The Lieborgate Circus Comes To The Senate

Tyler Durden's picture

Just out from Bloomberg, where we find that our own corrupt politicians have just discovered that gambling went on for years and years, and nobody had the faintest clue!

  • SENATE BANKING COMMITTEE TO ASK GEITHNER, BERNANKE ABOUT LIBOR

Surely the wristslapping will be so profound, Geithner is already soaking his arm elbowdeep in vaseline. In other news, go long AMZN as Senate (and soon Congress) just bought out Amazon's entire inventory of "Libor for corrupt morons"

More from Bloomberg:

Today, Senate Banking Committee Chairman Tim Johnson (D-SD) released the following statement outlining his plans for Committee oversight and due diligence regarding recent developments pertaining to the London interbank offered rate (LIBOR).  LIBOR for the US dollar is currently set based on information provided by 18 global financial institutions, including several U.S. banks.  LIBOR is used by financial institutions to set interest rates on a variety of financial products including mortgages, student loans, and credit cards.

 

"I am concerned by the growing allegations of potential widespread manipulation of LIBOR and similar interbank rates by some financial firms.  At my direction, the Committee staff has begun to schedule bipartisan briefings with relevant parties to learn more about these allegations and related enforcement actions.

 

"It is important that we understand how any manipulation may impact American consumers and the U.S. financial system.  The Banking Committee will hold hearings in July with Treasury Secretary Geithner and Federal Reserve Chairman Bernanke, and I am asking them to be prepared to answer Senators' questions on this matter."

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Aziz's picture

Um Tyler I think Geithner purchased that vaseline to take to the bathhouse tonight, not because of any wristslapping he's going to get.

idea_hamster's picture

SENATE BANKING COMMITTEE TO ASK GEITHNER, BERNANKE ABOUT LIBOR

Google translated to English:  Hens to ask Fox about henhouse security, missing friends.

Divided States of America's picture

Yeah Turbo Tim is the best person to question as he seems to be an expert with actions involving manipulation and fraudulent activities. (TARP and Tax evasion etc.)

Manthong's picture

ZH, don’t you really mean “The Lieborgate Comes To The Senate Circus” ?

The implication is that at some times the Senate is not a circus.

azzhatter's picture

I'm sure Timmay never leaves home without the vaseline

eatthebanksters's picture

He doesn't need the vaseline...he bought it to put on his desk as a reminder to all his constituents theat he is the one f---ing them up the a--!

viahj's picture

WOW, Senators get the benefit of lube while the rest of us are dry f*cked. 

Temporalist's picture

Long orange jumpsuits

idea_hamster's picture

Well, it may for the people who keep saying "Long orange jumpsuits" for senators and bankers....

GeneMarchbanks's picture

*LOL*

Absolutely. Any and all who disturb this hearing will find themselves in orange jumpsuits.

Race Car Driver's picture

> and nobody had the faintest clue!

Hence, no one will ever see it coming!

When will we ever learn?

gmrpeabody's picture

They were shocked..., SHOCKED I tell you.

mendigo's picture

I suspect they were shocker and pissed... that they were not getting a piece of this action - this cannot be allowed to happen again.

Agent P's picture

"Banking has been berry berry good to me."

LawsofPhysics's picture

Want to talk about rate manipulation?  Talk to the experts, talk to the Federal Reserve Banking cartel.  Audit the fucking Fed, end the fucking Fed and then execute all the fucking Federal Reserve owners and executives.  Nothing short of this will change anything.  They are the only monopoly that is killing competition and free markets.  End them, and the free markets come back.

eclectic syncretist's picture

Your words are true, but it's unlikely the government is going to end the Fed anytime soon (unless enough people write in Ron Paul for president, and he isn't promptly assassinated by TPTB). The Fed's main reason for existence is to supply loans backed by nothing to the US government, which is allowed to borrow, but not print. 

The inquiry will be done in order to find out how the truth was leaked to the public, not to ensure justice.  That was thrown out the window a long time ago.

MachoMan's picture

So we can implement a pseudo gold standard?  That falls prey to the same fractional reserve nonsense as everything else? 

I'm not saying that congress shouldn't have the FED's abilities or that the FED's charter shouldn't be revoked...  but what is going to rise in its place?  What is LIKELY to rise in its place?

The problems you describe are not solely attributable to a few people...  rather, these things are inherent in human nature...  and, further, keep recurring...  again and again.  It seems as though humans have failed to either devise the solution or implement it...  so what is the solution and how does it get implemented? 

t_kAyk's picture

"No risk of truth.  No risk." 

HD's picture

New official SEC motto:

"I'm shocked, SHOCKED to find out there is gambling in this establishment."

It replaces "What? Me worry?"

Fix It Again Timmy's picture

SENATE BANKING COMMITTEE - Morons R Us

pods's picture

So we will now have numerous sound bites of pompous asses bloviating on and on while nothing gets done?

Damn, sounds like a gig that I am overqualified for.

pods

taniquetil's picture

Qestion 1) My Bernanke, can you please explain what...L...L...Lih-bor means?

Snakeeyes's picture

Even I want to hear Bernanke testify on how The Fed's role in manipulating LIBOR. Who cares what Geithner thinks.

http://confoundedinterest.wordpress.com/2012/07/06/libor-fixing-and-the-...

Since the Dems control the Senate, prepare for an attack on banks, but no hard questions for Bernanke.

Again, look at the charts of LIBOR and Fed Funds Rate (or 3 mo T-Bills). Watch loony Democrats ignore those charts.

WhyDoesItHurtWhen iPee's picture

Hey dumbass, dems and repubs are the same shit owned by the same shit Banksters.

LongSoupLine's picture

looks like the "banking Committee" needs a hearing to understand what LIBOR is...via Fed and Treasury "definition".

 

Full retard redux...

USisCorrupt's picture

When will it ever end?

 

Are there actually People left in this world who think the current system has a snowballs chance in hell of surviving?

Fish Gone Bad's picture

With all this attention on LIBOR you would think it would get back to where it was supposed to be.  Nothing will come of this.

RobotTrader's picture

Nobody cares about LIBOR. It only concerns the banks at the wholesale level, Joe Six on the street doesn't even know or care what LIBOR means.

 

The sheep are ebullient right now, as cheap gasoline and even cheaper organic food these days are pushing stocks like Whole Foods up to record highs today.

I still challenge anyone on the board to walk the sidewalks and show my anybody who knows what LIBOR, LTRO, or ESF means.

midgetrannyporn's picture

The first paragraph is right on. This was the perfect crime because the "victims" are all hiding in the shadows. J6P has no complaint because this manipulation forced the ir on his adjustable loans lower, not higher. This is a real snoozer.

Dr. Engali's picture

You are right there. Hell I challenge you to walk the sidewalk and ask people if they know who Joe Biden is. I'll bet you 1 in 10 will know the answer.

MFL8240's picture

Lieborgate Circus??  I consider Harry Reid and the senante more of a circus than Liborgate.

azzhatter's picture

I saw a poll the other day that stated 30% had no idea on the SCOTUS ruling on Obamacare

Miss Expectations's picture

The Watergate Rhyme: 

What didn't you know and when did you know you didn't know and how the fuck didn't you know?

firstdivision's picture
  • SENATE BANKING COMMITTEE TO ASK THEIR FINANCE 101 PROFESSORS WHAT IS DEBT
  • icanhasbailout's picture

    Oh ho ho! Guess who is implicated now?

    Insight: Fed knew of Libor issue in 2007-08, proposed reforms

    http://finance.yahoo.com/news/insight-fed-knew-libor-issue-051658815.html

     

    who was running FRBNY in 2007-2008, again?

    Peter K's picture

    Circus Part Deux:

    Irelands FinMin wants ESM access for Ireland, retroactively. :)

    world_debt_slave's picture

    The senate trying to appear relevant.

    buzzsaw99's picture

    Don't get overly excited, they have been "investigating" manipulation in gold and silver for years.

    Dr. Engali's picture

    "Libor for corrupt morons"

    You are too funny Tyler.

    sumo's picture

    Imagine a cross between an AI program and Lucky Luciano.

    Every day your feed it the news, and all the program says is, over and over: "Jesus Fuck. Did I join the wrong mob or what?"

     

    cranky-old-geezer's picture

     

     

    Congress won't tackle a huge obvious problem like the Fed.  What makes you think they would do anything about Liborgate, a far smaller problem?

    Congress is owned by Wall Street.  Everybody in DC is owned by Wall Street.  Wall Street banks own the Fed. 

    Wall Street is the new seat of power in America.  If you don't realize it, it's time you realized it. 

    Don't expect any prosecutions out of DC.  Wall Street owns DC now. 

    And it's like the mafia.  Someone in DC gets out of line, they're whacked, knocked off, taken out.

    This is the new reality in America.  Deal with it.