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Manipulation And Abuse Confirmed In $350 Trillion Market

Tyler Durden's picture


Just over three years ago, Zero Hedge first pointed out some dramatically meaningless inconsistencies in one of the world's most important numbers (which also happens to be "self-reported" and without any checks and balances) - the London Interbank Offered Rate, better known as LIBOR, which is the reference rate of a rather large market. Following that, we made a stronger case that the Libor, should really be abbreviated to LiEbor in "On the Uselessness of Libor" from June 2009, which alleged that this number is essentially manipulated, potentially with malicious intent. That alone got us a very unhappy retort from the British Banker Association (BBA) which is the banker-owned entity set to "determine" what the daily Libor fixing is based on how banks themselves tell us their liquidity conditions are. Well, as has been getting more and more obvious over the past two years, our allegations were 100% correct, and have now manifested in a series of articles digging through the dirt, manipulation and outright crime behind this completely fabricated number. And yet this should be the most aggravated offence in the capital markets, because LIBOR just so happens is the primary driver in determining implicit risk as a reference rate for $350 trillion worth of financial products. That's right - that one little number, now thoroughly discredited, has downtstream effects on $350,000,000,000,000.00 worth of notional assets. That's a lot. And while we are confident that nobody will ever go to prison for LIBOR fraud, which has explicitly been leading investors and speculators alike to believe that risk is far lower than where it truly is, what one should ask if the LIBOR rate is manipulated, and with is the entire floating and interest rate derivative market, not to mention CDS which are also driven off a Libor benchmark, what is there to say about the minuscule in comparison global equity market? In other words, does anyone honestly think that with the entire fixed income market pushed around by individuals with ulterior motives, that stocks are ... safe for manipulation?

Here is the mainstream media explains it:

Nine separate enforcement agencies in the US, Europe and Japan have been probing whether US and European banks manipulated the London Interbank Offered Rate or Libor, the benchmark reference rate for $350tn worth of financial products, and other interbank lending rates.


So far, only Japan’s Financial Services Agency has formally sanctioned banks in connection with the probe. In December, regulators found that two former Citigroup employees in Tokyo attempted to pressure colleagues and employees at other banks involved in the rate-setting process for the Tokyo Interbank Offered Rate, or Tibor.


While the regulator did not publicly name the traders involved, people familiar with the case identified them as Thomas Hayes, a trader of yen-related products, and Christopher Cecere, his former boss.


According to those people, the alleged attempts to influence Tibor were uncovered after another Citi employee in London reported the activity. Citi took a $50m loss when it unwound the traders’ positions and reported the matter to regulators, according to people familiar with the case. However, other Citi sources suggested the losses were significantly in excess of that amount. The investigation into possible manipulation of global interbank lending rates has accelerated in recent weeks, with more than a dozen traders at banks including Royal Bank of Scotland, Deutsche Bank, UBS and JPMorgan Chase fired, suspended or placed on administrative leave.

And some more:

When the news first broke in March 2011 that big US and European banks were being investigated over whether they manipulated a crucial global lending rate, regulators appeared to be focusing on one of the most persistent rumours of the financial crisis.


For years, analysts, academics and bankers have believed that, as fears of an impending banking collapse escalated in late 2007 and into 2008, some of the weakest institutions tried to conceal the fact that they were having to pay more to borrow from other lenders.


US regulators and prosecutors wanted to know whether banks were lowballing their daily submissions to the panels that set the benchmark interest rate that banks charge to lend money to each other, known as the London Interbank Offered rate – “Libor”. The Libor setting process is public and closely watched, so a bank that put in relatively high rate estimates could spark investor concern about its strength.


Critics have long claimed that the rate-setting process lacks transparency and could be subject to abuse if banks tried to co-ordinate their submissions.


“This is just another example of the slow drip of sleaze across the industry,” said one senior industry figure. “How much more can it take?

Much more, sir. Much, much more. Because the fate of the entire status quo and its $100 trillion or so in fake wealth is at stake.


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Fri, 02/10/2012 - 13:29 | 2146451 Flakmeister
Flakmeister's picture

Tyler, shame on you.... did you really think that the Master of the Universe would not pervert and corrupt everything that they touch?

Fri, 02/10/2012 - 13:38 | 2146500 Biggvs
Biggvs's picture

The Libor setting process is public and closely watched

Pesky problem, those damned public eyes. Surprised the whole thing isn't conducted in the dark with all figures submitted in invisible ink just to be sure.

Fri, 02/10/2012 - 13:43 | 2146533 Badabing
Badabing's picture

More fake numbers?

And they wonder why no one wants to participate in the market.

Fri, 02/10/2012 - 14:04 | 2146675 TruthInSunshine
TruthInSunshine's picture

ZH homework for the weekend that explains how such a large market can be so easily manipulatd (non ZH members can study this, too, for extra credit):


"I Am Fishead"
Fri, 02/10/2012 - 14:29 | 2146801 VanillAnalyst
VanillAnalyst's picture

LIBOR manipulated!? Next thing I know you'll be telling me that Rf rate isn't Zero!!! Baloney!

Fri, 02/10/2012 - 15:54 | 2147211 SillySalesmanQu...
SillySalesmanQuestion's picture


I'l bite...

P.S. I could not agree more with your link...

Sat, 02/11/2012 - 02:54 | 2148824 Milestones
Milestones's picture

Thanks for the post on "fishead" Thoughtful.         Milestones

Fri, 02/10/2012 - 14:04 | 2146676 Harlequin001
Harlequin001's picture

"The Matrix has you..."

Fri, 02/10/2012 - 13:47 | 2146564 tired1
tired1's picture

Love that word: "sanctioned". Like so many words - it means nothing.

Fri, 02/10/2012 - 14:03 | 2146669 Sokhmate
Sokhmate's picture

allegedly. /s

Fri, 02/10/2012 - 15:12 | 2147023 LongSoupLine
LongSoupLine's picture



Ok Tyler, now that you've been right for years regarding do you and we as loyal ZH'ers get this data mainstream.  THAT is the x-factor to true change.

Hmmm, perhaps we hire Clint Eastwood?...he's getting more airtime on CNBS than even Mandy's that's winning.

Sat, 02/11/2012 - 20:23 | 2149923 swani
swani's picture

Maybe instead of attempting to take real news to the mainstream media, people should be getting off the mainstream media. 

Fri, 02/10/2012 - 13:59 | 2146453 falak pema
falak pema's picture

Oh wow a long number account. And it could double overnight. Notions are like visions they can multiply when hallucination captures the mind. Jack and the bean stalk could feed that hallucination, like Loch Draghi, by opening wide the spigots. 

As a corollary to this article and its past antecedents which honour ZH : How can ZH now pretend that the Eurobashing in its columns based on so called market instruments and actors so thoroghly corrupt and unreliable, over  such a long period of time, used blatantly to hang the people of EUroland via market shenanigans has any validity. All manipulated in CDS/mega spreads scams, fabricated by these entities themselves, on both sides of the trade, in dark places unregulated called OTC transactions. Such a circular and corrupt construct; how could it have any TRUE justification in defining SPREADS, DETRIMENTAL TO NATIONAL SOVEREIGNS, as its totally  deregulated, arbitrary or coercive product of scam market played by scum bag players in closed, opaque loop. Its been a robber plan of huge magnitude to enrichen the same scum bags, who inspite of these spread pilferings, still continue to drown in debt and drag the whole market to foggy bottom. Could anything be more Faustian, self fulfilling and devil's disciple than that?

As these swaggering towers of shit-fiat-construct, now as always, walk the streets of finance as ISDA members and lead players of WS who determine the fate of the world! ....

Fri, 02/10/2012 - 14:01 | 2146666 Tyler Durden
Tyler Durden's picture

You mean Europe did not leverage itself into oblivion?

Fri, 02/10/2012 - 14:15 | 2146732 falak pema
falak pema's picture

They were part of it. But who called the shots on the consequences? And Why is UK not being sanctioned and why are US bonds negative? The masters are in WS/CIty. They decide who goes down. And its all fake play.

This selective financial bashing was totally manipulated. A gulf of Tonking dictat on the financial front. And Merkozy are not Ho Chi Minh and Giap; whence the fall out on Eurozone. My analogy is brutal but IMO not as exageration. 

As members of the fourth estate, the free press, an appreciation of priorities is necessary. It was missing on this issue. I have pointed it out incessantly as others. I don't condone the Euro construct, but forced rape is forced rape. And the press should go to the bottom of THAT.

You do a great job, better than most. But there are some blind spots. Just a fact, alas, to my way of thinking.

Fri, 02/10/2012 - 14:56 | 2146927 GeneMarchbanks
GeneMarchbanks's picture

Whoa falak!

Do not under any circumstance attack the NY/City complex as it might lead to the actual source of the problem and genuine introspection for the Anglo-sphere. BWIs, corporate media, monopolistic capitalism are not enemies, it's socialism. Fuckin' Greeks and their... um... 42/hr work weeks and sunny beaches haven't done anything productive like ever meanwhile the IMF is the voice of reason and can't deal with these criminals. The debtors are to blamed, nevermind the fraudulent nature of the loans. Debtors must pay, what? you can't pay? Out with your kidneys!!!

Glad to set things back on course. Track them kidney futures that's the future right there. All hail technocrats.

Fri, 02/10/2012 - 15:32 | 2147064 LetThemEatRand
LetThemEatRand's picture

It is the fault of the public unions. And too much regulation.  

Fri, 02/10/2012 - 15:02 | 2146966 earleflorida
earleflorida's picture



Fri, 02/10/2012 - 15:19 | 2147035 oldman
oldman's picture

Dear Falak,
This is a good site, but your expectations in today's world are a bit naive, it seems to me; more appropriate for an oldman or an oldwoman.
Fourth estate, free press, and appreciation of priorities are words that are only used to market things; they are no longer even used in propaganda.
Z H does have bills to pay because guys like me won't help out with the costs of being a non-commercial blog.
It seems to me, unless it is simply propaganda, that the euro bashing is just more Anglo hysteria and paranoia due to ignorance, plus a lack of respect for any other way of being in the world. I still do not understand what the Europeans have to do to demonstrate their sincerity in maintaining their commercial union and its its medium of exchange.
The whole market trip is so false and is known as such to all participants that there is a natural assumption of complicity by the players. It is a virtual reality without any basis for being believed by any one of us----completely made up!

Thanks for your post and calling ZH out om

Fri, 02/10/2012 - 15:27 | 2147106 GeneMarchbanks
GeneMarchbanks's picture

Can't speak for falak but I'm certainly not calling ZH out on anything. If they can't spot the absolute tunneling and steering of the masses by MSM then it only goes to show that they're becoming in-the-box with what they track and think is relevant. Don't think that is the case.

Fri, 02/10/2012 - 16:18 | 2147379 falak pema
falak pema's picture

Hey, I don't criticise ZH and TD, I laud them, but....I expect perfection from them! That MY SIN. I plead guilty in all humility. Thats what passionate love of ethics means. I plead guilty. 

Sat, 02/11/2012 - 00:25 | 2148709 StychoKiller
StychoKiller's picture

Even God is NOT perfect, His/Her creations keep dying!

Sat, 02/11/2012 - 03:08 | 2148830 Milestones
Milestones's picture

"After a momentary silence, one did spake,

A vessel of a more ungainly make,'

They sneer at me for leaning all awray'

What! did then the hand of the potter shake?

Quatrain from the "Rubaiyat" of Omar Khayyam





Fri, 02/10/2012 - 15:35 | 2147161 earleflorida
earleflorida's picture

the healtiest discourse regarding progressive cognitive reality is an objective POV, that solidify's the authors thesis with his audience as to flatten/ iron the wrinkles of both sides subjective biases - unbeknownst to both - but made visibly apparent with amicable empirical knowledge

thanks ZH

loving it    

Fri, 02/10/2012 - 16:13 | 2147324 falak pema
falak pema's picture

dear oldman,

being old is not a question of age; its a question of losing the thread of things essential and it can happen at any age. So I don't worry about innuendo, I look at logic. I don't find it in your talk. Sorry.

In what is collectively recognised as a collective "meltdown" both of values, and of wealth, of an unparalleled magnitude in first world, I don't know why questioning first principles are deemed "Naive"? Explain that to me; unless your reality, like your avatar, have made you impervious to critical reasoning and to logic; to the point where you can't care or can't be bothered about the basic foundations of our social construct, which is common to both America and Europe. Fourth estate: yes it means a lot to me. Expectations in basic tenets of society is what is lacking in modern USA; I asume you are American. We are not talking about being soft on European decadence, that is the message in your spiel. We are talking about being hard on American decadence. The uber-alles Empire. That pulls the strings on which dance all the puppets around the world. That is the message in my appeal. Cause and effect. It is clear as a dynamite trail. And ZH recognises it in this very thread. That is the irony of it. Cause without effect, is like rape without responsibility, to not acknowledge consequences as responsible beings. That is not being naive, that is being mentally senile at best and callous at worst. 

Now the dividing line is a bit like the Vietnam War. If you can't remember who was right or wrong in that confrontation, then you cannot be expected to understand what the average European feels about financial imperialism exerted by bankers here in Europe. I am making it very simple. My analogy cannot be more evocative than that.

Thank you for taking the time to comment my post. I stand by it. With all due respect. And I don't condone the Euro politicians and Euro banks, servile executors, impotent servants of PAx Americana. 

Fri, 02/10/2012 - 16:38 | 2147478 oldman
oldman's picture

You are correct; I only visit the human context because logic is not all there is in this universe----
If I could break my conditioning as a 'righteous christian brother', I wouldn't even be here to comment, but I am stuck.
'Naive' is not a bad word in my book; I have chosen it as a path rather than be suspicious and paranoid. It is, coming from me, a tongue in cheek compliment to you, and that part of me that cannot completely live in this narrow context where everything seems to rest on the whims of a single species.
'Cause and effect' is great, even the buddha tried to make a case for it, but things are as unconnected as they are connected and so I have less faith in C & E than you or he. Aside from that, it is not so interesting to be so deep in thought so much of the time, for me.
The dividing that you see is somewhat different than mine. I see the dividing line as one that humans will not cross in order to join the rest of the species in our common habitat and notice that man has never existed on this planet without wilderness. These wars and robberies and rapes of which you write are big deals and can sort of be lumped together under 'the human condition', but this is but a small part of of the all------------
Sorry, Falak---I'll end here---I am the one who is naive and that is probably why I used the word in addressing you---By the way, did you know that 'naive' used to be spelled 'naiive'?

Completely out of context---thanks for straightening me out om

Fri, 02/10/2012 - 16:48 | 2147514 falak pema
falak pema's picture

Naiive.. has a sense about it like a string made taut from has a beautiful, fragile, intense feeling. Thanks for sharing your emotions and thoughts with me on this thread. ZH has something very precious : it informs us, it allows us to fight passionately and then to share. Its like life, love of sharing, what more can one ask for! 

Fri, 02/10/2012 - 18:01 | 2147771 Spigot
Spigot's picture

A well placed, well constructed string of expletives helps at times ... :)

Fri, 02/10/2012 - 18:51 | 2147933 falak pema
falak pema's picture

by the rivers of babylon, you can hear my song and its not for sale, so don't inhale,

I can sing it, I can shout it, I can spout it out loud and clear.


Fri, 02/10/2012 - 18:33 | 2147868 PMakoi
PMakoi's picture

OM & Falak, thank you for your integrity and thoughts.  This was the best part of my day.  You are both appreciated.

Sat, 02/11/2012 - 15:17 | 2149547 DrunkenMonkey
DrunkenMonkey's picture

Yes, a bold and frank exchange of views without the seemingly obligatory (for ZH) 'gold, bitchez'.


Sat, 02/11/2012 - 07:30 | 2148887 Archduke
Archduke's picture

Having worked in pricing FixedIncome products for the past year, I can concur that the

OTC bond market is one of the most corrupt and arbitrary mechanisms in our system.


whenever you have to grease sales guys to go on road shows and pitch your products,

you can bet there is information asymmetry.  This said, these middlemen structures

requiring the agency of brokers, dealers, and salesmen evolved because we previously

had little information on relatively illiquid markets.  technology has long since fixed this

in equities.  why can't bonds go on exchanges?  we need to cut out the middlemen and

make this transparent. it's the nebulous and opaque nature of these proprietary ECM

single-dealer platforms that encourage traders to price-fix interest rates.


The weird thing is there is already a working basis for exchange-trade fixed-income:

standard IRS swaps, eurodollar futures should serve as a pretty good reference for

pricing rates.  why there is so much resistance in inter-bank is beyond me.  the only

answer, as ZH puts it, is that all players are engaged in a long game of Indian Poker.


(One area where it's hard to price these beasts is fungibility with respect to credit

worthiness, but that can be solved with open ratings markets, cds, and collateral.

The other area, of course, is that rates based on treasuries are inherently political.

It used to be the bond market brought politics back into line. Nowaways it seems

like this has flipped and politics manipulate rates, thereby destroying the market).


But I digress.  Nevermind the bonds: if the base rates (LIBOR, EURIBOR, TIBOR) are

prone to fixing then we seriously need to re-examine the system and figure out a better

way to price this.  Perhaps the answer lies in exposing rates pricing to end consumers,

which may bring in volumes sufficicent to keep the bankers honest.  after all, current

savings rates are shite.


For the cynical, it's important to note that the story broke into mainstream via Bloomberg,

who just so happens to be the major monopoly ECM bond dealing platform middleman that

our cited bank perpeprators are vying desperately to undercut with their prop ECM networks.

Which doesn't mean that this sort of price-fixing doesn't happen via BBG, because it does.



Fri, 02/10/2012 - 13:33 | 2146465 aleph0
aleph0's picture



.. and Gold not even mentioned once in the article ?

Chicken & Egg : LIBOR & Gold


Fri, 02/10/2012 - 13:33 | 2146469 Alienated Serf
Alienated Serf's picture

Wait until it comes out that Central Banks ordred banks to report low LIBOR to BBA.

Actually, that prob won't come out.

Fri, 02/10/2012 - 13:34 | 2146471 lolmao500
lolmao500's picture

CDS should be made illegal. Or at least, you can't have more CDS than you have assets.

Fri, 02/10/2012 - 13:36 | 2146487 cossack55
cossack55's picture

Or maybe even that there cannot exist more notional risk in CDS's than cash exists on the closest 12 planets.

Fri, 02/10/2012 - 13:39 | 2146513 JPM Hater001
JPM Hater001's picture

Stop regulating.  Please...I beg you.

Let dumb people lose to make them smarter and let buyer beware mean something again.  We will need solid confidence in a free market to get to the otherside ...well, more of us to the other side.

Some still won't make it.

Fri, 02/10/2012 - 13:53 | 2146596 dracos_ghost
dracos_ghost's picture

Except the "elitists" are the dumbasses here and there ain't no way the blue bloods are going to take a hit. It seems to me that the LIBOR the single point of failure AND the single point of control for the status quo.

Fri, 02/10/2012 - 14:01 | 2146663 LowProfile
LowProfile's picture

"Except the "elitists" are the dumbasses here and there ain't no way the blue bloods are going to take a hit."

(Whistles past graveyard)

Fri, 02/10/2012 - 15:20 | 2146994 earleflorida
earleflorida's picture

ummm,... rehypothetication - brought to the board's attention by Tyler

12/10/11   ___    13:10 - 0500 / archive TD            

Fri, 02/10/2012 - 13:34 | 2146477 DoChenRollingBearing
DoChenRollingBearing's picture

Each day it becomes clearer and clearer: Gold is the answer!  Everyone should have AT LEAST 5% - 10% in gold.  And more if you can afford it.

Fri, 02/10/2012 - 13:36 | 2146494 cossack55
cossack55's picture

The other 90% in silver.

Fri, 02/10/2012 - 14:44 | 2146873 Boston
Boston's picture

And a splash of Platinum.

Fri, 02/10/2012 - 15:43 | 2147210 jimmytorpedo
jimmytorpedo's picture

and bullets, whiskey and tobacco seed

Sat, 02/11/2012 - 00:31 | 2148713 StychoKiller
StychoKiller's picture

and food and a good Woman/Man by yer side...

Fri, 02/10/2012 - 13:35 | 2146478 Quintus
Quintus's picture

Question is though, why is this being prosecuted now?

The authorities, if not actually complicit in this fraud were, presumably, aware of it.  Why are they now turning publicly on the perpetrators who are 'Insiders' themselves?

When can we expect the CFTC to be overcome by a similar fit of righteousness and turn on JPM and their co-conspirators in the commodities and metals markets?


Fri, 02/10/2012 - 13:36 | 2146483 Bansters-in-my-...
Bansters-in-my- feces's picture

U.S. enforcement agency...???

Too funny.

Thats for the poor people.

Fri, 02/10/2012 - 13:36 | 2146490 Rainman
Rainman's picture

Hahaha.... must have been fake LIBOR that led Blackrock's Fink to make that 100% equity call to investors yesterday. Now flip-flopping.

Fri, 02/10/2012 - 13:38 | 2146502 francis_sawyer
francis_sawyer's picture

"I'm shocked to find out that there is gambling going on in here!"

Your WINNINGS sir...

Fri, 02/10/2012 - 13:40 | 2146514 apberusdisvet
apberusdisvet's picture

Just goes to show that the propagandists have been succesful in leading the uniformed sheeple to the slaughter about to unfold. The elites are scared, folks; witness the lies becoming more egregious with every passing day and the need for distractions (war).

Fri, 02/10/2012 - 13:40 | 2146520 Yen Cross
Yen Cross's picture

Jesus (H) Christ! I was hoping for a good nights sleep!

Fri, 02/10/2012 - 14:33 | 2146820 Manthong
Manthong's picture

If you need to stay awake, this in the background is better than coffee..

Fri, 02/10/2012 - 14:45 | 2146876 Yen Cross
Yen Cross's picture

Thanks. Caffeine makes me groggy!

Fri, 02/10/2012 - 16:26 | 2147422 Optimusprime
Optimusprime's picture

Yeah, "Joe" with his damnable British Empire balance-of-power rhetoric.  When are people going to wake up and smell the coffee?  That the US is ruled essentially by the same aliens who took over jolly olde England, and contributed nothing more than the same "persistant pernicious meddling" to the world's affairs that resulted in so many wars?  From which those aliens profited and continue to profit. 

Fri, 02/10/2012 - 13:44 | 2146543 resurger
resurger's picture

Ill pay LIBOR you pay me FIXED, ok?

Fri, 02/10/2012 - 14:11 | 2146712 YC2
YC2's picture

Yeah, and so now does everybodys LIBOR+X% credit cards, mortgages, etc go up?

Fri, 02/10/2012 - 13:45 | 2146551 William113
William113's picture

Has anybody seen John Corzine Libor wants their billion back.

Fri, 02/10/2012 - 13:46 | 2146559 non_anon
non_anon's picture

they are not impervious to street justice

Fri, 02/10/2012 - 13:47 | 2146560 DogSlime
DogSlime's picture

...which has explicitly been leading investors and speculators alike to believe that risk is far lower than where it truly is

Jail the fraudsters, but if anyone has been taken in by these figures since 2008 then they are quite naiive.

The TBTF bailouts and all the shit that has followed - insolvency of Europe, UK, US...  QE, ZIRP... Robosigning... CME manipulation... MF Global... HFT algo wars... so much bullshit that you could fill entire libraries with evidence...

and people/funds make decisions on risk based on information given to them by BANKERS??

Fuck 'em.  It's a shame, but if they're that stupid then they'll have to learn the hard way.  Hopefully they won't be so stupid next time - assuming we survive this.

Yes, people's pensions and savings will get trashed, but people have just been blindly paying money to these fund-managing "experts" on blind faith that they will take care of everything for them.  There's a lesson there too, perhaps.

Fri, 02/10/2012 - 13:56 | 2146623 Yen Cross
Yen Cross's picture


Fri, 02/10/2012 - 13:49 | 2146580 kralizec
kralizec's picture

I'm always ammused by consternation over bank risk when the underwriters of the whole scheme go unreported and unpunished.

Fri, 02/10/2012 - 13:54 | 2146612 Oquities
Oquities's picture

i have adjustable rate bonds that pay me LIBOR plus a fixed coupon, so where do i sign up for that class action suit?

Fri, 02/10/2012 - 14:45 | 2146877 reload
reload's picture

And dont forget the bank owned money managers who earn fees and bonus payments on returns of x% over Libor. I know one such manager who has a hefty kickback on anything above 1% over Libor. He currently has £1.6b of public worker pension money under management (in just the fund he runs at his bank owned firm) the lower libor is the more he earns - and yes he has all the trappings, trophy homes, cars and wife number 2 etc. In fairness though he has been very heavy in Gold (paper) since 08 so his investors have probably done ok. 

The more this goes on the more obvious it gets that the entire game is rigged to rob savers. What little I had left in financial markets is now in more tangible things. Lower end rental property in areas with low unemployment is looking good here in the UK - the problem is that areas with low unemployment tend to have a lot of government jobs, so caution is required.

Fri, 02/10/2012 - 14:02 | 2146670 onlooker
onlooker's picture

And Another big story revealing the criminality of the Financial Overlords. Who protects the vulnerable, as in 99.99% of the Worlds population? This may have been a trickle down and then a trickle up economy. Now it is a flood of misery and the workers, producers, toilers and sweaters, managers, educators, builders, and what is the every man of every economy is being destroyed. If the World economic structure is corrupt from top to bottom and now only the strongest and most ruthless survive, we must not only ask from our Government but Demand from our Government and those who drive the train for relief.

Not only in the form of food stamps and minimal medical aid to survive, but to protect the Nation from the Financial Terrorists that are within our Nation and those who are off shore and actively and greedily seek to destroy us.  Maybe that should be-- that they are in process of destroying us.


We need transparency, we need law enforcement, we need equality, we need protection, we need to unshackled from the Economic Tyranny that is in process of destroying the Freedom of this Nation that so many have sacrificed themselves for the benefit of All—not just the Ruthless.

Fri, 02/10/2012 - 14:06 | 2146674 Downtoolong
Downtoolong's picture

The price of almost everything now, from securities to commodities and real physical goods is linked to financial market indices which are controlled and manipulated by a chosen few. It was all set up under the pretense of risk management, which for the financial industry means being able to collect commissions, fees, and trading margins on $trillions in derivatives that merely get passed around until some sucker somewhere gets stuck with it all.

Fri, 02/10/2012 - 14:07 | 2146683 steve from virginia
steve from virginia's picture

How thoroughly shocking to find out that a few disreputable indiviiduals have overstepped themselves casting discredit onto honorable institution of London banking!

Fortunately there are other, better markets:

 - Energy (J. Aron, Semgroup, Enron, Saudia Arabia, Russia and other big producers, refiners and shippers.)

 - Metals and other commodities (JP Morgan-Chase, MF Global, copper & iron dealers, miners their bankers.)

 - Mortgage banking (Countrywide, Bear Stearns, GSEs and Federal housing authorities, 'home' builders, money-center banks as derivative mills, 'pump and dump' pimps overseas including the same London bankers.)

 - Commerical bankng (Wachovia, BAC, Citi and other money-laundering enterprises.)

 - Sovereign lending (Long-Term Capital Management, Dexia, MF Global, Goldman-Sacks, the Federal Reserve (with negative real interest rates the greatest manipulation of all) the top 100 commercial banks in Europe.)

 - Derivatives (AIG, Lehman, the other Big Five banks, the US Treasury, the Fed, those London bankers again.)

 - Stock markets (the Plunge Protection Team, the central banks, self-dealing businesses)

Let's face it, the entire 'market' idea is a scam. There is no market, only a lie that hopeful fools believe in.

The market is a whorehouse where all the 'girls' are blowup dolls.

Fri, 02/10/2012 - 14:20 | 2146762 Alpha Monkey
Alpha Monkey's picture

It's not the "market" idea that's the scam.  It's the idea of "regulation" that is the scam. 

Fri, 02/10/2012 - 14:07 | 2146692 tony bonn
tony bonn's picture

this is a zh golden moment and why i always come here for enlightenment....however, i am not in the least bit surprised by the revelations, he of rockefeller-mic-yale-cia castigations, which apsersions also include the equally diabolical rothschilds....

Fri, 02/10/2012 - 14:09 | 2146704 Yen Cross
Yen Cross's picture

Does anyone read these stats. DATAQUICK

Fri, 02/10/2012 - 14:42 | 2146858 Schmuck Raker
Schmuck Raker's picture

Calculated Risk does.

Fri, 02/10/2012 - 14:20 | 2146761 Yen Cross
Yen Cross's picture

 Is this asshat on cnbs wearing an invisable Beer Helmut?

Fri, 02/10/2012 - 14:27 | 2146786 bill40
bill40's picture

can somebody answer me a serious question please, I speak as a citizen of the UK. How do you let the city of london get away with this sh1t? They urinate down your neck and tell you it's raining and nobody does a damn thing about it.


These guys will btt f++k the whole world until somebody stops them. Ass Bitchez!

Fri, 02/10/2012 - 14:54 | 2146917 reload
reload's picture

Just dont participate - take away what you can from them, put money in credit unions (there are many good ones) keep only the barest minimum ballance in banks to pay for monthly outgoings, ATM withdrawalls etc.

Beyond that, try to educate others. One of my close family still has substantial funds in `the stock market` I have at least persuaded him to get registered as the owner of his stocks and take possesion of the certificates.

Fri, 02/10/2012 - 14:29 | 2146796 Dermasolarapate...
Dermasolarapaterraphatrima's picture

"Always be cautious with data that supports a particular ideology."


Gwitterman, 2006

Fri, 02/10/2012 - 14:41 | 2146850 El Oregonian
El Oregonian's picture

Think of it as a "LIBOR-tunity" for TPTB to extend the ponzi scheme. BULLISH for the "Castle Kings".

Fri, 02/10/2012 - 14:50 | 2146907 slewie the pi-rat
slewie the pi-rat's picture

how abt an annotated 15-year history of this fuking bullshit?

pamMartens tells it like a BiCh!

Foreclosure Settlement: Just Another Link In a Long Chain of Corruption » Counterpunch

Fri, 02/10/2012 - 14:56 | 2146931 ParkAveFlasher
ParkAveFlasher's picture

Funny, last year I sweated my expired 5-yr. ARM with HSBC because the LIBOR on which its float was based seemed alarmingly LOW.  I refinanced into a 30-year fixed while consciously leaving interest rate points on the table and to my surprise the bank's ARM sales dept. (I suppose not yet informed of the 30-yr refi) sent me a letter touting to refi to another 5-yr ARM because "the LIBOR has never been this low".  Quite a leap leaving points on the table but I took it.  The money I saved on the mortgage (and bills given that I consolidated) I threw into THE FIZZ. 

That was my leap out of the Matrix.

Barely 8 months later I feel like a shark that sniffed blood from fifty miles out and homed in on a right whale carcass basking in the shallows.  God help me if I had been locked into a LIBOR-driven contract.  God help me anyways.  I never took a business course in my life.  I'm not gloating, just saying, what you see and hear are nothing compared to what you smell.

All those awake, you're not dreaming, this is one big beached whale in history, you either take your bite and run or drown in the fetid bloat.

Fri, 02/10/2012 - 14:59 | 2146947 Vince Clortho
Vince Clortho's picture

Not to interrupt, but what time does the plunge protection team make their entrance?

Fri, 02/10/2012 - 15:09 | 2146997 Olympia
Olympia's picture

Loan sharks knew that if they took the dollars printing machines under their control they could suffocate the world ...they could initially suffocate USA and after taking the USA from the Americans, they could move and suffocate the whole world and take the countries from their people.

FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing”...

It cannot be possible but just in the USA for only the last year, more than one million houses were seized. It cannot be impossible but the New World has returned to tents and shelters ..has returned to the ages of Columbus. It cannot be possible that we allow to a few loan sharks looting the toils and the assets of people...


Global Debt Crisis


Fri, 02/10/2012 - 16:18 | 2147382 SilverRhino
SilverRhino's picture

350 trillion dollars?  My God that's 35,000 [YES 35 fucking THOUSAND] Aircraft Carriers (Ford Class) worth of money. 

(Aka enough living space for 175 million people as crewmembers)

Sat, 02/11/2012 - 00:03 | 2148666 Archon7
Archon7's picture

pppffffttt...  350 trillion is nothing.  That's only four times the total US debt, external plus internal.

Fri, 02/10/2012 - 17:05 | 2147581 Scalaris
Scalaris's picture

C'mon Tyler, that's barely a third of a quadrillion; we'll be adding at least 4 more ciphers by 2015.

And do you you expect me to believe that a banker-owned entity manipulates data for some "alleged" self-serving outcome?


Drachma queens.

Fri, 02/10/2012 - 18:03 | 2147778 Spigot
Spigot's picture

Oh, the TdotDdot doth not "alleged". Tis the MSM which used THAT word.

Fri, 02/10/2012 - 17:37 | 2147695 Olympia
Olympia's picture


...the barbarians, who forced beautiful Europe to get down Zeus’“back” and made her a prostitute ...the unworthy Europeans, who in 1945 “took Europe down” from “Mount Olympus” and in 2012 relinquished “enslaved” Europe to the Phoenician loan sharks.

Germans are proved to be the easy solution to breach Europe’s door. Whoever wishes to “set foot” on Europe and demolish it, the only thing he has to do is to “fool” the Germans. For a second time in less than fifty years, Europe’s idiots become the victims of foreigners and they serve their interests at the expense of Europe...



The German traitors of Europe along with the Phoenicians from Asia may have forced Europe to get down from the "back” of the Greek “bull”, but it remains to be seen how they shall pull it through with the “bull”.



Fri, 02/10/2012 - 20:29 | 2148194 Archon7
Archon7's picture

I'm shocked, SHOCKED to learn there's rate-fixing going on here...

Sat, 02/11/2012 - 16:10 | 2149622 onebir
onebir's picture

"that stocks are ... safe for manipulation?" The force in Young Tyler stronger than I thought is!

Young Tyler PROOF-READING the dark force of battles!

But great article we still for thank him much.

Sun, 02/12/2012 - 01:36 | 2150340 o2sd
o2sd's picture

This article was long on boots, but short on numbers.


How many basis points is the risk understated by? 

I assume this means that BBA swap rates are equally useless?

How does one construct a cash curve without LIBOR or BBASWAP? Is there a formula for calculating the missing basis spread from some other money market instrument or CDS?


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