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And Now The Fed Gets Dragged Into LiEborgate
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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Dear Santa Clause,
I wanted to let you know that the FED and BOE have been very naughty this decade. I really wish that you would speak to them so that they can go back to being good little boys and girls like they were before. If they don't listen, please leave coal in their stockings.
On second thought, What's the price of coal going for these days? Maybe you should just leave switches (unless lumber has increasing value as well).
Wait, just leave them Greek bonds!
Thank you!
Still believing,
Pollyanna
bank of england headed by a goldman firefighter, liquidator and killer.
nice.
seems like chaos but text book rothschild hegelian plan.
inthemix,... are those black helicopters and men with earpieces i see coming up your driveway?.. just sayin
I fucking hope so mate.
You will see me on the teevee the morrow morning if it is.
Hang on, knock on the door mate, give me five.
Our Fed and our banks involved ! Shirley not.
Oh crap, more zombie alerts:
http://www.foxnews.com/us/2012/07/03/high-on-bath-salts-police-say-suspe...
http://www.nydailynews.com/news/world/chinese-zombie-attack-drunk-chines...
Many might be surprised when they say things like 'id kick that zombies ass' when they find out they have the strength of 10 men and don't feel pain.
Turned out the zombie in Miami was high on "pot" (lol). He must have just had the munchies, man.
If too many banks, banksters, and central banks have blood on their hands, will anybody really investigate the crime and find who's really wielding the knife? NO.
The banks obligingly buy the sovereign debt while the sovereigns bail out the banks keeping the ponzi scheme going. The bondholders are the only ones that can apply pressure for change but the bondholders ARE the banks and why in the world would they put their own feet to the fire? The ponzi continues....
The endgame is here. The bankers are going for the jugular. By the looks of it, they're going for each others jugulars.
Markets implode upwards because there's nowhere left to hide. Hyperinflation is next when governments all around are forcing to print into oblivion.
We've passed the rubicon.
Where's "Old Hickory" when you need him?
"We won't monetize the debt" - Ben Bernanke to Congress.
I still see that motherfucker walking around.
And TBH, the problem isn't just really the entire Federal Reserve......it's the NEW YORK Federal Reserve. That seems to be the place where all of the greedy cocksuckers are coming out of.
Who they think is really gonna believe that our Federal Reserve would manipulate interest rates?
"the interest rate complex for up to $500 trillion notional"
Come on, mommy! We boys are just playing a little bit...
Confounded good luck ol' chap---glad the Queen's 60th anniversary got in just before the Libor scandal. Would have diluted the pomp and cerimony of a declining empire here and in the Colonies
Not so subtle irony that GS tries to take over the BOE on July 4th.
Anybody want to venture a guess at how many foreclosures there would have been if LIBOR had risen to a true market level?
We might actually be having a real recovery by now.
or how many there will be when it does?
I still think that the curtain hiding the Wizard will eventually be pulled all the way open. Then the Wizard is going to pull out a machine gun, kill Toto, and say "who's next?". Get ready! You guys know what I mean.
Gaming interest rates is just another form of Central Planning. Everything is planned.
They plan, you pay.
We don't need to play anymore.
Silver Bomb July 13th! Take down the ponzi!
I want to join in, but please explain to me how does it work?
We exchange our fiat for physical Silver and lets say we buy all the available silver that day and then what happens?
Otherwise Im lead to believe that, there are people who bought shit load of Silver around 40$ and are now trying to off load.
Thank you in advance.
If what you ask is that people will sell into the up move, sure, some will. But people always buy when the price moves up, not down. So if we do get the price moving up, not that we would (due to paper manipulation) people would not sell into the rally, they would buy.
But the price action matters not. What matters is that we move bullion, and as much as we can, so to put a physical squeeze on delivery.
Go after rounds, dimes, bars, whatever.....just -
BUY SILVER!
You did'nt asnwer my question:
We exchange our fiat for physical Silver and lets say we buy all the available silver that day and then what happens?
Are you familiar with supply/demand?
If there is no supply, price rises. If demand strengthens, price rises again. Price would continue to rise into a feedback loop until it could be 5 to 10 times higher.
All while JPM gets stoppe dout of their shorts, forcing them to deliver. But they are naked shorting silver, so they have nothing to deliver, and since we took the bullion off of the shelves, they would not be able to deliver, essentially bankrupting their trading desk.
It is my understanding that their net position is approaching flat now, with "spec shorts" having taken up the short contracts. The event you are attempting to start may happen anyways.
Or, if the hideous thought I had the other day turns out to be true, then the Fed has taken up a direct short position in the silver market by hiding in the Small Speculator category, just like they did with treasuries and the "household" category. If that is the case, we can get ready for some major craziness with the banks, while printed money ensures that paper silver doesn't appreciate until something breaks.
Rally Warning Confirmed...
As mentioned earlier, further equity strength and USDX weakness expected this year according to my analysis.
http://www.zerohedge.com/news/2012-12-24/market-analysis
"I don't have reasons. I have instincts!" --Montagu Norman (old time BOE guy)
One question: if it is now crystal clear that the masters of the universe are really satan's spawn, why has gold not shot up $500 today? What will it take to wake up Johnny Lunchbucket to finally get it that his trusted local banker is really a wanker who would stop at nothing because he has sold his soul to GS? I swear I can hear K. Marx rolling in his grave, murmering "I told you! Got Verdamit! I told you!!!! "
Jonny Lunchbucket can't afford gold at $1600 oz. He sure as fuck can't afford it at $2100.
So don't count on all the commoners waking up and clamoring for gold. They've pawned what little they did have of it off for pennies on the dollar to fill up on gas.
Move the military into stop GS at this point. It is apparent to everybody they are the terrorists of that are attacking the world and murdering millions. Not to mention about to physically attack US soil.
Hey this has to be the opportunity of a lifetime for certain politicians.
Elect me. I'll do it.
Is it just me or am I just oversensitive to the WWII shows being broadcast in the US touting all the benefits of Rosie the Riviter and her great contributions to the US economy? Even Meryl Streep is in on it.
God help us one and all.
it would not matter a whit if congress started going through bernankula's laundry bag - there isn't a remote chance of an investigation, indictment, or conviction unless some token slug got thrown under the bus for publicity....
I'm taking the 5th on this one. Ya gotta love AAPL resilience? lot's of corporate lending, off those cheap fed rates. it takes 2 to tango!
Corps. borrow cheap, pay dividends to prop stock prices. Mini Banking, at it's best. Just like old mining towns, with company currency.
Imagine AAPL @ 100B cash reserves, lending @ 10x1? That is (1) T of leverage! Thats 1/3rd of southern Europes total debt!
Un- subordinated free flowing corporate (AAA) paper! That carries inherent risk,as the paper is not subject to (sovereign note) laws.
Corps are hoarding cash, and should be! They are essentially charging consumers to do business with them! Playing the middle- man if you will.
Quick, where are the AAPL corporate bonds...
Smart thinking magpie!
Stop blaming the poor Bankers, who are only doing GOD"S work. Everyone knows that this is all the fault of the Teacher's Unions in Wisconsin and the 'overpaid' municipal empoyees in Stockton, California!
JP Morgan Treated Its Retail Investors as Stuffees, Accused of Lying in Marketing MaterialsIt appears that, to the extent Jamie Dimon’s “fortress balance sheet” claims are valid, some of strength results from taking liberties with customers in ways that even other big financial firms shun.
One long standing bad idea on Wall Street has been to have a retail brokerage operation along with in-house mutual funds. The business model always assumes that the retail brokers will happily sell lots of the firm’s funds to their customers. That’s usually a bad assumption. The internal funds seldom perform better than the products sold by other players. And the most successful brokers (the ones who have clients with large portfolios, who typically trade stocks) often are effectively independent businessmen under a big firm umbrella. If they were to leave the firm, they’s take most of their accounts with them. That puts them in a position to ignore firm pressures and bribes to put their client into so-so or bad products. That means it falls to the middling and newbie brokers to take up the slack. And like it or not, there are only two outcomes possible: either the brokers treat their clients to a greater or lesser degree as stuffees, or the funds languish. And since mutual fund profitability is correlated with the size of the fund, the bank has strong incentives to ride the brokers to push their product.
This has been a recognized conflict of interest for decades (www.nakedcapitalism.com)
So Jaimie, what are the REAL losses now?
Bank forecasts futile now all trust has gone, says analyst Banks have blown so much trust that there is no point crunching the numbers on them, a leading City analyst has declared in the wake of the Barclays Libor scandalSandy Chen, bank analyst at Cenkos Securities, said it was pointless revising forecasts until Barclays came clean over what had gone on.
“Analysts spend 99pc of their time crunching numbers, but underneath the complicated edifice of earnings forecasts lies a basic foundation of trust,” he said.
“In essence, the price movements in markets track the flow of conversation around one basic question – 'Do I trust them and their promised returns?’ Without the trust, nothing stands.”
Mr Chen said revelations that Barclays chief executive Bob Diamond had held talks in 2008 with the Bank of England over Libor simply clouded the issue further.
“The trust has been breached. Until the banks clear their names, we expect the markets for their shares and bonds will remain dysfunctional,” he said. “Without full management clarity, transparency and responsibility... we think forecast revisions are futile.” (www.telegraph.co.uk)
Get over it, everything in this world is rigged.
Nope. It is time for it all to come tumbling down, have REAL trials, bring out the guillotines and start again.
I thought the urim and thummim were being consulted. I had no idea these guys were doing it on their own.
THE EMPIRE (THE CITY & WALL STREET) has Afghanistan and the Opium trade, so everything will be fine! You all saw SCARFACE, right?
To find out what the worlds biggest lying bastard said to some of the other lying bastards whilst being lied to by aldrige prior who was also a compulsive liar of total fuck turd proportions.
Tune into Zero Hedge....
Interesting, they will just pull the National Security card out. Its rigged, but its for your own good. ...Right
how about that?
http://www.youtube.com/watch?v=P84OKTUx6LY
The capital markets as a whole are rigged, manipulated and dead. All assets are manipulated, there is zero free market, the price finding process is a joke, but not for the 99% loosers. The criminal banksters and their criminal buddies in politics, federal banks and establishment finally fucked it up.
If the Fed or any central bank admits being party to manipulating rates lower, all the people who were not paid as much interest since 2007 as they should have been could sue for billions that governments and banks cannot afford.
Look forward to whitewash not truth
Months ago I was finally able to track down the full version of the "Thrive" documentary and I sat down and watched it. I found it somewhat schitzoid; the first half was wonderful, uplifiting and full of hope and promise. Then there is that unexpected jerk to Death Valley and they appeared to go right off the rails into a long winded screed about a vast global conspiracy, etc. I figured it all sounded like old stuff I read about decades ago. Old leftovers from John Birch society rants, Lydon LaRouche, "The Money Masters", Knights Templars, a long list of evil groups who vie to control the whole thing. I found that part of the documentary hysterical and so far fetched that I just wrote it off.
Now, after the news that Taibbi has revealed in the USA and the most recent news of the stinking mass of corruption in London, I am no longer so sure about my initial thoughts about the conspiracy side. I am also reminded every single empire collapses because of one of two factors: either it is a natural disaster (which might have wiped out the ancient Mayan's - or the ancients after the great Biblical referenced "flood") or it is from corruption. I think we know what's going down now. Blood in the streets, runs on the banks and anarchy we don't need and will bring on the black helmets. I don't want to see that. But.....I am no longer sure it can be stopped.
carney has proved himself...he's done sufficient damage to canada and needs to ply his skills on a grander scale.
But to what new bubble is the UK to be exposed to ? Or is it only being set up for Euro accession via bankruptcy ?
I live here in Canada and I'm not entirely sure how Carney is to be blamed for our economy, which has evolved quite well over several decades. Think back to the glory days of Lyin Brian Mulroney who forced free down our throats as he warbled songs with Ronnie. Our economy back then was tied by the navel to all things American. Several PM's later and we are a much more diversified exporting nation with greater reach into China for example. Carney has very little to do with the large national stimulus spending going on, especially in the Greater Toronto area.....where it is much needed, decades late and is employing workers who pay taxes in very useful projects. That is the domain of the ruling party and not the bank of Canada. You can complain that he is to be credited with giving us several years of very low interest rates but on the other hand, had he not lowered them our Loonie would have skyrocketed against the US dollar and it would have creamed our exporters. So, he kept in step with the US dollar and he gets blamed because more Canadians have bought houses. That's only half the story. The other half are stupid Canadians who borrow beyond their means and go bankrupt in some future time when interest rates tick up. That's not his fault and he shouldn't get blamed for it. All in all, Canada has one of the best economies out there and is blessed in so many ways. We have problems including a massive deficit at the Provincial and municipal level and a Premier who is categorically insane. But, we are much better off than a whole bunch other places, thank you very much.
@bubbleburster.
Another loser that is brainwashed into thinking a weak dollar is good for Canada.
Fuck you,and Mark Carney.
Fools.
This meeting will be streamed live tomorrow morning (8am CST) on the House of Commons website:
http://www.parliamentlive.tv/Main/Player.aspx?meetingId=11170
This might be more exciting than a Breakfast at Wimbledon match!
This comes at a time when The Fed will be audited, n'est-ce pas?
coming soon to zH: a report that if you want to short the FED you can go long Treasuries L0L!!!
Alas, the circular firing squad is formed. The thieves will now execute each other.