lowest point since July 1, 2010. It stood at $1.2281. "Eurozone finance ministers meet in Brussels, ostensibly to build on the decisions announced at the summit two weeks ago," said IG Index analyst Chris Beauchamp. "As if to underline the urgency of their discussions, yields for Spanish and Italian bonds are on the march again, although this latest meeting is likely to end with a statement of intent but little else." But after an initially euphoric response, investors have switched tack, pushing Spanish long-term borrowing costs back up to the kind of sky-high rate which forced Greece, Ireland and Portugal into massive EU-IMF bailout deals. "Ministers will meet today in Brussels and high on the agenda will be clarifying in some degree the details of what was agreed at the EU leaders' summit at the end of June," said economist Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ in London. With outlook who would want to save? I have no idea what exactly has transpired in the meetings but the leaders seem to agree on one thing, ?We must get out of the rut or we will have bigger problem later. Surprisingly Obama had mentioned ?We have to have better ties when German leader went to America but he too is very quite. ... Crude oil?s rally Monday recovered quite a bit of the reaction down from last week?s highs. Almost any higher Tuesday would trap a lot of shorts, suggesting a big rally. The rally probably can?t extend without more news like that from Iran, which triggered Monday?s pop. I thank you Firozali A.Mulla DBA

Undrkva Brtha
Undrkva Brtha

Mr C Kidwell:

Hardly a 'free market' when the nation's last PM was heavily involved in yanking the rug from beneath UKonian's feet.

The irony is that this will most likely go unpunished with history books barely mentioning the world's greatest - and filthiest - thieves  - USA's and UK's elected politicians (the UK royal family were good thieves 50-70 yrs ago, but no more since there are no colonies for free resources/labour)

Besides, you cannot have a 'free' anything in a class-bound society such as the UK. Abolish princely titles, let the 'royals' work for their living, and let the 'lords' give back what their ancestors stole from laymen over the last few hundred years.

Let the UK be a proper free nation, democratic and secular - and then perhaps we can hope for a 'free' market.

GilmoreChristina
GilmoreChristina

my  neighbor's mother makes $75/hr on the laptop. She has been out of a job for 7 months but last month her income was $18300 just working on the laptop for a few hours. Here's the site to read more

GilmoreChristina
GilmoreChristina

my best friend's sister makes $68/hour on the computer. She has been out of work for 7 months but last month her paycheck was $20732 just working on the computer for a few hours. Read more on this site CAshLazy.com

GilmoreChristina
GilmoreChristina

my roomate's step-sister makes $76 an hour on the laptop. She has been fired from work for 6 months but last month her paycheck was $20699 just working on the laptop for a few hours. Go to this web site and read more CAshLazy.com

GilmoreChristina
GilmoreChristina

my best friend's half-sister makes $68/hour on the laptop. She has been out of work for 9 months but last month her paycheck was $16789 just working on the laptop for a few hours. Go to this web site and read more CAshLazy.com