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The Li(e)bor Rigging Scandal Infographic For Dummies
Via Healthcare Administration,
Since (at least) 2005, Barclays has been manipulating LIBOR, and their traders have been allegedly pocketing $40MM a day betting on interest rate derivatives. If the LIBOR, one of the most fundamental metrics of our banking system can be rigged, can you imagine what other elements of our financial system are a fraud? This morning's comments from European regulators appears to confirm that this story has a long way to go as ECB's Almunia states: "The evidence we have collected is quite telling so I am pretty sure this investigation will not be closed without results."
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Alternate info-graphic
http://2.bp.blogspot.com/_ju2fN2VlDhE/ShE0-077p3I/AAAAAAAAAIk/Qp-vvZLYj8A/s400/shit_hits_the_fan.jpg
no, thats too personal and doesnt have the mass effect carlyle group wants.... this is more like it
http://vimeo.com/24854061 You eat stuff grown in your neighbors shit. Bon appetit.
Graphic!
The uber large banks can just borrow from the Fed's discount window for ZIRP.
The Cirlce Of Trust....http://www.youtube.com/watch?v=4oz4G3rO5zg
new Clif High ( Webbots guy ) up from yesterday.... pretty damn dark...
http://www.payloadz.com/d1/freeproducts.asp?id=1643744
But but... if the big banks can bet on a change in interest rates AND also know ahead of time what they're going to chnage to...isn't that a little Dishonest?
No! I can't accept it! They're too big to fail and too fat to impale!
I want to get plugged back into the Matrix now....please!
Webbots are FAIL, even High Clif Said that, and threw in the towel, saying "(sic) It Doesnt work" only to come back the next week, with more nonsense.
Cliff High has no dignity, every single "web bot" prediction has failed totally, yet he blubbers on. His last main predition about not seeing past May 2012, and that early May would be the end of the world as we know it. His post starts:
"Your last 26 days of life. On March 2, 2012, the zionists (isreali mossad and cia agents) who are the stooges of the central banksters, will attack an American naval ship (as they did with the USS Liberty). ...."
See for yourself here :http://halfpasthuman.com/lastdaysofyourlife.html
Web bot / Cliff High is a complete fraud.
gives new meaning to eat shit & die. Fracking fluids are disturbing as well.
ive never seen so many infographics for one event.
So where's the squid in all of this?
Good question- no doubt Blankfein and Co were as much involved as JPM and BOA.
Jim Willie predicted in early June the 10 year would make a run to 1%, prior to an epic collapse in treasuries and an explosion in gold.
With the 10 and 30 year making new record lows today...looks like Willie nailed that one.
http://www.silverdoctors.com/jim-willie-ustbonds-black-hole-dynamics/
Now all we need is the PM explosion.
No way they'd manipulate that like LIBOR.
/sarc
could one bet on manipulated backwardation trend of Libor in Barclay's via derivative swaps? That would be insider trading where the collusion would be evident. Did they?
Im just not suprised by any of this any more.
They got u by the balls, 24 hrs a day telling u wat to believe, what to buy. Its a big club, and YOU aint in it.
http://www.youtube.com/watch?v=iHsIjMPP2M8
Sh!t stinks, no matter how you spin it.....
recognition of the problem is the first step towards fixing it, and you've recognized the problem.
I can't in good concious hold my nose and vote for either of the bimbos the repubocrats are offering as solutions. I'm writing in Ron Paul if they won't put him on the ballet. He's the only one who seems to know what you know.
Mitt might say that he'll become a banking Robin Hood, putting on tights and fighting the mighty cartel for the little guy!
Hmmm, a prospective government employee wanting to help me, or not voting..................
I think I will go with the latter.
pods
Things that make you go hmmmm!
Somehow I just do not believe that Mittens in tights would be a help to anyone.
Duz majic underware float yer boat? :>D
"All animals are equal, but some animals are more equal than others". Orwell - Nothing new here move along.
"The wheels on the bus go round and round...." Until they fall off!
Stay tuned, more to come...
Market riggings= bankster hangings.
Expose these banking thieves for the cocksuckers they are. Arrests! Trials! The Gallows!
Al, Let me tell ya: Wu's pigs!
Wu's pigs would spit out bankster flesh.
These banking thieves should be hung because they create credit and lend it out at interest.
And they have been doing that for over a hundred years in the USSA.
pods
Excellent picture. Wait until instead of Title "Libor Manipulation" says "FX Manipulation" syndicate.
""The evidence we have collected is quite telling so I am pretty sure this investigation will not be closed without results.""
We all know how this works. Undoubtedly money will change hands a few inconsequential political enemy small fries will take the fall, lots of political posturing, a new law or two, then everyone will retire to the club for cocktails and entertainment with the more astute ones getting into the pretty blonde reporter's panties. Case closed. Story at 10.
I'm guessing there will be one fine and a few "firings".
And yes, the politicians will compete to claim they saved the day. And then it's off to Berlusconi's house for the weekend
Yes but the Lawyers smell money....and the cities and states are short of cash...and this looks like an easy kill....so i expect them to go for the throat...settlements of course...no one will be found at fault...but I think it could be trillions...my loans were tied to libor....
Class action suits on behalf of every person who has had any form of debt over the last several years!
Sounds like the occasional suits against the legality of fiat money that get quickly dismissed on dubious grounds before they can every access the public conciousness where everyone would realize how effectively they've been screwing us. I love it! Keep those suits coming!
Did the Robosigning scandal get anywhere? That was supposed to be wirth trillions.
Yes, I think Mariah Carey is going to be a new judge on American Idol.
Wait: what did you ask?
How about class action suits from anyone who had any SAVINGS and got no fucking interest on it because of the manipulated fucking libor.
That would not get anywhere.
Everyone knows American's don't have savings.
Anyone who had any kind of credit in the last 20 years has a case.
Hmm, ok, who hasn't had any kind of credit in the last 20 years..
Exactly. These cocksuckers steal from everyone, all of us. Time for the debt jubilee and let these crooks fall on their swords.
It's a conspiracy.
'I have been reading the stuff in the press about HSBC and its alleged compliance failings in the U.S., and I admit I am seething.
There's all this talk about drug barons, terror organisations and terrorist states allegedly using HSBC to launder and transfer money - for years - and yet the 'establishment', which was quick to round on my own firm, Barclays, for its LIBOR rate fixing, does nothing.
Why isn't the UK government, quick to come out and condemn Barclays and its culture over LIBOR, all over this ? Oh wait a minute. Is that because the UK Trade Minister, Lord Green, was until faily recently a senior executive over at HSBC ? In fact, most of the admitted wrongdoings took place on his watch.
And what about a Parliamentary hearing (remember Bob Diamond, our former CEO, was called up in quick order to explain himself) ?
And the regulators - you know, the guys at The Bank of England and The Financial Services Authority who pressured our outgoing Chairman to give Bob the boot ?
But let's be honest, the authorities (and by that I mean Parliament, the Bank, and the regulators) never did like us. We were always considered to be loose cannons, pushing the envelope in our quest for profits. We were never forgiven for refusing a taxpayer bailout during the early stages of the financial crisis, when we were able to attract private funds to beef up our balance sheet instead. We were never forgiven for having a global investment banking franchise, and paying decent bonuses to bankers (HSBC, on the otherhand, is a bit player in investment banking, and was always rather frugal when it came to year-end bonuses).
And we were never forgiven for having Bob Diamond as our CEO. A brash American, whatever next ?
So, the first opportunity the establishment gets to nail us, it does. They couldn't wait to kick us when we were down. And we were shafted. Bye, bye Bob; bye bye investment banking; and bye bye my share options.
And as for HSBC ? Not a mumur. Just a conspiracy of silence. The whole thing stinks'.
http://hereisthecity.com/2012/07/24/letter-from-an-angry-banker-we-were-...
Ah an angry banker jealous and pissed off. I think I hear a wambulance coming...
WAAH WAAAH WAAAH
F him.
But let's be honest, the authorities never did like us.
Kinda gives it away, don't it?
No articles I've read previous to this infographic have actually explained what the bankers did. It's a bit bizarre that the best exposé appears on the healthcareadministration.com website, but hey.... knowledge is where you find it.
Now I get it. Most of the rigging and $40m/day profits took place years ago. Nowadays, in the time of zirp, less so. One would bet this rigged game was a mainstay in those quarters where banks never had a down trading day.
....so what happens if the boyz are forced to play a straight game ??
Deutsche Bank takes a 42% profit dump in Q2
http://www.bloomberg.com/news/2012-07-24/deutsche-bank-says-quarterly-profit-fell-42-as-expenses-gained.html
....so what happens if the boyz are forced to play a straight game ??
Libor @ 66,6%?
its a circle jerk and someone diddnt finish their job.
How could a consumer be directly injured by a falsely low LIBOR??? I can see how a falsely high LIBOR could harm consumers. I can see how some idiot betting on derivatives could be screwed either way, but do I really care at all about the idiots who use, and bet, on derivatives??? Isn't the real problem for most people if the LIBOR falsely manipulated UP as opposed to DOWN.
Plus, if LIBOR was manipulated downward, didn't banks as a whole stand to lose as their own interest rate would net them less??? Am I wrong???
Squeeky Fromm, Girl Reporter
Seeing the future in 100% HD is MONEY !!!!!!
so many Libor rates and so little time...
Squeeky google Jon Stewart's explanation of LIbor. ZH posted it too.
Fonz:
Thank you!!! I will.
Squeeky Fromm, Girl Reporter
True, but the banks were also selling interest rate swaps that made them far more money and far more quickly when the rates did not go up. I know....the group I work with bought some of these from BofA....they made a killing on what we dumbly purchased....but we are going to sue. The FSA in the UK has already required the banks to make farmers whole who bought similar swaps there.
whoever was paying them $40M per day was sum dum fuks.
Nice...now let's talk about Prime Rate manipulation.
3.25 for what ??? 4 years.....??? what's to talk about ? That's rigged too.
http://www.fedprimerate.com/
Why does the Fed fix the price of loanable funds, but not that of other goods, for instance potatos?
Because they have no coherent theory of economics.
They are merely dilettantes in numerology.
WHERE IS JON CORZINE?
So, it's like a bookie that has a member of a pro sport team on the payroll that is shaving points off the game to cover the spread?
I remember the days in 2008 when we were watching LIBOR go up like a scream as banks quit lending to each other due to assumed risks inter-bank. Essentially, everyone in the financial community aready knew everyone else was insolvent and felt they wouldn't get their money back even on over-night loans to big names. So the risk-weighted LIBOR had to go up.
Then it all sorta died down. Now I guess we know what was going on behind the scenes.
I can understand one bank not wanting to lend to another. Lehman was no doubt floating loans "overnight" and comfy LIBOR rates right up until the day they imploded. Who knows how much capital evaporated in that wee clusterfuck? The banks sure as hell knew. And any one of the others might have been next.
In a way, this is like a private club. The bankers play with each others' toys (I was going to say dicks) all the time and nobody needs know about it. During 2008 we had a rare glimpse. Now again, we get another. Should we care what they do? I'm not sure, and I don't know how these inter-bank rates hedge risk. But if one of the banks is sitting on a powder keg and will blow up any day, then we want healthy banks (I assume there are one or two left) to stay away from them or at least get a big risk premium, otherwise the demands on taxpayer bailouts is all the worse when the bomb does go off.
>Should we care what they do?
No, why would you care if other people are manipulating their own made-up numbers like LIBOR? Anyone who depends on such a number is an idiot.
>But if one of the banks is sitting on a powder keg and will blow up any day
That's what Ponzi schemes / fractional reserve / bailment fraud operations do.
>then we want healthy banks
That's an oxymoron. Like a healthy melanoma.
>the demands on taxpayer bailouts is all the worse when the bomb does go off.
Americans love it when their wealth is stolen. They love being impoverished. That's why they're voting for Obamney.
Look, we are all polite gentlemen of means here. WE don't want to create a scandal. Let's just agree that Jerry Sandusky is a bit weird, and let it go at that
The NSA has years of everyone's emails. Which ones do you think might be released. Perhaps enemies of the Bush family? Central Bankers?
We are going to have a another mentally challenged world leader soon.
...you still believe they even bother with 'real' emails ? How quaint.
The enemy http://tinyurl.com/d2t949v
and
Its analogical form http://tinyurl.com/cpqod8l
it's just natural physics
Throw them all in jail and let them manipulate the trading of cigarettes in the big house....
Awesome video http://www.theonion.com/video/prison-economy-spirals-as-price-of-pack-of-cigaret,14327/
Most contributors at this site are well versed in the knowledge that most all, if not all, markets and the stats they produce are rigged.
It is now so blatant that the Ancien Régime is simply rubbing our noses in the smegma ....
I said it before in discussing the Melian Dialogue.
"the strong do what they can ( want to) and the weak suffer what they must"
"the strong do what they can ( want to) and the weak suffer what they must"
The rest of us mark time posting on ZH while trying to get stronger.
"the mentally retarded do what they can (vote for Obamney) and the rest suffer what they must"
More scandals = bigger bids into U.S. Treasuries.
10-yr. bond futures just hit another lifetime high.
Paper Bubble is getting even more crazy, everybody will be throwing in the towel on stocks and will start buying bonds at any price after that AAPL miss.
" If the LIBOR, one of the most fundamental metrics of our banking system can be rigged, can you imagine what other elements of our financial system are a fraud?"
So the unemployment numbers, the CPI, GDP - these numbers are all rigged? Please tell me it ain't so.
Corzine takes investors off a fiscal cliff and is golfing every day.
This can't be anything to be seriously investigated can it?
As long as he can keep it on the fairway, should keep him in the open for a good headshot!
sorry, just couldn't resist :)
Lesson # 1: Without overt conspiracy, the financial system is unsustainable
So which was worse, US rating agencies in cahoots with banks grading sub-prime loans as AAA investments or the Liebor scandal ?
It will be interesting to see if American lawers find the impetus to go for European liebor manipulating banks and yet the same lawyers had allowed US Banks "carte blanche" sub prime criminality.
Crime = 30 yr at 2.45 and 30 Yr mortgage rate at 3.5. Wtf kind of fcuking spread is that folks. There's NO effort to get people into houses at a fair rate.
Its a crime and fcuking Obbummer isn't doing shit about it Cept letting these banking motherfuckers make an unlawful and out fcuking obscene spread on the backs of the very people who bailed them out and are getting DP'd as thanks.
@Squeaky Fromm: “Isn't the real problem for most people if the LIBOR falsely manipulated UP as opposed to DOWN.”
The Meaning of Libor-gate by PAUL CRAIG ROBERTS
Excerpts
T]he “safety” and “flight to quality” explanations (of the demand for Treasuries despite their negative yield) could not exist if interest rates were rising or were expected to rise. The Federal Reserve prevents the rise in interest rates and decline in bond prices, which normally result from continually issuing new debt in enormous quantities at negative interest rates, by announcing that it has a low interest rate policy and will purchase bonds to keep bond prices high. Without this Fed policy, there could be no flight to safety or quality.
It is the prospect of ever lower interest rates that causes investors to purchase bonds that do not pay a real rate of interest. Bond purchasers make up for the negative interest rate by the rise in price in the bonds caused by the next round of low interest rates. As the Federal Reserve and the banks drive down the interest rate, the issued bonds rise in value, and their purchasers enjoy capital gains.
As the Federal Reserve and the Bank of England are themselves fixing interest rates at historic lows in order to mask the insolvency of their respective banking systems, they naturally do not object that the banks themselves contribute to the success of this policy by fixing the LIbor rate and by selling massive amounts of interest rate swaps, a way of shorting interest rates and driving them down or preventing them from rising.
The lower is Libor, the higher is the price or evaluations of floating-rate debt instruments, such as CDOs, and thus the stronger the banks’ balance sheets appear.
Does this mean that the US and UK financial systems can only be kept afloat by fraud that harms purchasers of interest rate swaps, which include municipalities advised by sellers of interest rate swaps, and those with saving accounts?
The answer is yes, but the Libor scandal is only a small part of the interest rate rigging scandal. The Federal Reserve itself has been rigging interest rates. How else could debt issued in profusion be bearing negative interest rates?
As villainous as they might be, Barclays bank chief executive Bob Diamond, Jamie Dimon of JP Morgan, and Lloyd Blankfein of Goldman Sachs are not the main villains. The main villains are former Treasury Secretary and Goldman Sachs chairman Robert Rubin, who pushed Congress for the repeal of the Glass-Steagall Act, and the sponsors of the Gramm-Leach-Bliley bill, which repealed the Glass-Steagall Act. Glass-Steagall was put in place in 1933 in order to prevent the kind of financial excesses that produced the current ongoing financial crisis.
President Clinton’s Treasury Secretary, Robert Rubin, presented the removal of all constraints on financial chicanery as “financial modernization.” …
It was financial deregulation–the repeal of Glass-Steagall, the removal of limits on debt leverage, the absence of regulation of OTC derivatives, the removal of limits on speculative positions in future markets–that caused the ongoing financial crisis. …
The ongoing crisis cannot be addressed without restoring the laws and regulations that were repealed and discarded. But putting Humpty-Dumpty back together again is an enormous task full of its own perils. …
What follows is not an apology for fraud. It merely describes consequences of holding those responsible accountable.
Imagine the Federal Reserve called before Congress or the Department of Justice to answer why it did not report on the fraud perpetrated by private banks, fraud that was supporting the Federal Reserve’s own rigging of interest rates (and the same in the UK.)
The Federal Reserve will reply: “So, you want us to let interest rates go up? Are you prepared to come up with the money to bail out the FDIC-insured depositors of JPMorganChase, Bank of America, Citibank, Wells Fargo, etc.? Are you prepared for US Treasury prices to collapse, wiping out bond funds and the remaining wealth in the US and driving up interest rates, making the interest rate on new federal debt necessary to finance the huge budget deficits impossible to pay, and finishing off what is left of the real estate market? Are you prepared to take responsibility, you who deregulated the financial system, for this economic armageddon?
Obviously, the politicians will say NO, continue with the fraud. …
But the question remains: How long can the regime of negative interest rates continue while debt explodes upward? … If the collapse of the system does not result from scandals, it will come from outside. …
To sum up, what has happened is that irresponsible and thoughtless–in fact, ideological–deregulation of the financial sector has caused a financial crisis that can only be managed by fraud. Civil damages might be paid, but to halt the fraud itself would mean the collapse of the financial system. Those in charge of the system would prefer the collapse to come from outside, such as from a collapse in the value of the dollar that could be blamed on foreigners, because an outside cause gives them something to blame other than themselves.
Paul Craig Roberts is a former Assistant Secretary of the US Treasury and Associate Editor of the Wall Street Journal. His latest book, Wirtschaft am Abgrund (Economies In Collapse) has just been published.
http://www.counterpunch.org/2012/07/20/the-meaning-of-libor-gate/
What I don't get is why Barclays is singled out. I know fingers are bing pointed at other banks too. If the methodology throws out the top and bottom 4 contributions, then manipulation by only one bank becomes an art. They want to be number 5 (top or bottom) for maximum effect. The chances of being in the zone but at its edge would damp the magnitude of manipulation possible. If however more contributors were manipulating the rate in concert then................
Barclays and Bob Diamond ( nice name; probably used to be diamondujsky) had the misfortune of mass emailing the whole firm documenting their fraud. You would think they would have learned from Hank Paulson, who testifying to the House Subcommitee on Banking in 2009? claimed; after being grilled as to his knowledge and communications of the cds/cdo debacle and magnitude of risk, "I don't use email". Seems Diamond and all the banks should hve used Hank's MO!
Something that seems to have escaped attention is the size of the positions Barclays (and I assume other banks) were running. If as alleged above, Barclays pocketed up to $40m in a day. What sort of exposure (DV01) would they have had (I suppose I could assume an average duration and overnight move to get a number). Was this ever monitored, reported or commented on. Were these positions "normal" in magnitude, How do they compare to other positoins over time, and at present. Is there a correlation in the positoins and the periods when LIBOR was skewed.
.
The attack on barcap is political as the brits never liked diamon and has nothing to do with libor fixings since for most part of the period in question barcap rates were off the mark in taking part of the median or average libor across all maturities...the problem is there are few clever guys out there but many but many inept people
When even the centrally planned, State price of Libor is set "too high" by the banks, and they are told to lower it further.....one has no need for further evidence that you are in..... the Twilight Zone.
Throw all the banksters and politicians in jail.