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Banking Regulators Drop Libor … Adopt New Standard

George Washington's picture




 

Given the loss of confidence in the big banks in the wake of revelations that they have been manipulating the world’s most important economic benchmark – Libor – regulators in the U.S. and UK have announced that they will abandon Libor and adopt a new standard.

In the run up to the change in standards, Bank of England chief Mervyn King had called for a benchmark based on actual transaction prices.  King’s theory was that Libor – which stands for London Inter Bank Offered Rate – is supposed to measure that interest rates which banks actually offer to loan each other money.

But regulators on both sides of the Atlantic considered such a scheme too cumbersome and “lead-footed”.

Disgraced former Barclay’s chairman Agius (who until 2 days ago was also head of the British Banker’s Association),  JP Morgan boss Dimon (a class A director of the Federal Reserve)  and others who can easily wear conflicting hats as regulators and bankers – while holding pristine moral standards and doing God’s Work – have all suggested a more realistic standard.

The new standard – announced today – would promote growth, reduce bookkeeping costs, and free regulators from having to whisper from the sidelines.  It also more accurately reflects current banking practices.

They call it Limor (pronouced “LieMore”).

Unlike it’s predecessor, Limor – Let’s Immaculately Makeup Official-sounding Rates – reflects the prevailing view of the political class and top mainstream economists that bankers are saints who can do no wrong, whose every movement and release of gas creates jobs and stimulates the economy … in the same way that  flowers spontaneously grow wherever a holy man walks.

Since these great men have only the best interests of the little people in their heart, letting them make up the appropriate Limor rate will benefit the world, as the great Invisible Hand guides the markets to their divine destiny.

Indeed, anyone calling for “objective” benchmarks or talking about so-called “justice” – like these heretics or these – are so lacking in faith that they should be excommunicated from the fiat land of milk and honey.

 

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Thu, 07/05/2012 - 12:05 | 2589154 matrix2012
matrix2012's picture

NEW TRICKS BY THE SAME BANKSTERS !!!

Thu, 07/05/2012 - 10:28 | 2588687 ATG
ATG's picture

GW, how about LEMUR,

an endemic clade of strepsirrhine primates?

EQ, EUD, PM's, TNX all headed South despite rate cuts. (for the rest of the summer?). We'll know more toward the close today...

 6:10 AM - 5 Jul 12 via web · Details

http://richcash8tradeblog.blogspot.com/

Thu, 07/05/2012 - 10:14 | 2588608 AE911Truth
AE911Truth's picture

The LIBOR crimes, as big as they are, pale in comparison to the FED Interest Rate Swap manipulation crimes, in their misguided attempt to preserve the criminal system that they are.

Thu, 07/05/2012 - 10:11 | 2588594 Stuck on Zero
Stuck on Zero's picture

Among this fossilized bunch of bankers they should be more worried about obtaining Lipitor.

 

Thu, 07/05/2012 - 08:08 | 2588254 Widowmaker
Widowmaker's picture

Go through years of Widowmaker ZH posts:

THE SYSTEM IS DRIPPING WITH FRAUD FROM TOP TO BOTTOM, UTTERLY THROUGHOUT!

You ZH fucks that think ANYTHING is as it seems are dead meat.  All of it is fraud, ALL OF IT.

I said recently that new money is the solution and a bunch of spineless tough-talking texters think that will never happen.

I assure you that is the exit -- the only exit.

FUCK THE POOR!

Thu, 07/05/2012 - 00:48 | 2587988 MinnesotaMD
MinnesotaMD's picture

Honestly, how many mortgages, variable interest rate contracts, etc. have been mispriced and mispaid as a result of this nonsense?

MSM will bury this quickly. Too much to see behind the perception curtain on this one.

It is no longer a conspiracy theory when there is actually a conspiracy going on.

Thu, 07/05/2012 - 08:04 | 2588258 Widowmaker
Widowmaker's picture

All of them.

Mission accomplished; record bonuses and a taxpayer "saved" system.

"We saved the banks but lost America"  - Timothy Fuckup Geithner, 2008

Thu, 07/05/2012 - 02:13 | 2588052 Buck Johnson
Buck Johnson's picture

They have to bury it quickly because of two things.  One, if it's out there for a few more days people will be asking for a true adjustiment of interest rates on other financial instruments that are more true to the market and reality.  And they can't have that because with so many trillions out there it could easily bankrupt banks and countries in hours.  And two, people will know that the US Fed was in own this scam also.  Justt because the US SEC and te Chicago Trade  made fines doesn't mean a thing, it's obfuscation.  By making look like they are concerned and care people won't ask the questions of the Fed and American banks being involved.

Thu, 07/05/2012 - 01:30 | 2588027 The Monkey
The Monkey's picture

Cover your shorts. ECB must cut 50 basis points to get some traction, so assets are fixing to rally!

Thu, 07/05/2012 - 00:37 | 2587970 MinnesotaMD
MinnesotaMD's picture

You call any of this shit "Capitalism"? It is global fascism my friend. The political elite are picking winners, losers, and throwing in market manipulation to cover the extreme waste, corruption, and overall inefficiency. Capitalism could possibly, maybe turn this around with truly transparent open markets.

Wed, 07/04/2012 - 23:28 | 2587902 jackinrichmond
jackinrichmond's picture

if a person gains flnancial wealth from the proceeds of crime, should that wealth be confiscated upon conviction ?

Wed, 07/04/2012 - 19:36 | 2587712 caustixoid
caustixoid's picture

thanks to this video, i now understand how bankers get upset that we muppets don't appreciate all their selfless efforts on our behalf (shame on you GW):

Meet The Pyro (2m32s)

http://www.youtube.com/watch?v=WUhOnX8qt3I

Wed, 07/04/2012 - 18:39 | 2587653 Marco
Marco's picture

For all the grief Mervyn gets for printing without end, he isn't an entirely bought and paid for ... his plan to just use market rates is clearly the right one.

Wed, 07/04/2012 - 18:19 | 2587623 palmereldritch
palmereldritch's picture

Also in the running was

London Exact Measured Ultra Robbery

in honour of the rung on the primate ladder they now have to stoop to have anything believe anything coming out of The City and The Fed

http://en.wikipedia.org/wiki/File:Lemur_catta_01.jpg

Wed, 07/04/2012 - 17:56 | 2587598 janus
janus's picture

http://www.youtube.com/watch?v=-BLbJGTmKig

http://www.youtube.com/watch?v=9NDs55sn9_k&feature=related

i think it's time to add some definition to what i'm trying to say; and i mean from a cosmic/fully-orbed perspective.  the time has finally arrived.  a time in which mankind can free himself from the fetters and constraints of traditional power.  if a large enough share of humanity strives toward the better end -- the 'better end' being a renewed dignity of the individual, and a fullness of the person mediated through liberty -- then they will, for the betterment of all, secure a future worth the investment of living...for i TRULY say, GIVE ME LIBERTY OR GIVE ME DEATH!

if there were a moment that served as catalyst for my experiemnt, it would have to have been a simple conversation.  my eldest son and i were just chatting, and at one point i casually admonished him to not dare have children -- things being the way they are, and only growing worse.  i made sure he understood what i was talking about; that i wouldn't change a thing; that i love him dearly; but, conditions being what they are, it's about as improvident as it can be -- the act of procreating and all.   

and i caught myself.  not because i'd overstated the case; rather, i reckoned this is about the most cowardly thing a father can do...state plainly that the bastards are winning and sit silently defeated, not intending to do a goddam thing about it.  well, it's safe to say that janus is past all that now.  at first, i saw the undertaking as monumental -- i mean, it's an interlocking juggernaught, so complete and ubiquitious that it would necessitate radically new ways of thinking about ourselves and the world around us.  actually, these ways of thinking have been around forever...only, the bastards kept on winning due to their ability to effectively communicate and control the modes thereof.

things are different now; in a way so fundamentally new...those who would but hear/to those who would but see -- those must recognize the fact that we are slipping into an entirely new epoch...not just a new age -- the earth itself seems involved; seems like it's suffering the spasms of birth-pains...seems like they're increasing in frequency.

http://www.youtube.com/watch?v=jWkMhCLkVOg

and if you're mired in simplistic, binary thinking; thinking that it's just corporations or governments or religions or schools or families or militaries or fill in the blank.  it's a complete and all-encompassing diminunition of the human spirit.  on the one hand, we're more aware of the nefariousness of the all-present evil, and on the other it has never been so acutely wicked or opressive.  this tension is at an all time high; and something will soon give.

the reason i make myself the bad guy is becasue everyone seems to think some aspect of these horrid institutions are redeemable -- that they're good...they figure that, since they were conceived in relative goodness, there must be some good still remaining.  so, bitchez, i am the bad guy.  if all the institutions that comprise the totality of our existance are holy, then i am wicked.  if this world's power is a benevolent thing; i am the essence of evil.

time for another Bible lesson, i think

remember ole Abraham?  back in the Book of Genesis, ole abe chews the fat with a couple of angles sent from Heaven to destroy sodom and gomorrah with a punative pillaging of fire, brimstone and other bric-a-brac common to the arsenal of Merciful Vengance.  so, abe is shocked...SHOCKED, i say...at the machinations of The Almighty.  and it comes to pass that he begins to bargin with the angels, asking them if they'll spare the city if 100 good men still therein abide.  abe is the compassionate sort, so he eventually whittles this number down to 5...confident that the city housed this number at the very least.

seems it didn't...but that's another story.

the point is, when things are just congenitally flawed; when their only substance is a stew of cannibalizing pathogens; when they emit only the foul stench of rot and decay;  well, i could go on...you get the point.  

in case you don't, maybe i should layer on a parable from the NT...just to balance things out:

somewhere in galalee, Christ is teachin and doin His Thing with twelve primative ZHealots.  eventually He sets into a real hum-dinger of a cautionary tale.  need i remind you? Christ is one hell of a racantaur. something like this: so, there was this guy who owned this orchard.  and there was this steward of said orchard.  the owner would come by on occasion; you know, to inspect the operations and whatnot.  well, one day he spots a fruitless tree.  doesn't like what he sees.

'chop it down' sez The Proprietor

'have patience...let me prune it and water it around its edges.  and if after this if it beareth not fruit, i will do as you say.'

as you might have guessed, the tree fails to flourish and the hopeful steward is compeled to chop down the tree and throw it into the fire.  i don't know, maybe it's just me, but seems like The Proprietor is weary of this fruitless age.  maybe the whole system needs to be ground into mash.  i look out my window and marvel at the material progress; and then i observe the condition of mankind and i am crushed.  

some people may think i'm an anarchist...nope, far from it.  people need protection from certain other people...but, all the same, rarely if ever from their own selves.  

the internet is just amazing.  it hasn't even begun to change the world...but that time is fast approaching -- galloping even.  all parasitic institutions will inevitably be crushed by its power...and all who stand opposed to the transparancy it demands will be lit up like a blazing 4th o july sky.

the time for hope is over; the time for expecting or affecting change through the system is at an end; wake up to the reality of it all -- why the fuck should we save a giant sucubus that seeks only our lifelong submission?  fuck the ways of this world.

it's time for destruction.  must clear out the ruins before we can build.

perfect timing, too.  i'm fuckin hungry:

 http://www.youtube.com/watch?v=EzgGTTtR0kc&feature=related

"what is democracy/

it's about young men killin each other",

janus

 

Wed, 07/04/2012 - 19:10 | 2587683 blindman
blindman's picture

you can write !
etc.
but, "democracy" is a more general,
metaphysical limiter, than as alluded to
above. instrumental in killing if you
eat that soup, but just one relatively harmless
ingredient. but who looks at the label for
ingredients? not many

Wed, 07/04/2012 - 17:03 | 2587519 PeaceLover
PeaceLover's picture

Can anyone say claw-back.. some of what has been done in the name of banking is worse than murder!

OWS needs a new calling.. jail and worse for the Pretty Boys.

Some real accountability.
If you find a congressman that opposes claw-back it it just means they have the same rotten blood and need to be in the same jail.
Going to work in the fiance industry after you make laws...... same deal who  is kidding who.

 

PL

Fri, 07/06/2012 - 00:17 | 2590931 matrix2012
matrix2012's picture

"Some real accountability.

If you find a congressman that opposes claw-back it it just means they have the same rotten blood and need to be in the same jail.

Going to work in the fiance industry after you make laws...... same deal who  is kidding who."

 

a practice in the USSA known as the "REVOLVING DOORS", happen among the regulator agencies and the corporations they're overseeing that the officers (executives) may switch sides.

Thu, 07/05/2012 - 08:59 | 2588397 Signs of the end
Signs of the end's picture

Isaiah 1:6-7 ...the whole head is sick, and the whole heart faint. From the sole of the foot even unto the head there is no soundness in it; but wounds, and bruises, and putrifying sores:...

Bankers, Corporate leaders, Politicians, Military, Media, Academics, Police, Judiciary, Religious leaders - the whole body is corrupt, rotten, maggot filled whores that would sell their own mother on the street for a dime. So who on Earth will hold these men accountable???

But there is the Most High Judge who cannot be bought for money or sex, and in His time His Judgment none will escape. There is no justice in this world but it will be impossible to escape justice in the court of Jesus Christ when he separates the sheep from the goats. That day will dawn sooner or later, probably sooner now rather than later! Till then the System will prevail till the System is no more on the day that the merchants of the Earth will weep and mourn, for no man will buy their merchandise any more (Revelation 18); on the day when the Whore of international banking and commerce, BABYLON THE GREAT will be judged and burnt to the ground never to rise again. 

Believe it or not!

Fri, 07/06/2012 - 00:02 | 2590918 matrix2012
matrix2012's picture

 

The History of the House of Rottenschilds by Andrew Hitchcock

 

"The Rottenschilds have been in control of the world for a very long time, their tentacles reaching into many aspects of our daily lives, as is documented in the following timeline.  However, before you jump to the timeline, please read this invaluable introduction which will tell you who the Rottenschilds are as oppose to who they claim to be.

. . .

The most wealthy bloodline in the world bar none and the leader of the Ashkenazi J--s in the world today is the Rottenschilds family.  As you will see in the timeline, the  Rottenschilds have obtained this position through lies, manipulation and murder.  Their bloodline also extends into the Royal Families of Europe, and the following family names: ASTOR; BUNDY; COLLINS; DUPONT; FREEMAN; KENNEDY; MORGAN; OPPENHEIMER; ROCK3FELL3R; SASSOON; SCHIFF; TAFT; and VAN DUYN.

Reading Hitchcock one will realize that the Rock3fell3r family are Rottenschilds descendants through a FEMALE bloodline!!!

And how this family intermarried with it's first and second cousins to preserve the family fortune (of the 18 marriages by Mayer Amschel  Rottenschild's grandchildren, 16 were between first cousins - a practice known today as inbreeding).

 

Read the entire summarized "TWO-AND-A-HALF-CENTURY" TIMELINE here: http://bit.ly/MhkwoV

 

Or see the very terse version of above writing formatted in .ppt:  http://bit.ly/NlwRto

 

Wed, 07/04/2012 - 17:49 | 2587593 Boris Alatovkrap
Boris Alatovkrap's picture

Article is so funny, I'm only holding vodka from spraying in my nostrils. Filthy capitalists!

Thu, 07/05/2012 - 00:40 | 2587975 MinnesotaMD
MinnesotaMD's picture

Brother, they are anything but capitalists. Good luck changing any of this with non-capitalists in charge.

Wed, 07/04/2012 - 17:00 | 2587517 magpie
magpie's picture

I am absolutely unfamiliar with the materia, but might a fake libor rate count as a ground for invalidation in e.g. derivative contracts ?  

Wed, 07/04/2012 - 17:37 | 2587575 blindman
blindman's picture

omg,
this will keep the courts full way
past eternity. providing the judges get
some piece of the action. expect a qe
for this one all on its own.

Wed, 07/04/2012 - 17:49 | 2587594 magpie
magpie's picture

Yeah, even if no one has to be made whole, QE away... 

Wed, 07/04/2012 - 16:51 | 2587501 Downtoolong
Downtoolong's picture

A farce ndeed, which I find particularly scary, for the simple fact that no matter how bad I sometimes imagine the banking system might be, when I find out the truth it's always even worse.

Wed, 07/04/2012 - 16:25 | 2587459 hedgehog9999
hedgehog9999's picture

where can I get more info on the this LYMOR index?

I googled it and nothing came back....

Wed, 07/04/2012 - 20:10 | 2587734 blindman
blindman's picture

google jim crow.

Wed, 07/04/2012 - 19:03 | 2587677 knukles
knukles's picture

You Googled it.....
What, no Wikipedia entry?

Wed, 07/04/2012 - 16:09 | 2587432 blindman
blindman's picture

Ella Fitzgerald and Louis Armstrong - Summertime
http://www.youtube.com/watch?v=MIDOEsQL7lA
.

Wed, 07/04/2012 - 16:51 | 2587502 janus
janus's picture

+1

Wed, 07/04/2012 - 15:56 | 2587403 g speed
g speed's picture

There should be a court of last resort for the banker/regulator class where-in they are tried by circumstance. Having a millstone tied to their necks they are thrown into a river--if they float they are guilty of sympathy with the devil and beheaded, but if they sink and drown they are doing Gods work and will be presumed innocent.

Wed, 07/04/2012 - 15:47 | 2587381 Bansters-in-my-...
Bansters-in-my- feces's picture

Lying .thieving,cheating corrupt to the core fucking ponzi scheme.

Make the rules as you go (get caught).

Time to bring the system down yet boys and girls...????

Wed, 07/04/2012 - 15:44 | 2587371 Zero Govt
Zero Govt's picture

"...and others who can easily wear conflicting hats as regulators and bankers – while holding pristine moral standards and doing God’s Work.."

what a mouthfull of pristine-ness

...and a just little hard to swallow without choking on some/alot/most of it

Wed, 07/04/2012 - 15:56 | 2587412 Boxed Merlot
Boxed Merlot's picture

holding pristine moral standards and doing God’s Work.."...

 

So just who is the High Priest this year?  His "breastplate of righteousness" has a few more dings in it and is a bit worse for wear.  Not to mention the Urim and Thummim were hocked to the chinese to go along with the rest of their rare earth purchases.  Forget the diaspora, looks like it's back to captivity.

Wed, 07/04/2012 - 19:20 | 2587693 boogerbently
boogerbently's picture

"Given the loss of confidence in the big banks in the wake of revelations that they have been manipulating ......"

loss of confidence by who???

The morons that watch American Idol.....Bachelor....snooki ???

In the last 3 years, the major banks have kept their financial standing A TOTAL SECRET.

A standard metric in my TDAmeritrade account for banks is "Financial Strength".

The response to that inquiry is "Data not available....."

Wed, 07/04/2012 - 15:29 | 2587345 falak pema
falak pema's picture

new index!   happy whore? 

Wed, 07/04/2012 - 15:22 | 2587331 Goldilocks
Goldilocks's picture

Bullwinkle's Hat Trick- All 4 animals
http://www.youtube.com/watch?v=kRW7pITY5Cg (1:03)

~//~

The Beatles - Roll Over Beethoven
http://www.youtube.com/watch?v=e4-16zxVMw0 (2:55)

Electric Light Orchestra - Roll Over Beethoven
http://www.youtube.com/watch?v=PLNR4xfh1Qc (4:38)

Chuck Berry - Roll Over Beethoven
http://www.youtube.com/watch?v=jLD5H4uQ1xs (4:27)

Wed, 07/04/2012 - 20:48 | 2587768 WmMcK
WmMcK's picture

At risk of really dating myself --
Bullwinkle pulls Rocky out of the hat and says:
"Well, at least I'm getting closer".

Wed, 07/04/2012 - 15:15 | 2587310 cossack55
cossack55's picture

Well, George, if it is pronounced LIEmor it at least cannot be lies since they are madeup out of thin air, truth no longer exists.  Now, if the banksters could just "fix" reality.

Wed, 07/04/2012 - 15:10 | 2587297 cbxer55
cbxer55's picture

Outstanding! I enjoy a good laugh occasionally, on all of this shitfest we have been through since 2008. 

Now I get to clean up my keyboard.

Thanks a lot.  ;-)

Wed, 07/04/2012 - 14:22 | 2587203 Keith Piccirillo
Keith Piccirillo's picture

Your farce is becoming more credible, you had me there for the first few sentences.

Wed, 07/04/2012 - 21:20 | 2587784 philipat
philipat's picture

I speculate that the number of prosecutions for financial fraud is inversely proportional to the number of ex-God's workers employed as regulators and senior Government officials?

Thu, 07/05/2012 - 03:06 | 2588070 Troll Magnet
Troll Magnet's picture

Bullish!

Huh?

Oh...nevermind.

(Thinks for a moment)

BULLISH!!!

Wed, 07/04/2012 - 18:41 | 2587654 El Oregonian
El Oregonian's picture

FRYMOR  

 

Federal 

Reserve

Yanked

Making

Officials

Repay

 

Wed, 07/04/2012 - 23:55 | 2587928 CompassionateFascist
CompassionateFascist's picture

"LIMOR"? Limor. Yes, I know her. She can set my "interest" rate as high as she wants - http://seductivejewess.com/type-iii6-limor-sarah-blokman.

Do NOT follow this link or you will be banned from the site!