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Putting BoE Tucker's Call To Diamond In Context

Tyler Durden's picture




 

By now the world and their cat knows that Barclays' Lie-bor submissions were 'too high' for the powers that be in Whitehall and we suspect that given any chance or an 'out' to massage the numbers in order to appear stronger) just as they headed into a financing, the Barclays execs figured 'why not?'. For some context on just how much this mattered - quite a significant amount as it turns out - and upon which the basis of many bullish theses were based at the time (despite the fact that CDS markets were gapping wider and screaming reality), Bloomberg's Chart of the Day shows the huge variations from the BBA's LIBOR relative to the UK bank submissions (most notably Barclays) around the time of Paul Tucker's intervention.


 

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Thu, 07/05/2012 - 15:59 | 2590011 RockyRacoon
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So correlation does imply causation?  I'm on board with that. 

I'd never seen a smoking gun graphed until now.

Thu, 07/05/2012 - 16:05 | 2590035 LawsofPhysics
LawsofPhysics's picture

No shit.  Where are the regulators?  So basically the conversation was; "Bob, do what we tell you to do or else...".  Blatant conspiring to rig the lending rates.

Guess what guys, there is a very real cost for capital.  Time to pay the fucking piper, bitchez.

Thu, 07/05/2012 - 16:13 | 2590069 Dr. Richard Head
Dr. Richard Head's picture

So Diamond was charting his own, more realistic I might add, path on Libor, he bows to the BOE's pressure, and Diamond is the one taking the heat.  Crazy surreal. 

This should show the other criminals in the banking cabal that they are dispensable little serfs too when push comes to shove.

Thu, 07/05/2012 - 16:27 | 2590117 Troll Magnet
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By now the world and their cat knows that Barclays' Lie-bor submissions were 'too high' for the powers that be in Whitehall...

Tyler, please stop this nonsense.  America is currently too busy wondering what's going to happen to Tom & Katie.  Hell, I bet you, Tyler, a silver eagle that 90% of Americans don't even know what the hell Libor is.  

Tyler: Hey Americans, did you hear about this LIBOR manipulation?

Typical American: Who in hell manipulated labor now?

Thu, 07/05/2012 - 16:31 | 2590125 Fukushima Sam
Fukushima Sam's picture

I'm sure the banks were just doing God's work to keep us all safe and sound in our media cocoons.

Thu, 07/05/2012 - 16:58 | 2590168 Joe Sixpack
Joe Sixpack's picture

The second drop @ beginning December 2008: Was that an informal breakfast with Bernanke?

Thu, 07/05/2012 - 16:33 | 2590129 vast-dom
vast-dom's picture

one could almost argue that Diamond was in fact a victim, to a point. but alas he serves as the perfect fall guy for the bigger criminals at large. fuck us all.

Thu, 07/05/2012 - 16:39 | 2590138 Dr. Richard Head
Dr. Richard Head's picture

Visions of a coyote chewing off its own leg comes to mind.  Crooks have loyalty to no one but themself.  This should play out well, but Diamond will now, as he implicated the Queen so-to-speak, have an unfortunate chain of events befall him.

Thu, 07/05/2012 - 17:19 | 2590214 Hmm...
Hmm...'s picture

one could almost argue that Diamond was in fact a victim, to a point

Hardly.  the schmuck and the craptastic bank were manipulating Libor for 5+ YEARS before this phone call.  Perhaps they were manipulating Libor less than their colleagues at this particular time period.  Perhaps they were manipulating Libor less than their colleagues throughout the entire 2000's.  But what is clear is that Barclays was manipulating Libor for 5+ years before this phone call, sometimes down, sometimes UP too. They are no victim

All that said, every other major bank was manipulating Libor as well.  All the banks should be shuttered, their employees should all be in prison after every cent is clawed back.  The BofE is unlikely to be clean here.  Clearly they were wink-wink, nudge-nudging Libor lower during the crisis time period.  Unsure what the heck the were doing in the early 2000's when this was going on.

But let's dispense with the "Diamond was a victim".  He's a class a loser who is trying to pull all the other losers down with him.  I wish him luck in his endeavor.  Couldn't happen to a better cabal. 

Thu, 07/05/2012 - 18:38 | 2590372 DogSlime
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He got very rich from his time with Barcap.  He's just as rich now.  My heart fails to bleed for him.  If he were on fire, I would be unable to piss.

Thu, 07/05/2012 - 21:06 | 2590665 anonnn
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The British Bankers Assoc is just nother union, doing what is its membership agrees to do.

Ditto the Union of Central Banks.

Ditto the Federal Reserve Banks System.

Ditto, ditto, ditto.

Some unions are stronger than others.

The best criminals salivate over privileges and freedoms to cause injustice.

Theirs are the most pathological unions and of least benefit to humankind.

Money and ControlPower v. Fairness and Truth.

Thu, 07/05/2012 - 16:20 | 2590091 Stoploss
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Now you know why CRE didn't blow up, and sub prime stayed "contained".

 

Thu, 07/05/2012 - 16:01 | 2590022 Benjamin Glutton
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The LIBOR lies go back many years...why all the focus on Oct. 2008 when the lies go back much further?

Thu, 07/05/2012 - 16:11 | 2590063 RockyRacoon
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They got Al Capone on tax evasion.   Various States issue Marijuana tax stamps.  You can go to jail for failure to purchase the tax stamps for your crop and for not paying the taxes on your gains from selling it.  That's what they can get you on rock solid.  Same here it seems.

Thu, 07/05/2012 - 16:16 | 2590083 Nobody For President
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In California, it is (some of) the counties that issue 'tax plant tags' to make the grow 'legal'.

The Feds, however, can (and do) still come by to rip them off and bust you for possesion, growing for sale, etc, despite the election promise by our current POTUS to not do that any more...

Thu, 07/05/2012 - 16:13 | 2590070 bigwhiffa
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Because we have very bad short term memories in this country.

Wait...

What was I talking about again?

Thu, 07/05/2012 - 16:15 | 2590077 Dr. Richard Head
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I think we were discussing Tom Cruise's divorce. 

Thu, 07/05/2012 - 17:10 | 2590194 Not Too Important
Not Too Important's picture

And the mysterious 33. Is he in some kind of cult?

Thu, 07/05/2012 - 16:10 | 2590060 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture
Japanese Parliamentary Investigation Concludes Fukushima Was a Manmade Disaster, Bloomberg Reports

http://economicaldepression.blogspot.com

Thu, 07/05/2012 - 16:59 | 2590170 Panafrican Funk...
Panafrican Funktron Robot's picture

That kooky George Washington!  Always with his pie in the sky conspiracies!!

Thu, 07/05/2012 - 17:09 | 2590190 Not Too Important
Not Too Important's picture

As you breathe the radioactive air and drink the radioactive water . . .

Unless you forgot the /sarc/ tag . . . Sometimes it's hard to tell here.

Thu, 07/05/2012 - 17:14 | 2590203 smiler03
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"Japanese Parliamentary Investigation Concludes Fukushima Was a Manmade Disaster"

 

No Shit!!! And there was me thinking that Tuna Fish built those Nuclear Reactors, duh!

Thu, 07/05/2012 - 16:11 | 2590062 Goldilocks
Goldilocks's picture

Keiser Report: Bankers Going Ultra-Violent (E310)
http://www.youtube.com/watch?v=01WI5rwS7JA (25:46)

Thu, 07/05/2012 - 16:13 | 2590068 Nobody For President
Nobody For President's picture

Hey, isn't summer supposed to be the quiet time for investing and stocks and bonds and shit?

Thu, 07/05/2012 - 16:14 | 2590071 chdwlch1
chdwlch1's picture

Looks like Tucker put a call into Lloyd's and RBS as well...shocking, just shocking!

Thu, 07/05/2012 - 16:23 | 2590097 duckarooni
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!

Thu, 07/05/2012 - 16:22 | 2590098 duckarooni
duckarooni's picture

What a load of hogwash. Massaging libor straight after Lehmans collapse was definitely the lesser of two evils. Congratulations all round for avoiding financial armageddon in 2008. A job well done by Tucker. Everybody who disagrees doesn't know shit.

Thu, 07/05/2012 - 16:31 | 2590127 spooz
spooz's picture

But when the moral hazard means banksters manipulating markets/price fixing to make their positions profitable at the expense of the muppets who think they are participating in free markets, armageddon may have been best.  A reset is something you can move beyond.  Captured markets are with us forever.

Thu, 07/05/2012 - 16:34 | 2590130 Fukushima Sam
Fukushima Sam's picture

Confidence of a fair market is indeed highly overrated... until it is lost.

Thu, 07/05/2012 - 16:37 | 2590136 Not Too Important
Not Too Important's picture

Only to kill it five years later. Isn't that the argument? Kick the can and make it worse, or clean it up when you find it?

If I have cancer on my arm that might kill me, should I lose the arm? Or take pain killers, let the cancer spread, and kill me five years later.

This isn't rocket science. It sure isn't responsible governing. This is going to take down the whole system. Trust is gone now. So who DKS?

Thu, 07/05/2012 - 16:53 | 2590158 Village Idiot
Village Idiot's picture

"Congratulations all round for avoiding financial armageddon in 2008"

The suggestion is that this manipulation has been going since prior to 2008.  If true, what is the excuse?  Always an excuse...

Thu, 07/05/2012 - 17:02 | 2590177 Panafrican Funk...
Panafrican Funktron Robot's picture

2008 wouldn't have been an "armageddon" dipshit.  Armageddon is what's coming because we didn't take our medicine while we still had the chance.

Pretty much anyone that says "A job well done by Tucker", in any situation, referring to any male with the name "Tucker", is just beyond the fucking pale.

Thu, 07/05/2012 - 17:17 | 2590209 francis_sawyer
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Yeah, he can really bend it like Beckham (in 'can kicking' terms)...

Thu, 07/05/2012 - 16:23 | 2590099 teljames
teljames's picture

smoking gun........

 

Thu, 07/05/2012 - 17:36 | 2590248 Cursive
Cursive's picture

Totally a coincidence.  At this rate, they're going to have to release some internet super virus or attack Iran to take the attention off of this scandal.

Thu, 07/05/2012 - 18:26 | 2590347 Ted Baker
Ted Baker's picture

BEHIND CLOSED DOORS:- BOTH BOE AND FSA WERE INVOLVED IN THE LIEBOR MANIPULATION TOGETHER WITH OFFICIALS FROM WHITEHALL AND FOR MANY MONTHS DURING THE CRISIS AND FOR YEARS THEREAFTER BY PUTTING PRESSURE ON TOP UK FINANCIAL INSTITUTIONS HOWEVER THEY DECIDED TO SINGLED OUT BARCLAYS IN PARTICULAR DIAMOND UNTIL THE PAIN OF THE CRISIS, UK FINANCIAL SYSTEM AND UK ECONOMY WAS TO SEVERE TO BEAR FURTHER.... THEN CAME SUDDENLY THE CALL OF MR TURKEY - BEG YOU PARDON - MR TUCKER

Fri, 07/06/2012 - 04:27 | 2591077 Rikki-Tikki-Tavi
Rikki-Tikki-Tavi's picture

To me it just look like depositors acting rational. At the time Lloyds (pre the HBOS acquisition) and HSBC were perceived as the safest UK banks so they surely had significant inflow of cash from depositors in the period following Lehman (just like Barclays probably had significant outflow from depositors as they arguably were perceived as a more aggressive bank). Doesn't this just reflect the different funding situations this flow created for the various banks?

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