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Is The Bank Of England About To Be Dragged Into Lie-borgate, And Which US Bank Is Next

Tyler Durden's picture





 

While the Lieborgate scandal gathers steam not so much because of people's comprehension of just what is at stake here (nothing less than the fair value of $350 trillion in interest-rate sensitive products as explained in February), but simply courtesy of several very vivid emails which mention expensive bottles of champagne, once again proving that when it comes to interacting with the outside world, banks see nothing but rows of clueless muppets until caught red-handed (at which point they use big words, and speak confidently), the BBC's Robert Peston brings an unexpected actor into the fray: the English Central Bank and specifically Paul Tucker, the man who, unless Goldman's-cum-Canada's Mark Carney or Goldman's Jim O'Neill step up, will replace Mervyn King as head of the BOE.

From the BBC:

In making false submissions about their borrowing costs, managers at Barclays believed they were operating under an instruction from Paul Tucker, deputy governor of the Bank of England, I have learned.

 

This belief was fostered after a telephone conversation in the autumn of 2008 between Mr Tucker and Bob Diamond, who at the time ran Barclays' investment bank, Barclays Capital, and is today chief executive of Barclays.

 

The heart of the matter is that in 2008, at the height of the credit crunch, the perception of banks' financial strength was linked to how much they had to pay to borrow. Barclays managers were very worried that the appearance of the bank paying more to borrow than other banks was damaging confidence in its health.

 

So Barclays so-called "submitters", the managers who gave borrowing data to the British Bankers Association's Libor-setting committees, consistently told these committees that Barclays was paying a lower interest rate to borrow than was actually the case.

 

And what is striking is that after their conversation took place, senior Barclays' management on October 29 2008 gave an explicit instruction to reduce Libor submissions.

We hope it comes as no surprise to anyone that central banks, already known to sell Treasury puts in order to game interest rates on global benchmark securities, would go so far as to advise BBA member (which as noted last week was shocked to find that epic manipulation was going on here) banks to do all in their power to lie and cheat to the market in order to avoid the perception of reality.

Yet here is the punchline in Peston's piece:

What is striking is that even the artificially suppressed quotes for Barclays' borrowing costs provided to the BBA committee were higher than other banks' quotes.

Which conveniently brings us once again to our piece from January 22, 2009 when the market was crashing every single day, when the world's central banks would do anything to halt the collapse in risk and asset prices, up to an including telling their host banks to lie about funding conditions, before the real QE1 was announced back in the middle of March, in which we made just this speculation.

Everyone knows there is something very screwy about LIBOR, with opinion ranging from it's way too high to the opposite. We also have been quite vocal in our opinion of the TED Spread but that's irrelevant for the time being. Lately we have been looking at the most recent BBA data for the 3 month LIBOR submission by bank and while the average is 1.122%, the range is quite wide: 1.04% at the tight end to 1.204% at the wide. What confuses us is that the banks that submitted the lowest rates are the ones that have the most governmental independence, notably BofA and JPM, while the other end of the range is represented by pseudo nationalized banks such as RBS, in which the UK government recently acquired a 70% stake, and UBS, which had all of its bad assets swept by the Swiss National Bank in exchange for a loan (read more about the Swiss model here).

The implication is that with more governmental involvement or even virtual nationalization, the cost to lend to another bank creeps higher, when compared to entities such as BofA and JPM which still, at least theoretically, carry all their bad assets on their books. This intuitively is very confusing as the cheapest LIBOR should come from the nationalized entities, that have a full governmental backstop.

 

So while LIBOR's moves in itself have been very puzzling lately, the components of LIBOR and their relative values provide an additional layer to the puzzle.

Three and a half years later the puzzle is no more: it was all one big epic fraud, pardon, no fraud, as the CFTC and SEC settlements never admitted or denied fraud. Let's just call it benign market manipulation of a $350 trillion market.

But what the table above brings up are some curious observations: note the banks that in the middle of January were telegraphing to the world they were the healthiest via the one metric that was actually still relevant: 3 Month USD funding costs.

We already know that Barclays has been exposed to be manipulating Libor on an epic scale. And even with all this, it still could manage to only be in the third best quartile? If they were manipulating their Libor submissions they sure sucked at it. Which of course is why even the BOE got involved.

However, it begs the question: what about the Libor submissions of the three then "healthiest" banks: Bank of America, JP Morgan and Deutsche Bank. If Barclays was manipulating and gaming Lie-bor, only to fall even below the median submission, does this mean that these three banks were all furiously coming up with totally meaningless numbers? And how long until the SEC comes up with a US scapegoat bank to mimic the FSA's bold action on Barclays?

If, and this is a big if, the SEC does for once do something proactive in its illustrious career of corrupt, incompetent complacency and co-option, not to mention pornoholic hypnosis, the next and final question becomes: will it be Bank of America, or JP Morgan... and just how will the market react to the knowledge that two of the world's biggest non-nationalized banks participated in what as many have been warning for years, the biggest market manipulation fraud in history.

Finally, if the BOE ends up getting crucified for Barclays' stunning email disclosure, will the Fed, which certainly had a role to play in all of this, be once again left untouched?

 


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Sun, 07/01/2012 - 11:53 | Link to Comment LULZBank
LULZBank's picture

Bollinger-Gate Bitchezz!!!

This is how Daddys roll...

Sun, 07/01/2012 - 12:14 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

This is all very bullish.  Risk on, bitchez!

 

/sarc

Sun, 07/01/2012 - 12:26 | Link to Comment veyron
veyron's picture

I for one am disappointed that Taibbi doesnt show up in the Zero Hedge Reads column ...

Sun, 07/01/2012 - 12:38 | Link to Comment LULZBank
LULZBank's picture

Forget Taibbi, wait till Farage gets a sniff of this. He will be so very upset. Cant wait to see his stiff rant on this.

And check this ass clown:

Bank shareholders must get stronger grip, Cable says

http://www.bbc.co.uk/news/uk-politics-18662529

He probably meant in their circle jerk sessions.

Shareholders should know also function as SEC.

Sun, 07/01/2012 - 12:51 | Link to Comment falak pema
falak pema's picture

If Farage goes indignant on this it'll be the icing on the rotten Englander cake; the prime supporter of John Bull, "we are holier than thou" Eurobashing will have to knee jerk into reverse gear and go charging like Don Quichotte into Whitehall and City shenanigans. As this is a NATIONWIDE, systemic, upper-elites cover up of financial malpratices which ARE the bread and butter of BIG BANG libertarian England. "Not like those socialistic shills, we certainly aren't! Thank you very very fukking much'...has been his patriotic stance. 'England is clean and non socialist not like corrupt and socialist technocratic Eurozone.' 

I think Mutti Merkel must be splitting her sides on this Cameron's and New Labour crony club historical caper of uber WS magnitude. Even Hank Paulson must be impressed. After Abacus, after Whale, now this new-old City tour de force!

A gold medal for the UK! 

Sun, 07/01/2012 - 15:47 | Link to Comment Umh
Umh's picture

The phrase "libertarian England" may be the funniset thing I have heard in decades.

Sun, 07/01/2012 - 23:39 | Link to Comment Harlequin001
Harlequin001's picture

'and just how will the market react to the knowledge that two of the world's biggest non-nationalized banks participated in what as many have been warning for years, the biggest market manipulation fraud in history.

Eventually it will dawn on most people that the'biggest market manipulation fraud in history' was actually the suppression of the gold price, which, if nobody is to lose any credit money, and our house prices and pensions are not to collapse in 'value' will soon be worth considerably more than a mere 350 trillion...

Mon, 07/02/2012 - 05:41 | Link to Comment falak pema
falak pema's picture

you must find Maggie funny then. Hilarious decade she ran! And New Labour prolonged it like the good little boys they were, making City the beacon of financial "liberty". 

No wonder that Abramovich and his coterie love it! What is more libertarian than a russian oligarch who got rich on asset stripping rip-off of soviet empire. Not to worry the City recycles all and sundry, white as linen, no questions asked! 

Sun, 07/01/2012 - 12:50 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Tyler's blogroll is not the be all and end all of blogrolls.

Despite Tyler's prowess for journalism, he lacks the talent to find talent.

But hey, why not let Lizzy360 write an article about how great Mark Carney is?  Or let Mike Kreiger write another boring article about bla bla.  Or have Biderman, Rosie, or Junjah tell us stocks are going to decade lows.

Sun, 07/01/2012 - 12:50 | Link to Comment ptoemmes
ptoemmes's picture


See the parallel from the muni fraud trial?

 

 http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-f...

"

In the end, though, the conviction of a few bit players seems like far too puny a punishment, given that the bid rigging exposed in Carollo involved an entrenched system that affected major bond issues in every state in the nation. You find yourself thinking, America's biggest banks ripped off the entire country, virtually every day, for more than a decade! A truly commensurate penalty would be something like televised stonings of the top 10 executives of every guilty bank, or maybe the forcible resettlement of every banker and broker in Lower Manhattan to some uninhabited Andean wasteland... anything to address the systemic nature of the crime.

No such luck. Instead of anything resembling real censure, a few young executives got spanked, while the offending banks got off with slap-on-the-wrist fines and were allowed to retain their pre-eminent positions in the municipal bond market. Last year, the two leading recipients of public bond business, clocking in with more than $35 billion in bond issues apiece, were Chase and Bank of America – who combined had just paid more than $365 million in fines for their role in the mass bid rigging. Get busted for welfare fraud even once in America, and good luck getting so much as a food stamp ever again. Get caught rigging interest rates in 50 states, and the government goes right on handing you billions of dollars in public contracts.

"

Sun, 07/01/2012 - 19:16 | Link to Comment jmcadg
jmcadg's picture

It gets better than that DoChen. I heard on BBC news tonight that RBS fired 5 traders in January for their part in the scandal.

Frstly, so why have we not heard anything until now?

But even better, at least one is suing RBS for wrongful dismissal as he claims the manipulation was known right at the top.

This one is not going away anytime soon. I want at least Diamond and Heston's heads on sticks. You can't get more arrogant than these two, oh wait a minute, Dimon and Blankfein.

Oh Bob Diamond, you lose out again to your superior peers. Hang your head in shame, you lightweight.

And still they can't get him to go as Agius takes the blame.

Sun, 07/01/2012 - 20:41 | Link to Comment Buck Johnson
Buck Johnson's picture

This is going to get bigger and bigger in Europe, because in effect they found out what everybody thought years ago.  Manipulation of the LIBOR and other entities was not only happening but encouraged.  And that email nails the BOE and if you think the US federal bank wasn't involved I have a bridge to sell you.

Sun, 07/01/2012 - 20:48 | Link to Comment philipat
philipat's picture

I agree that this is all wrong but I'm mot clear about one aspect. If the Banks were UNDER-stating borrowing costs so as to appear to be "Big and Strong", doesn;t that then mean that LIBOR was artificially low, thereby benefiting the public via artificially low mortgage rates on this occasion?

Sun, 07/01/2012 - 21:20 | Link to Comment bigwavedave
bigwavedave's picture

Until the re-rack at a higher rate. Then shit hits fan.

Mon, 07/02/2012 - 03:31 | Link to Comment Rogue Trooper
Rogue Trooper's picture

+ QE3

Upon reading this my mouthful of beer, I could not afford Bollinger, nearly wiped out my Macbook :P

Finally, material for the eventual Black Adder #5!

Stephen Fry would obviously play Sir Mervyn "King" Melchett  - Head of the Bank of England. All fiction of course!

http://www.youtube.com/watch?v=Daa8ZnxC-0Y

Sun, 07/01/2012 - 11:52 | Link to Comment Xibalba
Xibalba's picture

in NO WAY does JPM rig the metals markets on behalf of theFed.....#yaright.

Sun, 07/01/2012 - 12:20 | Link to Comment Thomas
Thomas's picture

Next time somebody calls you a "conspiracy theorist" or refers to something as "conspiracy theory", tell them, "anybody who believes that trillions of dollars can roll around the markets on a daily basis but nobody will conspire to cheat the system is a complete moron." Look them in the eyes and say, "Are you such a moron?"

Sun, 07/01/2012 - 12:38 | Link to Comment Thomas
Thomas's picture

We need a sequel: "Silence of the Bankers"

Sun, 07/01/2012 - 12:41 | Link to Comment Thomas
Thomas's picture

BTW-The bankers in the last couple of years have done more harm than all the rapists and pedophiles. You folks should be hung from the neck until dead (after a fair trial). If you happen to be an honest banker, then step up and help clean up your profession because, if you don't, you are part of the problem. You are watching innocent people getting the Sandusky Rhythmic Slapping Treatment. Fuck 'em. I cannot heap enough scorn on them. Fuck 'em. Fuck 'em. Fuck 'em.

Sun, 07/01/2012 - 11:53 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

Call the ... forget it.

Sun, 07/01/2012 - 12:16 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

They're not even there.  At home, watching movies on the Internet...

Sun, 07/01/2012 - 12:39 | Link to Comment Kayman
Kayman's picture

"Call the ... forget it."

Exactly.  As soon as everyone understands that the entire financial industry is a rigged game, the sooner it will collapse.

When the penalty for a financial crime is but a pittance of the take, and no one goes to jail, this will continue.

How do you say "Fuck You" in banker talk ?  "Trust me".

Sun, 07/01/2012 - 14:16 | Link to Comment Amish Hacker
Amish Hacker's picture

When every second counts, the SEC can be there in a matter of hours.

Sun, 07/01/2012 - 11:54 | Link to Comment Ancona
Ancona's picture

When the wheel stops, it's going to be something to see. The destruction of wealth will travel the wires like a mountain wildfire destroying everything in it's path.

Sun, 07/01/2012 - 12:15 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Yes, + 1

The problem is the timing.  Best be prepared, like, yesterday!

Sun, 07/01/2012 - 11:54 | Link to Comment cherry picker
cherry picker's picture

The AXIS of Evil is often portrayed as being Iran, Iraq and North Korea.

A few decades ago it was everything related to "commie" countries.

Now I wonder if Wall Street, Washington and the Pentagon are a part of it and England is a strong ally.  Not the people of the countries so much as they really have no say, for if they vote for one thing usually they recieve something else.  It is the few that "control" it all.

Those who control, laugh and sneer at we "sheep" in derision.  How we are so easily fooled and led by the nose.

Wait till we "sheep" start feeling the fences closing in and the grass turning to dirt and see children go hungry.  Then it will be the Ram's turn.

Sun, 07/01/2012 - 12:05 | Link to Comment SamAdams1234
SamAdams1234's picture

The axis of evil are the banks of England: following the collapse of the British Empire in the 20th century the banks simply expatriated to America. They are now working to expatriate to China, if the Chinese would only be cooperative ...

Sun, 07/01/2012 - 12:46 | Link to Comment Kayman
Kayman's picture

They weren't laughing when their severed heads fell into a wicker basket.

Humpty Dumpty is not going to be pieced together again without an ugly reset.

The "exhorbitant priviledge" as granted to all Central Banks is coming to an end.

Make the smallest footprint possible and sit back and watch the show.

Sun, 07/01/2012 - 12:58 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

...

 

"Make the smallest footprint possible and sit back and watch the show."

Very eloquent and quite correct.

+ 32219 !

Sun, 07/01/2012 - 11:55 | Link to Comment jmcadg
jmcadg's picture

So basically Bob Diamond is shit at cooking the books and his American counterparts were laughing daily at his total ineptness, as BoA and JPM are shit hot at fraud.

Don't worry Bob, I'm sure your salary makes up for your complete incompetence you twat.

Sun, 07/01/2012 - 12:35 | Link to Comment EscapeKey
EscapeKey's picture

It's also a curious defense, to say the least, considering they were manipulating Liebor much earlier than 2008.

Sun, 07/01/2012 - 11:57 | Link to Comment jmcadg
jmcadg's picture

It's one thing being laughed at by your peers, it's another being laughed at by the muppets of this world. Lol Bob.

Sun, 07/01/2012 - 14:35 | Link to Comment tenpanhandle
tenpanhandle's picture

I don't believe the muppits are laughing, at least not at these bankster types.   They are too busy laughing at some non-sensical, brain deadening, propagandistic tv shit-com or unreality show.  They are laughing at the foul comments of the likes of bill mahr (I'm looking forward to his death so I have a place to piss).  They're laughing all the way to the bank to cash their welfare check.  They're laughing all right but not at what I'm laughing at.  Actually, I'm not laughing at all.  Those tears are not from laughter. 

I don't believe we the people who are reading Zero hedge and the like are muppets. Muppets are always going to be muppets. Even when ginned up into a mob, they will still be muppets.  Beware of a mob of muppits.  In all likelyhood they will be gunning for you. 

 

Sun, 07/01/2012 - 12:00 | Link to Comment Sudden Debt
Sudden Debt's picture

mostly it's the bank not mentioned in the first shortlist that will get hammered.
so I'm missing goldman sachs and morgan stanley in that list... 2 boyscouts who would never do this but.... .....

Sun, 07/01/2012 - 12:02 | Link to Comment Heroic Couplet
Heroic Couplet's picture

Why does the SEC need all the elaborate and meaningless AAA and BBB-? It's meaningless. The banks are insolvent. They're F. Then we can disband the SEC; let them enjoy porn while unemployed.

Instead of four frivolous Republican lawsuits and challenges at the Supreme Court in 4 years (birth certificate X 3 and Obama Won), why doesn't the Supreme Court enforce Congress's money supply capability and then the Supreme Court can get rid of the Federal Reserve Act of 1913.

Sun, 07/01/2012 - 12:44 | Link to Comment veyron
veyron's picture

It allows for lip-service downgrades (they can "downgrade" a notch and say they did something, even if they didn't)

Sun, 07/01/2012 - 13:18 | Link to Comment TruthHunter
TruthHunter's picture

"Then we can disband the SEC; let them enjoy porn while unemployed."

Then we can replace the SEC with a real Occupy Wall Street...one with guns and guillotines?

Sun, 07/01/2012 - 14:19 | Link to Comment tenpanhandle
tenpanhandle's picture

Why does the SEC need all the elaborate and meaningless AAA and BBB-? It's meaningless. The banks are insolvent. They're F.

 

 

It maybe (is) pure bullshit but it is not meaningless or purposeless.   You say, and I agree, they're F.  So giving them a BBB- is still a passing grade.  It gives them some credit-bility as opposed to "FAIL". 

 

 

Sun, 07/01/2012 - 12:04 | Link to Comment I am Jobe
I am Jobe's picture

Shocking I am telling you. Time for some short ropes and tall trees.

 

Sun, 07/01/2012 - 12:07 | Link to Comment SamAdams1234
SamAdams1234's picture

Sharp swords, pikes and guillotines.

Sun, 07/01/2012 - 12:40 | Link to Comment LULZBank
LULZBank's picture

You guys have no imagination. That is too quick and easy.

Sun, 07/01/2012 - 17:44 | Link to Comment Clever Name
Clever Name's picture

A "pair of pliers and a blowtorch"?

Sun, 07/01/2012 - 19:56 | Link to Comment Jena
Jena's picture

Dozens of hemostats, scores of Bic lighters and about seven Xacto knives.  Plus about three rolls of Shrink wrap.

Sun, 07/01/2012 - 12:10 | Link to Comment Whiner
Whiner's picture

The pot of world wide bankster corruption boilith over. "Bubble, bubble. Toil and trouble. How long til the end of their bubble?" The cock roache citings are more numerous, some so oversized, they wobble brazenly out into the daylight immune, to diluted pesticides. Huge colonies breed as for decades behind the pristine mahogany walls. Down in the vaults the commingled gold seems to have diminished. Gold bugs scurry around endlessly trying to find their fellow countryman's stash. "It is not here!" "It is not here." The cockroaches snicker.

Sun, 07/01/2012 - 12:10 | Link to Comment falak pema
falak pema's picture

Champagne cocktail bunga bunga binge at 'Lie and then bore to pussy galore' Bank of England inn.  All fellow CBs and PDs CEOs more than welcome. Its open house if you let your bloated HFT oar-blade float and then gloat in ribonned glory at Henley's bloaters and blue blooded toaders boat race. Splendid fellows in chariots of fire all for days of auld lang syne. Its only a fare thee well, should all acquaintance be forgot...swing low, sweet chariot, comin' for to carry me home. 

Sun, 07/01/2012 - 12:13 | Link to Comment LULZBank
LULZBank's picture

You need to cut down on your "fine wines." They are making you horny as well.

Sun, 07/01/2012 - 12:17 | Link to Comment falak pema
falak pema's picture

its part of their paradoxical healing capability; we don't want to die both ruined and at a loss of poetic justice in body urge. Those miltarist shills call it "the surge".

Sun, 07/01/2012 - 12:27 | Link to Comment LULZBank
LULZBank's picture

The ascent to heaven must be easier when you're already high.

Sun, 07/01/2012 - 12:34 | Link to Comment falak pema
falak pema's picture

as long as it doesn't get me there via guantanamo I'm fine with unlibored wine. 

Sun, 07/01/2012 - 13:14 | Link to Comment LULZBank
LULZBank's picture

With a name like "sky climber," I would'nt entirely rule it out.

Sun, 07/01/2012 - 12:12 | Link to Comment Kina
Kina's picture

The CFTC and SEC are worried that if they acted honestly their bankster supply of new and interesting Japanese school girl sex dolls would dry up, and they would have to go back communal Wendy.

 

 

Sun, 07/01/2012 - 12:44 | Link to Comment Abner Doon
Abner Doon's picture

Should laws be violated

to uphold a president’s right to executive privilege?

 

What should be the role of criminal law

if government officials violate statutes in the name of national security?

 

How much should the government infringe on individual liberty

in the name of guarding against risks to public safety?

 


How many Americans with relatively high incomes

like physicians, lawyers, financial professionals

and middle to upper corporate management

are likely to encounter personal financial instability

if their incomes fall 25%?


 

 

Sun, 07/01/2012 - 12:12 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

send in the drones..............

Sun, 07/01/2012 - 12:14 | Link to Comment mark7
mark7's picture

It is already on the radar screen...the chicken armada heading towards Great Britain, after feasting a little bit in Greece and Spain. About friggin time...payback is a bitch.

Sun, 07/01/2012 - 12:18 | Link to Comment Sockeye
Sockeye's picture

Uhm. This is pretty freakin explosive news, and will most assuredly be suppressed.

Sun, 07/01/2012 - 12:27 | Link to Comment Pat Fields
Pat Fields's picture

Since the universal banknote scheme automatically co-generates currency and debt, each by the other, the Central Bank notion never really had any other purpose than ... to control interest rates!

The supposition was that the interest rate would regulate inflation and moderate the levels of debt. That presumption, however, has proven misconcieved! Despite 'zero' interest rates, the complex compounding of PAST rates has been proceeding to exponentiality and is soon to implode because the depreciation of the currency and coincident ballooning of interest obligation is overtaking productive capacity to meet even internal consumption!

Sun, 07/01/2012 - 12:34 | Link to Comment LULZBank
LULZBank's picture

"Has been doing wonders for the value of my assets and returns, who gives a shit about the sheeple."

Sun, 07/01/2012 - 12:23 | Link to Comment km4
km4's picture

President Obama Asks Campaign Donors to Send Him More Money

http://www.thedailybeast.com/articles/2012/06/30/exclusive-president-oba...

Sun, 07/01/2012 - 12:24 | Link to Comment Kina
Kina's picture

The class of persons that have done the absolute worst damge to this world and harmed the most people, destroyed the most lives, and countries, is not the class 'terrorist' but the class 'bankster'.

 

Banksters are a mestatised cancer, they have infested every part of the body. Unfortunately chemo wont work because of the specific cell-death blocker, copted politician/regulator. To cure the cancer one has to first render the blockers inactive which is done by cloning and injecting the Bubba-porn-cell. The bankster-sarcoma can then be readily turned into headless chicken which are easily cleaned up the systems immune system, judges judy.

Sun, 07/01/2012 - 12:36 | Link to Comment Pat Fields
Pat Fields's picture

Governments pass the statutes allowing every iota of criminality exercised in banking. Government passes statutes eliminating entry of competition against monopoly industrialists.

The 'bankster' ploy is a ruse to protect the GANG. It's a collusion of elements constructed to steal the labor of The Peoples of all this world's countries.

Sun, 07/01/2012 - 12:41 | Link to Comment Abner Doon
Abner Doon's picture

Agreed.

Is outsourcing American jobs to increase corporate profitability OK

as long as it’s not your job?

 

If the Attorney General of the United States

takes an oath to uphold the law

are there exceptions if the suspect is the president of the United States

the Federal Reserve

and most of the leaders of the financial sector?

 

Sun, 07/01/2012 - 15:14 | Link to Comment Pat Fields
Pat Fields's picture

Production is 'outsourced' because the cost of domestically depreciating 'capital' necessitates it for survival. Better to export the inflation. That's what 'petro-dollars' and 'euro-dollars' are all about.

The A.G., believe it or not, IS upholding the law (statute, to be precise). Nearly all federal statute is written as applicable in its private Congressional jurisdiction, provided at Art. IV, Sec. 3, cl. 2. Those who fail to differentiate between federal jurisdiction and that original and ordinary to their States, fall prey to inadvertant traverse, leaving them subject to its 'rules and regulations', explicitly excluded from Constitutional constraint.

Sun, 07/01/2012 - 12:26 | Link to Comment otto skorzeny
otto skorzeny's picture

instead of CNBC posting the LIBOR % rate as a # on their scroll it should just say "It's whatever the f*** % we want it to be-bitchez"

Sun, 07/01/2012 - 12:31 | Link to Comment Zola
Zola's picture

It is unfathomable the extend of the corruption, deceit , as well the mindless ignorance and placidity of the sheeples.

When is there going to be redress , when is there going to be justice ? Even if there was a mass demonstration and march to washington, maybe 100,000 would join, not 10 million. 

Is humanity that sad a specie ? Is the 21st century destined to be a repeat of widespread poverty with a few ultra rich aristocrats and kings ?

Sun, 07/01/2012 - 12:35 | Link to Comment Benjamin Glutton
Benjamin Glutton's picture
  •  
Vince Cable calls for criminal investigation into Barclays bankers

Business secretary backs demand for police inquiry into bank fined £290m for role in manipulating City interest rates


Vince Cable said the public 'can’t understand why people are thrown into jail for petty theft and these guys just walk away'.

Vince Cable has called for a criminal investigation into the conduct of the Barclays bankers responsible for rigging key interest rates.

The business secretary said the public would not understand why people were jailed for petty theft while bankers were getting off, "having perpetrated what looks like conspiracy".

And he said he agreed with Lord Blair, the former Metropolitan police commissioner, who said there appeared to be evidence that Barclays employees were engaged in conspiracy to defraud.

In an interview with Sky's Dermot Murnaghan, Blair said: "There have to be police inquiries into this.

"Anybody, the youngest detective, would say this is conspiracy to defraud. It can mean nothing else. And therefore someone has to launch a criminal inquiry into this behaviour."

Speaking on the same programme, Cable said "his instincts" were to agree with Blair, and that members of the public would expect a criminal investigation too.

"They just can't understand why people are thrown into jail for petty theft and these guys just walk away having perpetrated what looks like conspiracy," Cable said.

Barclays has been fined £290m in the UK and the US for its "serious, widespread" role in manipulating two City interest rates used to determine the cost of borrowing. Investigations into other banks are continuing.

In a statement to the Commons on Thursday, the chancellor, George Osborne, played down the prospects of any of those involved facing criminal prosecution because rigging Libor [the London interbank offered rate] is not a criminal offence under the City's regulatory regime.

As well as expressing his personal support for a criminal investigation, Cable said he had been told that the Serious Fraud Office was having "a fresh look" at the evidence produced by the Financial Services Authority (FSA) investigation into Barclays.

Sun, 07/01/2012 - 13:11 | Link to Comment No Euros please...
No Euros please we're British's picture

Blair wants a public enquiry because Brown (who blackmailed him out of office) was the one who authorised the LIBOR fix. Revenge is a dish best served cold.

Sun, 07/01/2012 - 13:26 | Link to Comment Benjamin Glutton
Benjamin Glutton's picture

could care less who authorized the conspiracy. put them all in prison. brown black green red...if you paticipated you go to prison. EOS.

 

I know little of Brittish politics. serve it up!

Sun, 07/01/2012 - 13:49 | Link to Comment Rip van Wrinkle
Rip van Wrinkle's picture

Now that would be karma. I'd forgive that 'copper' Blair everything if he could nail the Scotman to the cross.

Sun, 07/01/2012 - 12:36 | Link to Comment Abner Doon
Abner Doon's picture

If a few multinational corporations
own an overwhelming majority of newspapers, magazines, news channels
radio stations, book publishers and business information sources,
what are the chances of an investigative journalist
publishing a negative story on a sister subsidiary
or on a subsidiary of another company that could retaliate in kind,
or on a whistleblower against the top brass
of the fourth largest bank in the country?

Is it worse that America’s political leadership didn’t see the financial crisis coming,
or that most economists and business leaders didn’t know
or did and failed to inform the public,
or that some legislators sharing relatively high portions of blame,
pledged to find and punish those responsible and did relatively nothing
as the regulatory infrastructure of the country became compromised?

Sun, 07/01/2012 - 12:59 | Link to Comment BidnessMan
BidnessMan's picture

The Investigative Journalist would have to work for a newspaper completely outside the industry - say maybe a music newspaper like Rolling Stone?  

What are the chances .... 

Sun, 07/01/2012 - 13:07 | Link to Comment No Euros please...
No Euros please we're British's picture

Paul Tucker. lmao there's always a fall guy just waiting to take the rap. Labour ask for a full public enquiry whilst shitting themselves that there actually will be one that uncovers the truth.

Meanwhile the bankers continue to fleece the sheep and get paid by the government for the privilege.

Sun, 07/01/2012 - 14:22 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Yeah - since Little Jack Horner doesn't appear to be available, Paul Tucker will have to take the rap. 

Sun, 07/01/2012 - 13:17 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

This whole story dies and gets permanently buried in 3. . . 2. . 1. . .

Sun, 07/01/2012 - 13:24 | Link to Comment WTF2
WTF2's picture

Did the Moon just crash into the Earth, Jamie's worst fear???

Sun, 07/01/2012 - 13:27 | Link to Comment Grand Supercycle
Grand Supercycle's picture

More Equity Rally Expected.

Any traders predicting a multi month equity rally apart from me ?

As of June 30th I am.

Last week was the turning point.

Further equity upside and USDX weakness expected this year according to my analysis.

However the SPX big picture remains very bearish and unfortunately this will not change.

http://www.zerohedge.com/news/2012-12-24/market-analysis

Sun, 07/01/2012 - 13:29 | Link to Comment brianshell
brianshell's picture

Central banks, fractional reserve banking, sovereign borrowing and credit cards must be outlawed definitively worldwide.

Sun, 07/01/2012 - 13:47 | Link to Comment onebir
onebir's picture

From the BBC story

"There is no contemporaneous minute or recording of the meeting, I am told. However Mr Diamond and Mr Tucker have different recollections of it, according to well-placed sources."

Both sides playing "The Corzine Defence"... 

EDIT:

"Regulators found that Barclays "routinely made artificially low Libor submissions to protect Barclays' reputation from negative market and media perceptions concerning Barclays' financial condition" from August 2007 to early 2009 - so from long before and long after the conversation between Mr Diamond and Mr Tucker."

What's Tucker got to worry about? (Unless the understatement got bigger after the conversation perhaps?)


Sun, 07/01/2012 - 14:55 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

It's as if the Banksters have conjured up nothing but schemes and lies in order to perpetuate an ability to skim off of all of humankind.

 

Instead of fining a 'Corporation', which is just a name on a piece of paper, how about prosecuting someone that is responsible for the fraud!

Sun, 07/01/2012 - 15:21 | Link to Comment tony wilson
tony wilson's picture

the bbc and robert peston cannot be trusted.

remember peston is mi6 and most certainly part of the rothschild,murdoch firm.

regular country suppers in  oxfordshire with rebbeca brooks and david cameron and someone called nat rothschild.

robert peston does not bust stories from painstaking forensic investigations he is just a stooge with impeccable sources.

framing and shaping a collapse agenda.

anything from the bbc is today suspect.

no journalist exists today in the uk.

no decent story will be broken by any of these scripted clowns.

unless it is for diversion

 

Sun, 07/01/2012 - 15:41 | Link to Comment fiddy pence haf...
fiddy pence haff pound's picture

and he is hot for Christine Lagardes crusty ass.

This is not an exaggeration.

and I wouldn't trust the BBC when it comes to vested interests and UK foreign policy. They're suppposedly independent of the gov, but they are not at all.

They're ripe for a takeover by the ZH broadcasting corp.

Sun, 07/01/2012 - 15:52 | Link to Comment magpie
magpie's picture

It does betray some fractures among those involved. Though when i first heard of it a while back i suspected it might also be a good cover for rising interest rates...quite obvious actually but don't ask me where or when.

Sun, 07/01/2012 - 15:37 | Link to Comment fiddy pence haf...
fiddy pence haff pound's picture

Is this 'discovery', 3 years after ZH wagged it in front of their faces,

enough to end the international ponzi?

I'm not sure.

You see, Englanders are great at appearing shocked about immorality

while being up to their eyeballs in it themselves. Parliamentarians

are just the best of the bunch at hypocrisy.

They'll set up an enquiry, because some big, connected people will have broken some serious laws, and the government doesn't want these oligarchs to go to jail. They take 3 years to study it, and another 5 to not produce a proper review.

Meanwhile, a hot issue becomes academic and historical.

This is how Tony Blair can be repeatedly shown to be an international war criminal and yet still ponce around collecting cheques from

oil companies he had done some work for, in Iraq.

Sun, 07/01/2012 - 19:07 | Link to Comment dreadnaught
dreadnaught's picture

isnt UK debt to GDP level at 950- 1000% But London is the center if it all so they go scot free

Sun, 07/01/2012 - 20:09 | Link to Comment MFL8240
MFL8240's picture

Disgusting bastards!

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