LIBOR rating scandal...

[Kasz216]

richardhutnik said:

Kasz216 said:

kowenicki said:
this will prove to be a very large scam by many banks in many countries I feel....

been news in the UK for a week or so...

It's been in the news here too...

Thing is, the feds likely knew this was going on, and just let it go on, since it went hand and hand with most governments policy at the time.

The Feds themselves were trying to artificially lower the LIBOR.

Or actually to put it more specifically.  The regulators, the US Fed and UK government DID know, and the UK government refused to do anything about it despite the US fed pointing out the problems and suggesting fixes.

http://www.reuters.com/article/2012/07/10/us-markets-credit-barclays-idUSBRE86907120120710

Then it got let go for a while because well... like I said, it benefited the goverments goals of an artificially low LIBOR.

I was tempted to drag in some Max Keiser stuff, but the response on here is something along the lines of Beavis and Butthead type response of "Lyndon LaRouche, hehe hehe".    Can I at least bring in some Mike Taibbi?

http://www.rollingstone.com/politics/blogs/taibblog/why-is-nobody-freaking-out-about-the-libor-banking-scandal-20120703

Hm, I'm not sure what you mean about Lyndon LaRouche.   I find Lyndon LaRouche generally creepy and largely without merit and most of his followers feel more like Super Church Evangelists then a follower of a political movement.

Outside that... yeah it's a big deal for sure.

Bob Diamond is essentially being used as a scapegoat for something the goverment was likely activly involved in.

I imagine not many people are freaking out about here though because so far... our government seems pretty in the clear.

The worst that can be said so far is that the Fed didn't blow the whistle on the UK when they kept rebuffing the Feds calls for better LIBOR changes.

What's interseting is wondering what kind of effect this had on the Global financial crisis to begin with... since the Fed noticed it due to Bear Stearns.

 

My guess is, things get cut off far from the top of the chain... maybe even stopping at Diamond and other bank heads.