And Now The Fed Gets Dragged Into LiEborgate

Tyler Durden's picture

As was first reported two days ago, and confirmed today, Barclays' natural response to allegations it single-handedly manipulated the interest rate complex for up to $500 trillion notional in IR-sensitive swaps and other products (it didn't - everyone else did it too), was to drag everyone into the scandal, starting off with the Bank of England (and about to drag Whitehall into it too), and specifically the man who was next in line for governorship of the English Central Bank: Paul Tucker. What does this mean? Well, as we suggested also two days ago, now that the natural succession path at the BOE has been terminally derailed, it brings up those two other gentlemen already brought up previously as potential future heads of the BOE, both of whom just happened to work, or still do, at... Goldman Sachs:  Canada's Mark Carney or Goldman's Jim O'Neil. Granted both have denied press speculation they will replace Mervyn King, but it's not like it would be the first time a banker lied to anyone now, would it (and makes one wonder if this whole affair was not merely orchestrated by the Squid from the get go... but no, that would be a 'conspiracy theory'.) Yet the fact that Goldman is hell bent on global domination by stretching its tentacles into every monetary policy administration is no secret: it is only a matter of time before GS also runs the English CTRL-P macros. More interesting is that in addition to the BOE, Barclays today also dragged America's very own Federal Reserve into the fray.

From MarketWatch:

Barclays also said in the document that the lender believed other banks were making Libor submissions that were too low during the credit crunch. “The evidence shows that the intent was to protect Barclays from the unfounded negative perceptions by bringing Barclays Libor quotes closer to the pack but not to affect the ultimate rate,” the bank said.


Barclays also cited subsequent research by the New York Federal Reserve staff members that, according to the lender, concluded that banks’ Libor quotes were systematically below their borrowing rates by 39 basis points after the Lehman bankruptcy. “Barclays own submissions for tenors of 1 month to 1 year Libor were higher than actual Barclays trades on 97% of the occasions when Barclays had actual trades during the financial crisis,” the lender said.

Translating the bolded: the Fed knew all along that Barclays self-reported levels were impossible. And did nothing. Which of course was not an issue until 2 days ago. Now that heads are rolling, it is.

So we wonder: will the captured and corrupt congressional critters even pretend to have the guts to escalate LiEborgate on US soil, where the real bodies are buried, or will everyone continue to tiptoe around the issue, hoping it just blows off on its own? If the latter, look for many new and exciting $0.99 apps to hit the iTunes store in the next 12-24 hours. After all must keep the fat, lazy, easily distracted muppets, occupied with cool retina displays and even cooler games where stuff happens fast without draining the battery for hours.

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hedgeless_horseman's picture



My hog and beef production is not rigged.

Your hog and beef production may not be rigged, because these days it is hard to fool the scale.*  However, hog and beef futures, sales, processing, distribution, and retailing are all rigged to high heaven.

Disintermediation, bitchezzz!!!


*In ye olde tymes, fooling the scale is exactly how hog and beef production was rigged.

Marginal Call's picture

I don't know.  All them cows that get fed distillar's grain, that seems kind of rigged to me. 

silverserfer's picture

Silver would be a good exchange for you.

strangeglove's picture

Stuff them with
Tungstun Bitchez then serve!

whatsinaname's picture

Reminds me of a Design & Manufacturing conference I attended in Chicago recently - entry fee 55 bucks. Right across the hallway was a Morningstar Investment conference - entry fee 975 bucks. Enough said.

Bunga Bunga's picture

Burgers are rigged too. Think of the Pink stuff.

Lofty's picture

Don't see too many old sailing vessels around these days

Miss Expectations's picture

My brother-in-law was an All American soccer player.  The olympic team selection is rigged, too.

Stoploss's picture

FX rates most definitely rigged.

Storms on Jupiter is all i got on no rigging.


Im not even sure of that either..

twocents's picture

Procrastinators of the world unite! ...... Later

t_kAyk's picture

Dyslexic's of the world, untie!!

runlevel's picture

I just keep reminding myself that the italians got their day with mussolini. Someday we will too. Bernankini? 

Stuart's picture

nothing is going to come from this.   C'mon, we all know they're all (including central bank execs) on the phone as we speak/type trying to figure out a way to deep six this whole issue so it's forgotten about in the press's 12 second memory span. 

The Gooch's picture

Hello General, It's Bennie...

ZeroAvatar's picture

That's right, just lay low, like Conzine.  It'll all blow over!

Imminent Collapse's picture

"Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin slitting throats."  - H.L. Mencken

t_kAyk's picture

Mencken has some good ones... 

"All men are frauds. The only difference between them is that some admit it. I myself deny it. "

"A good politician is quite as unthinkable as an honest burglar."

"All government, of course, is against liberty."

The trend is your friend's picture

It is so Surreal.  How does one stop the squid when it can regrow it's limbs

Troll Magnet's picture

Bullshit!  I don't believe it!  I refuse to believe it!  Ben Bernanke is a good man!  There's no way he'll do something like this.  I mean...He went to Princeton, didn't he?  

EscapeKey's picture

Well, that's the thing.

Head over to student-occupied Reddit, and you'll find tons of Keynesian economics students who, though they willingly bash bankers and their complete lack of morals, but at the same time will defend the BLS, the CFTC, and the Fed to the bitter end.

Completely ignoring that it's the same people in those institutions. But somehow, the second someone goes to the Fed they are beyond criticism.

Carl Spackler's picture

The song remains the same...Power corrupts. Absolute power corrupts absolutely.

Those Princeton Keynesian phonies just want to be associated with the absolute power, so they pick a side in the game. Keynesian philosophy relies upon [corrupt] central control to function.

The better alternative to corruption is broader decentralization of power and structures. 

The problem, however, is that the muppets and American Idol junkies of the world cannot act responsibly, so they want to be controlled by a centralized and absolute power center. (Maybe, it is better to declare "sink or swim" time and go from that point forward.)

Anyway, such is where we are at today.

CPL's picture

Does anyone think the situation would have been different if he attended Harvard?  lol!

Troll Magnet's picture

Yes!  If he went to Harvard, he would be even honester than he already is.  Like Larry Summers, Obama and all of them good guys.

CPL's picture


Now a verb.  You should copyright that and sell it like it bacon wrapped steak.  Politicians seeking reelection would owe you a buck every lie that falls from their lips.  You would be the first billionaire in under a week and I'm being conservative with the billion.



EscapeKey's picture

Well, perhaps he'd then have studied economics textbooks the result of Carnegie-funded think tanks rather than Rockefeller-funded think tanks.

CPL's picture

Either or a half a dozen of the same.


Princeton, Harvard, kid babysitting services and employment deferral services.

knukles's picture

But he never worked for Goldman....


Lost Wages's picture

"Goldman Sachs rules the world."

-Alessio Rastani

THX 1178's picture

I think he got his stuff from Kiyosaki.

Unprepared's picture

That clip would definitely feature in the "Why the fiat system collapsed?" documentary.

jomama's picture

oh what a tangled web we weave when first we practise to deceive

WALLST8MY8BALL's picture

Deerhoof - "I Did Crimes for you"

This is a stick-up! This is a stick-up!
Smash the windows! Smash the windows!
The people are wrong!
The leader is strong!
Guerilla surrender
I did crimes for you they're coming true
I did crimes for you they're coming true
I did crimes for you you're coming too
Smash the windows! Smash the windows!
People leader guerilla! People leader guerilla!
I did crimes for you they're coming true
I did crimes for you they're coming true
I did crimes for you you're coming too
This was a stick-up! This was a stick-up!


EscapeKey's picture

Yeah no fucking shit. They are all controlled by the BIS, who in turn, is controlled by the central banks.

So of course they they have "well-established relationships" with other central banks. They are one and the same.

samsara's picture


The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences."                                                                                                                                               

"The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank . . . sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."                                    -- Carroll Quigley, "Tragedy and Hope", 1966, pg 324





EscapeKey's picture

One of the best books I ever read.

Also, I can recommend "Diamonds, Gold, and War", which largely concurs with Quigley, in the sense that Rhodes was definitely into setting up his secret society. Also an eye opener; I did not know that the British were the inventors of concentration camps (2nd Boer war). But hey, it was only bad when Hitler did it.

newworldorder's picture

RE: Samsara:

 Quietly, ever so quietly - Quigley's words have come to pass as in the US , most of the population does not know much if anything about the BIS, Central Banks, various trade agreements, Euro zone, History, Politics or Geography.

 They know even less about the invented rich uncle from Mars called the FED with its endless supply of created money, available to bail out any private or government entity in need on any continent.

 The vast fortunes of the late 19th and most of the 20th centuries have been passed down to families, foundations, trusts, think tanks and academic institutions. The new world order ideas of British and American robber barrons are embedded in the thinking of the elite and financially powerful sitting at the controls of power in political, academic and financial circles.

 Good luck to us all.

Widowmaker's picture

The Fed is a fraud circle-jerk in a box.  Manipulate and masterbate.

The definition of unsound money is in elitist hands.

Corporations before people - unsustainable.



eclectic syncretist's picture

The Fed is a creation of the government designed to end run the constitution.

fuu's picture
We sat around the pile.
We sat and laughed.
We sat and laughed and
Waved it into the air!
And we did it just like that.
When we want something,
We don't want to pay for it.
The Gooch's picture

Comin' down the mountain!

WALLST8MY8BALL's picture

My girl, she's one too!

Itch's picture

It makes you wonder, would we have got to this point without the blogosphere? Would the FT have dared to get the ball rolling? Me thinks not. Shits' getting interesting.

moskov's picture

Does that mean US T-Bills are also being Lie-broed ?