LIBOR rating scandal...

[richardhutnik]

Kasz216 said:

Soleron said:
The part I disagree with is that it was intentional collusion between the listed parties. I think everyone was acting in individual self-interest, exploiting a system designed to have as little oversight as possible for that reason.

Well it depends how you want to define collusion, I don't think they were colluding with each other, but I think they had all colluded with government.

 

The collusion has a systemic turning of a blind eye to practices that then become mainstream and are bad financially.  Such practices can put too much risk into the system, and people working in a given industry doing this end up being forced to go along, lest they get fired for not meeting certain standards.  At that point, the entire industry goes off a cliff together.  And, if it is financial, it takes out entire economies and the government steps in to stop further bleeding.  Individuals in the industry, who are at least a generation removed from the events of the past, end up driving things off a cliff, and no one learns.  They also will collude with governments to, who also seem to end up having to forget the lessons of the past.