UK Serious Fraud Office To Begin Criminal Probe Into Lieborgate

Tyler Durden's picture


And in the meantime, not a peep about any bank in the US, which is ironic considering JPM, Citi and BofA are BBA member banks, and had among the lowest fixing rates during the period in question, and as Bob Diamond himself said, "everyone did it." One may almost get the impression that US regulators and politicians, gasp, have a motive to not investigate banks for not only criminal but civil malfeasance. And why should they: after all there is unlimited taxpayer money. And if that ends, the US can just print some more.

From Reuters:

Britain's fraud-busting agency on Friday said it had agreed to investigate the Libor interest rate-rigging scandal, which on Tuesday led to the departure of Barclays chief executive Bob Diamond.


"The SFO Director David Green QC has today decided formally to accept the Libor matter for investigation," the Serious Fraud Office said in a brief statement.


The SFO said Monday it would decide within a month whether to press criminal charges over the Libor affair, amid concerns banks understated their borrowing costs to make it appear they were in better financial health than they were.

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Fri, 07/06/2012 - 09:20 | 2591505 Cdad
Cdad's picture

More banker pink slips, please.

Fri, 07/06/2012 - 09:27 | 2591536 CommunityStandard
CommunityStandard's picture

Politicians were in on it.

Fri, 07/06/2012 - 09:39 | 2591584 LMAOLORI
LMAOLORI's picture

I believe that a bunch of them were bought off by Countrywide 

Wall Street Supporters In Congress Unmoved By Libor Probe


Countrywide used VIP program to sway Congress: report

Fri, 07/06/2012 - 11:10 | 2591921 Popo
Popo's picture

Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government.

-- The Declaration of Independence

Fri, 07/06/2012 - 13:54 | 2592644 IrritableBowels
IrritableBowels's picture

“In terms of legislative calendar, it’s late in the clock and there’s not a lot to be done here pre-election,” Mark Calabria, a former Republican Senate Banking Committee aide, said in a telephone interview. “Regardless of what happens at JPMorgan, Congress is leaving at the beginning of August barring the financial system itself actually collapsing. And even then, Congress would probably still take a recess.”


Fri, 07/06/2012 - 09:27 | 2591537 SheepRevolution
SheepRevolution's picture

Criminal investigation my ass. Bring out the guillotine already.

Fri, 07/06/2012 - 10:00 | 2591663 HoofHearted
HoofHearted's picture

Over/under on the number of people getting charged for this?

I'd go with one...and take the under...

Fri, 07/06/2012 - 10:10 | 2591698 Total Collapse
Total Collapse's picture

Barclays for the best fixed rates:



Fri, 07/06/2012 - 09:20 | 2591509 lizzy36
lizzy36's picture

Perhaps the yank banks are being pursued by the "unserious fraud office" know the SEC.

Fri, 07/06/2012 - 09:23 | 2591525 New_Meat
New_Meat's picture

liz: ya beat me to it.  Or is the UK bureaucracy stratified into "serious", "so-so", and "garden variety" fraud offices?

- Ned

Fri, 07/06/2012 - 09:25 | 2591530 Temporalist
Temporalist's picture

In the US it's the "Really We Are Serious This Time And We Mean It (The Very Second We Stop Watching Leprechaun Nipple Porn) Fraud Office"

Fri, 07/06/2012 - 10:03 | 2591678 BeetleBailey
BeetleBailey's picture

it reminds me of Bugs doing it to Yosemite Sam..."cross DIS line!"

The SEC plays Bugs, and also Sam in this case....bunch of turds.

The You Tube video is a hoot!

Fri, 07/06/2012 - 09:45 | 2591609 DogSlime
DogSlime's picture

The "Serious" Fraud Office will spend two years investigating and conclude that a successful prosecution would be unlikely.  They usually cite that the case is too complex for a jury to understand.


Fri, 07/06/2012 - 09:50 | 2591630 dracos_ghost
dracos_ghost's picture

The UK Unserious Fraud Office ... Sounds like a great Monty Python sketch.

Fri, 07/06/2012 - 10:49 | 2591834 Nobody For President
Nobody For President's picture
Lizzy - Plus  1 for 'yank banks'

as in yanking us around

Fri, 07/06/2012 - 09:22 | 2591513 knukles
knukles's picture

Wonder if they have a motive not to investigate?

Understatement defined

Fri, 07/06/2012 - 09:21 | 2591514 Cognitive Dissonance
Cognitive Dissonance's picture

The fix is in......EVERYTHING .

Fri, 07/06/2012 - 09:27 | 2591539 DeadFred
DeadFred's picture

It's a given that the SEC will do nothing, but what's with the Brits? One would be tempted to think that they have a small shred of integrity but I suspect it's really some other motive. I'm at a loss to figure out what it is though.

Fri, 07/06/2012 - 09:31 | 2591559 Temporalist
Temporalist's picture

The last remaining shred of integrity has been re-hypothecated infinitely.

Fri, 07/06/2012 - 09:37 | 2591568 Benjamin Glutton
Benjamin Glutton's picture

Link to PDF of Justice Department agreement dated june 26th/2012 not to prosecute Barclays criminally. Issued by Denis Mcinerney Chief Criminal Division,Fraud Section United States Dept. of Justice signed by Daniel Braun Deputy Chief of same and by Barclays  attorney Steven R. Peikin. crazy!!!


Case closed bitchez!!!

Fri, 07/06/2012 - 09:46 | 2591613 GMadScientist
GMadScientist's picture

"applies only to Barclays, and not to any entities or individuals, including but not limited to employees or officers"

Reading: it's fundamental.

Fri, 07/06/2012 - 10:18 | 2591718 Benjamin Glutton
Benjamin Glutton's picture

the letter does in fact speak for itself...did I say Bob Diamond, anyone else or a particular entity was off the hook?


how many other such release documents remain undisclosed?




Fri, 07/06/2012 - 10:56 | 2591863 GMadScientist
GMadScientist's picture

"Case closed bitchez"

Uh huh. Right.

Fri, 07/06/2012 - 10:44 | 2591817 EscapeKey
EscapeKey's picture

No doubt they consulted the legal team at Barclay's, to get the "best wording possible".

Fri, 07/06/2012 - 09:50 | 2591625 fijisailor
fijisailor's picture

Noticed also there was a rather paltry fine in the letter also

Fri, 07/06/2012 - 09:22 | 2591521 the not so migh...
the not so mighty maximiza's picture

This might be the thing that undermines "reserve currency status"

Fri, 07/06/2012 - 15:35 | 2593017 Panafrican Funk...
Panafrican Funktron Robot's picture

Nah, the spin will be "THIS IS WHY WE NEED GOVERNMENT TO REGULATE INTEREST RATES!!!!", which is clever also because it implies that, say, the Federal Reserve is "government".  

It's a bit like how they treat gambling.  State lottery?  Thumbs up!  A poker game with your friends?  Thumbs way the fuck down!

Fri, 07/06/2012 - 09:23 | 2591522 buzzsaw99
buzzsaw99's picture

serious fraud office. lulz

Fri, 07/06/2012 - 09:36 | 2591572 reload
reload's picture

In fact the SFO is one of the few investigative bodies in the UK that remain `uncaptured` by those they investigate. They have the power to demand and sieze documnts not afforded to everyday investigators and more importantly they delight in taking down a big name or three when they can. Generaly they are very hard nosed and tenacious.

Their problem will be that if they find damning enough evidence to bring a strong case, it will all be handed over to the DPP (department of public prosecution) which is a whitehall department as prone to political pressure and bargaining as any. A strong case getting to see the light of day in court may never happen, regardless of what the SFO uncover.

Fri, 07/06/2012 - 09:39 | 2591587 Unprepared
Unprepared's picture

What if SFO started by investigating the DPP and said politicians? It is certainly more serious than playing with rates.

Fri, 07/06/2012 - 12:19 | 2592234 Diplodicus Rex
Diplodicus Rex's picture

"In fact the SFO is one of the few investigative bodies in the UK that remain `uncaptured` by those they investigate."

You must be living in a parallel universe from the one in which I live. The SFO in my country (UK) is the most distrusted and complicit of all government departments for the very reason that it is supposed to be the strongest anti-fraud agency and folds without prosecution every case it ever looks at.

Fri, 07/06/2012 - 09:23 | 2591523 LeBalance
LeBalance's picture

Jedi Ben Shalom mind trick: "it is not in anyone's best interest for any regulator to not be watching tranny porn 24/7/365."

Regulating masses: "we do obey divine master!"

Fri, 07/06/2012 - 09:25 | 2591528 Taterboy
Taterboy's picture

Since when has fraud become "serious".

Fri, 07/06/2012 - 10:45 | 2591818 TrainWreck1
TrainWreck1's picture

Only when it can impact elections or campaign contributions.


Fri, 07/06/2012 - 09:25 | 2591529 Bill D. Cat
Bill D. Cat's picture

John Cleese no doubt in charge .

Fri, 07/06/2012 - 10:02 | 2591673 HoofHearted
HoofHearted's picture

I'd take Cleese or Graham Chapman or any of them over the Muppets that are in charge of most of these departments...

Fri, 07/06/2012 - 09:27 | 2591533 Bangin7GramRocks
Bangin7GramRocks's picture

Reagan got rid of our serious fraud office. He said it WAS the problem. Or something like that. Crazy. Dumb. Actor.

Fri, 07/06/2012 - 09:37 | 2591578 GMadScientist
GMadScientist's picture

"Reaganism replaced Enlightenment thinking with the corrupted Romanticism that portrays free-market purism as an article of religious faith that is the real meaning of America. The answer to any of the economic challenges of the twenty-first century is to do nothing. Cut taxes, eviscerate all regulation of private enterprise, and trust the market to guide our fates."

Never mind that the doddering fuck didn't even walk what he talked.

Fri, 07/06/2012 - 09:43 | 2591604 GeneMarchbanks
GeneMarchbanks's picture

Doesn't matter, that was the propaganda line for the EM and LatAm countries. Typical Western hypocrisy or calculating imperialism ploy?

Fri, 07/06/2012 - 09:48 | 2591619 GMadScientist
GMadScientist's picture

"FreedomFighters(t) wanted: apply within"

Fri, 07/06/2012 - 09:54 | 2591641 midgetrannyporn
midgetrannyporn's picture

Raygun is dead and we're all better off for it.

Fri, 07/06/2012 - 09:29 | 2591547 Stoploss
Stoploss's picture

Im pretty sure the gen pop will take care of this on their own as has been done in the past.

Fri, 07/06/2012 - 09:31 | 2591554 q99x2
q99x2's picture

It is conspiracy by politicians and bankers to commit atrocities against the elderly, unemployed and law abiding citizens. They need to be locked up NOW!

Fri, 07/06/2012 - 09:31 | 2591556 GeneMarchbanks
GeneMarchbanks's picture


Fri, 07/06/2012 - 09:32 | 2591563 mberry8870
mberry8870's picture

At this time, a senior Barclays Treasury manager informed BBA in a telephone call that it

had not been reporting accurately, although he noted that Barclays was not the worst offender of

the panel bank members. "We're clean, but we're dirty-clean, rather than clean-clean." The

BBA representative responded, "no one's clean-clean." The senior Barclays Treasury manager

replied "no, because ofthe very fact of what happened to us ... We were clean ... the market ...

reacted accordingly. And that's why we stepped away again." The senior Barclays Treasury

manager was referencing the market speculation about Bat'clays' high LIBOR submission in

early fall 2007. The BBA representative indicated that he understood what happened to any

banle that moved against the trend of lower submissions. The same senior Barclays Treasury

manager had a similar conversation with the FSA during a surveillance call regarding market

liquidity conditions

Fri, 07/06/2012 - 09:32 | 2591564 moriarty
moriarty's picture

Paper tiger, they are as much use as a chocolate fireguard.

Spend millions on investigations and hardly ever get a mister medium never mind a mister big.

Fri, 07/06/2012 - 09:35 | 2591569 Pumpkin
Pumpkin's picture

Do they have a not so serious fraud department.  I would think, at least to any victim, that all fraud would be serious. 

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