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The World's Biggest Bank Just Got Thrown Into The Lieborgate Mess

Tyler Durden's picture





 

When on Friday news broke that German regulator BAFIN (which is just like the SEC except that it also regulates, investigates and actually prosecutes, instead of just watching porn all day) was launching a probe of the biggest bank in Europe, and actually, make that the world, Germany's Deutsche Bank, the shares took a quick, brisk hit, sliding 5% with everyone anxiously expecting to find out just which bank will follow Barclays into the scapegoat abattoir (because nobody had any clue Liebor manipulation was going on until a week ago). Yet while external inquiry into banks is to be expected (everywhere but in the US of course, because in the US no banks manipulated anything. Ever) as a proactive act on behalf of regulators to cover their back, things get a little more tricky when the bank itself admits there was an obvious supervision problem. From Reuters: "Two Deutsche Bank employees have been suspended after it used external auditors to examine whether staff were involved in manipulating interbank lending rates, German magazine Der Spiegel reported, citing no sources." Now what can possibly go wrong if the biggest bank in the world, with just shy of $3 trillion in "assets", which just happens to have a 1.68% Core Tier 1 ratio, is suddenly thrust smack in the middle of the scandal that the Economist just aptly named the finance industry's "tobacco moment"?

From Reuters:

A spokesman for Deutsche Bank on Sunday declined to comment on the article, referring to its quarterly report, which said it has received subpoenas and requests for information from U.S. and European authorities in connection with setting interbank rates.

 

On Friday, people familiar with the matter told Reuters that Germany's markets regulator has launched a special probe into Deutsche Bank over suspected manipulation of interbank lending rates.

 

Investigators in the United States, Europe and Japan are examining more than a dozen big banks over suspected rigging of the London Interbank Offered Rate (Libor).

 

Britain's Barclays has been the only bank to admit wrongdoing, agreeing last week to pay a fine of more than $450 million.

 

The Libor rates, compiled from estimates by large banks of how much they believe they have to pay to borrow from each other, are used to determine interest rates on trillions of dollars worth of contracts around the world.

 

A spokesman for Frankfurt-based private bank Metzler said one of its investment companies has joined a number of class action suits in New York against banks accused of manipulating Libor rates.

 

"This is a standard procedure," he said.

And while all of that is fun and stuff, can we just fast forward to the moment where Jamie Dimon once again tells his Congressional muppets that LIeBOR is meaningless, and to look for their Christmas Libor-adjusted donation checks in the next few months.

 


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Sun, 07/08/2012 - 15:18 | Link to Comment SheepRevolution
SheepRevolution's picture

Ladies and Gentlemen! Llllllllets get ready to ruuumbleeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!!!!!

Sun, 07/08/2012 - 15:28 | Link to Comment HoofHearted
HoofHearted's picture

Luckily, DeutscheBank was able to determine that it was only those two rogue traders who did all the manipulation of the LIBOR. This means that DB, and all the other banks, can go back to doing God's work while those two rogue traders rot in hell.

Sun, 07/08/2012 - 15:34 | Link to Comment Popo
Popo's picture

Exactly.  We will now see two pawns publicly flogged.   The only possible hope is that they pick the wrong pawns, and those pawns sing to the media in ways which even their masters hadn't imagined.  But the latter is highly unlikely.  This is afterall, the cartel that took down Spitzer and DSK with ease.  

Throwing two pawns into the abyss will most likely be cake.  

The question I have is:   How will this affect the larger, more pressing Euroland saga with respect to Germany...  Interesting developments....

Sun, 07/08/2012 - 15:42 | Link to Comment Troll Magnet
Troll Magnet's picture

but surely shirley these guys wouldn't manipulate anything else, like gold and silver, would they???

Sun, 07/08/2012 - 16:32 | Link to Comment Peter Pan
Peter Pan's picture

Quick. Can someone tell me without thinking what ISN'T manipulated?

Sun, 07/08/2012 - 16:58 | Link to Comment samttmfw
samttmfw's picture

Your portfolio.

Sun, 07/08/2012 - 18:54 | Link to Comment ndotken
ndotken's picture

Let's not feel sorry for the pawns ... TPTB will ensure that the two pawns get well compensated for their time in a private white-collar country club (aka minimum security prison).  Then once all the muppets feel comfortable that justice has been served, we can all get back to business as usual.

Sun, 07/08/2012 - 18:36 | Link to Comment GOSPLAN HERO
GOSPLAN HERO's picture

Micah 6:11 Shall I acquit a man with dishonest scales, with a bag of false weights?

Sun, 07/08/2012 - 23:10 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Speaking of laying low, where the FUCK IS CONZINE?

Sun, 07/08/2012 - 18:34 | Link to Comment GOSPLAN HERO
GOSPLAN HERO's picture

Deuteronomy 25:16 For the LORD your God detests anyone who does these things, anyone who deals dishonestly.

Sun, 07/08/2012 - 23:18 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Douchebagerous Hondaridecus 7:77  For the prawns shall pay a price! For whosoever challenges SNOGON in the Land of Moron shall not have two prawns, but many!

 

Edit:  Fuckit! I'm starting MY OWN religion.  L.Ron Hubbard, Jesus, Mohammed, Joseph Smith, Buddha, Rael, Jones, Heaven's Gate.  Man, what a bunch of shysters!

 

(Junk away!)  Robertson, Osteen,..................

Sun, 07/08/2012 - 15:50 | Link to Comment Kimo
Sun, 07/08/2012 - 15:55 | Link to Comment James_Cole
James_Cole's picture

There's no way it was more than a couple traders, this is an isolated event. Tell the guilty parties not to do it again and let our free market capitalist loving banking system do the rest, everything is fine. 

Sun, 07/08/2012 - 16:30 | Link to Comment DeadFred
DeadFred's picture

In addition to the possible fines I wonder how much they have to pay the traders to allow themselves to be thrown under the bus. Traders make a bit of change so it won't be cheap. And since it has to be under the table it won't be as easy to write it off. Too bad they didn't have any Nigerian traders, much cheaper scapegoats.

Sun, 07/08/2012 - 17:55 | Link to Comment WVO Biker
WVO Biker's picture

This is just to explain what MFs they are, in the 90s I was a customer of DB in Germany, and to open a letter of credit they asked me to borrow at 10% from them and deposit at 2% with them to fund my Letter of Credit. Of course I did not and they still opened the LC. Closed account soon after. 

Sun, 07/08/2012 - 16:39 | Link to Comment world_debt_slave
world_debt_slave's picture

ggg guns, gold and a getaway plan

take your money out of the commerical banks and put them in coummunity credit unions.

Crash the TBTF banks!

Sun, 07/08/2012 - 15:20 | Link to Comment PontifexMaximus
PontifexMaximus's picture

Business as usual, move on! Nothing will happen, algos are working as always, including DB ones!

Sun, 07/08/2012 - 15:22 | Link to Comment Motorhead
Motorhead's picture

Prost, ihr Säcke!

Sun, 07/08/2012 - 15:27 | Link to Comment blindman
blindman's picture

i just don't understand, for one thing, all the cynicism.
sheesh.
is it just an emotional left over, "barbaric relic",
of a time when the species lived intimately with scarcity accompanying each dawn and green shoot?

Sun, 07/08/2012 - 16:41 | Link to Comment GernB
GernB's picture

Yea it's not like people have to work everyday any more, they just work out of the goodness of thier hearts.

Sun, 07/08/2012 - 17:07 | Link to Comment blindman
blindman's picture

the message is clear, work is not nearly enough,
people are required to borrow even harder, much harder, for this thing to float. can we do it? therein
lies the answer me thinks.

Sun, 07/08/2012 - 15:24 | Link to Comment Snakeeyes
Snakeeyes's picture

There is something like $40 trillion in oblgations geared to LIBOR. And The Fed / Bank of England are the biggest manipulators of LIBOR.

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

It is more fun to blame the banks for everything, but at some point we have to start asking whether The Fed should be trying to manipulate interrest rates.

Or whether governments should interfering at such staggering levels. It is gettting out of control.

Just asking.

Sun, 07/08/2012 - 15:26 | Link to Comment Tyler Durden
Tyler Durden's picture

Make that over $500 trillion and you are correct: As Lie-Bor Unwinds, Just How Much Is At Stake?

Sun, 07/08/2012 - 15:35 | Link to Comment iDealMeat
iDealMeat's picture

FED and BoE certainly have contributed / created the mess. But, the only way you get into problems of 100T ++ is the average consumer.

Thanks to Fractional Reserve banking, anyone and everyone who uses credit cards, or has borrowed for any reason is responsible for inflating the problem of unmanageable debt.

Every second of every day we all contribute to the problem...  And it will not end..  ever.

Sun, 07/08/2012 - 15:56 | Link to Comment Landrew
Landrew's picture

I don't think you understand Libor rates or what they do. It's not the borrowers who were screwed it's WE the savers that were screwed! Rates for borrows were held low. Savers received low returns. I am sueing Tiaa-Cref for holding the money market rates on part of my funds lower then fair! I encourage all of you to sue your pension funds for fraud on money market returns! This costs me tens of thousands over the years! Sue the bloody assholes!

Sun, 07/08/2012 - 16:42 | Link to Comment iDealMeat
iDealMeat's picture

I admit my understanding on LIBOR is rudimentary because I really haven't cared enough to research it. However, what I'm saying is that there is $500T in obligations borrowed and CDO'd into existence. That's been levered into over a Quadrillion in derivatives.  It is what it is. LIBOR rates are manipulated to entice more borrowing.. Everything is "cooked" or manipulated with regard to banks.. And you really have no other choice but to play the game.

 

PS:  I'd suggest not suing Tiaa-Cref.. You're just going to lose more money on lawyers.. Pull your money and tell them to f-off..

Save yourself some stress. Legal system is just as bad as banking.

Sun, 07/08/2012 - 16:48 | Link to Comment DeadFred
DeadFred's picture

Sad, but it's a bullish time to be a lawyer.

Sun, 07/08/2012 - 16:23 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

Let's mark this moment as the time we started using quadrillions.

So then half quadrillion is what's at stake.

 

Sun, 07/08/2012 - 18:50 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

let's make that a whole quadrillion, ok, 0_K?

we can just assume the bottom half is already underwater, at this point?

Sun, 07/08/2012 - 15:36 | Link to Comment bdc63
bdc63's picture

Snakeeyes said: "It is getting out of control"

No.  It done got outta control YEARS ago.

Sun, 07/08/2012 - 15:54 | Link to Comment JR
JR's picture

In the Roman Empire, Snakeeyes, one could remark that all roads to Rome. In the Central Bank Empire, all roads lead to the Federal Reserve, aka The New York Federal Reserve Bank and its private owners. They’re the underwriters of last resort. And their paymaster, the American people.

The buck doesn’t stop at the Fed; it starts there.

Sun, 07/08/2012 - 15:28 | Link to Comment caimen garou
caimen garou's picture

the question is what big banks are not involved in this scandal, NONE

Sun, 07/08/2012 - 16:44 | Link to Comment rufusbird
rufusbird's picture

Support your local Credit Union!

Sun, 07/08/2012 - 15:30 | Link to Comment The Reich
The Reich's picture

Why am I not surprised about German Banksters?

Sun, 07/08/2012 - 15:31 | Link to Comment williambanzai7
williambanzai7's picture

HAZARDOUS TO YOUR FINANCIAL HEALTH

Sun, 07/08/2012 - 17:07 | Link to Comment jonjon831983
jonjon831983's picture

Um these aren't regulation packages.  You gotta show on the packaging the hazards of using LieBoR (Now with CoolFed flavour)

Sun, 07/08/2012 - 19:17 | Link to Comment nmewn
nmewn's picture

Come to where the fix is in, come to Lie Bor country!

Sun, 07/08/2012 - 20:58 | Link to Comment mick_richfield
mick_richfield's picture

Those things'll kill you.

Sun, 07/08/2012 - 15:32 | Link to Comment Anarchyteez
Anarchyteez's picture

All the lies have become boring.

Sun, 07/08/2012 - 15:34 | Link to Comment Amish Hacker
Amish Hacker's picture

This LIBOR story is going to serve as a powerful indicator of where we really are as a society. If the investigations lead to criminal charges, trials, punishment and major reforms (something at least on the scale of the S&L debacle), great. There may be hope for us yet.

But if this turns into a total whitewash (The money seems to have vaporized... It was just a few bad apples... Minor changes will keep this from ever happening again...We really must move forward and put this unfortunate episode behind us...etc, etc.) then forget it. We're hosed.

But either way, we'll know.

Sun, 07/08/2012 - 16:06 | Link to Comment Hulk
Hulk's picture

I think we already know...

Sun, 07/08/2012 - 17:19 | Link to Comment newworldorder
newworldorder's picture

+1  -  Most know that they dont want to know.

Sun, 07/08/2012 - 16:18 | Link to Comment Temporalist
Temporalist's picture

Did you say soemthing about TomKat?  I won't follow you on twitter then.

Sun, 07/08/2012 - 15:35 | Link to Comment q99x2
q99x2's picture

Libor manipulation is an industry defacto standard and represents the highest accomplishments of the world's most innovative and brightest--those chosen to do God's work.

Sun, 07/08/2012 - 15:54 | Link to Comment El
El's picture

God's work. Is that what they are calling it these days?

Sun, 07/08/2012 - 17:02 | Link to Comment Ropingdown
Ropingdown's picture

God's work.  They aren't wrong.  The God is Plutus, the God of wealth.  I assume they mean their own wealth, not ours.

Sun, 07/08/2012 - 18:02 | Link to Comment smiler03
smiler03's picture

"Doing God's Work" - attributable to Lloyd Blankfein from November 2009.

http://www.youtube.com/watch?v=FzjKCR7vsFc

Sun, 07/08/2012 - 15:35 | Link to Comment I am Jobe
I am Jobe's picture

I think I need a drink or two or three and some hookers.

 

No sugar coating here. Yeah keep on buying that fucking app. No end in sight.

The Collapsing US Economy and the end of the world

http://www.paulcraigroberts.org/2012/07/08/the-collapsing-us-economy-end...

Sun, 07/08/2012 - 15:40 | Link to Comment FieldingMellish
FieldingMellish's picture

Well I am shocked, shocked. /sarc

Sun, 07/08/2012 - 15:41 | Link to Comment grunk
grunk's picture

Ich bin ein crook.

Sun, 07/08/2012 - 15:42 | Link to Comment TrainWreck1
TrainWreck1's picture

Eventually all banks will be tied in, and mass punishment will be impossible, because we NEED banks to survive - right?

 

Sun, 07/08/2012 - 15:55 | Link to Comment thad78
thad78's picture

Correct, correct, & sadly, correct.Unless,of course, the Second Coming is upon us & a few Christian bankers repent quickly

Sun, 07/08/2012 - 16:56 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

Need banks to survive? Not me for the past 12 years.

Sun, 07/08/2012 - 23:52 | Link to Comment Bringin It
Bringin It's picture

No worries, promises can be extracted from/ imposed on the citizens to cover everything.

Sun, 07/08/2012 - 15:45 | Link to Comment fonzannoon
fonzannoon's picture

Have their been any notable moves in LIBOR rates since this mess started unraveling? I would think that if it ever got out that every bank was actively keeping gold down for example or treasury yields, both would start to climb, if not explode upward.

Sun, 07/08/2012 - 15:45 | Link to Comment wagthetails
wagthetails's picture

We are all living in HY-BRAZIL. Everything we be fine move along.
Classic movie
http://www.youtube.com/watch?v=d8IBnfkcrsM&feature=youtube_gdata_player

Sun, 07/08/2012 - 15:46 | Link to Comment AnAnonymous
AnAnonymous's picture

The Germans are behind the scenes

Sun, 07/08/2012 - 16:52 | Link to Comment sablya
sablya's picture

The SQUID is behind the scenes.  Goldman Sachs is behind everything and that means that the Fed is complicit.  That makes this a much bigger problem than has come to light so far.  The overall damages is likely to mount into the trillions and everyone who has ever had money in a bank account has suffered because of the rate fixes.  People should be up in arms over this but even here, at ZH, where intelligent people can be found, people admit to not understanding LIBOR.

Sun, 07/08/2012 - 15:48 | Link to Comment FranSix
FranSix's picture

Jerome Kerviel aught to be looking to get off the hook for fiddlin' with the algos if its an industry wide problem.  Banks fixing rates and prices??  Unthinkable!

Sun, 07/08/2012 - 15:48 | Link to Comment Jake88
Jake88's picture

Most of the world does not even know what libor is. I have only a vague idea. I have zero understanding of a crime here or of anyone being harmed in anyway by libor fixing. I was under the impression libor rates were fixed anyway.

Sun, 07/08/2012 - 15:54 | Link to Comment Catullus
Catullus's picture

Anyone with a money market fund has been screwed because of this. That's like anyone with savings account now. They're actually not savings accounts at most of the major money center banks. They're MM funds

Sun, 07/08/2012 - 16:25 | Link to Comment Temporalist
Temporalist's picture

Yes think of it this way jake88.  You could have been making .0x on your savings but a few wealthy people said "I need moar bonus!" and POOF you made .00x on savings and they bought a yacht while you couldn't save enough up for a new spiderman towel.

Sun, 07/08/2012 - 15:50 | Link to Comment Catullus
Catullus's picture

Bank on bank crime.

Just blame the CBs. A central bank is nothing but a banking cartel anyway. It's not this is even remotely surprising. It's in the nature of what a banking cartel does. Why form it if you're not going to manipulate prices?

The business model of western finance is fraud. It's rotten to its very core.

Sun, 07/08/2012 - 15:50 | Link to Comment I am Jobe
I am Jobe's picture

So far just like the Blah Blah President nothing to be concerned about. More talk and talk and then the news just vanishes. I

Sun, 07/08/2012 - 15:51 | Link to Comment Vegetius
Vegetius's picture

Will something be done, will justice prevail. The answer of course is no this is the tip of the iceberg, no doubt something will be done but the rot grows and the centre cannot hold.

"When buying and selling are controlled by legislation, the first thing to be bought and sold are legislators."
-- P. J. O'Rourke

But lets not be too upset, enjoy the show, There will be blood, sooner or later.

Sun, 07/08/2012 - 15:52 | Link to Comment Jake88
Jake88's picture

Will someone please explain the crime!?

Sun, 07/08/2012 - 16:01 | Link to Comment Catullus
Catullus's picture

Fraud.

Both de jure and de facto.

The misrepresented the rate both internally and externally. Externally is probably not as big of deal. It certainly has a big impact. Internally the bonuses are based off the risk adjusted profit. If a bank is playing fast and loose with their reported funding cost, you can bet they've issued bonuses off a faulty risk adjustment. Fraud.

Sun, 07/08/2012 - 15:55 | Link to Comment cardis
cardis's picture

easy listening

3.47 popcorn&rye

 

http://www.youtube.com/watch?v=hx16a72j__8

 

Sun, 07/08/2012 - 15:59 | Link to Comment Landrew
Landrew's picture

Sue your pension funds or banks holding your money market accounts for FRAUD! They held your returns lower cheating you on lower than market rates! It's time to sue banks and funds that held savers to no returns on investment! Sue the bloodly bastards! Write your bank/fund tomorrow and tell them you are sueing them!

Sun, 07/08/2012 - 16:03 | Link to Comment francis_sawyer
francis_sawyer's picture

This is so fucked because, as bad as it is, about 1 in 10,000 understand it (& that's generous)...

That's why the bankers have humanity by the balls... I just keep waiting for nature to intervene (because corrupt politicians & legislators sure won't)...

Sun, 07/08/2012 - 16:07 | Link to Comment RobotTrader
RobotTrader's picture

What is the big deal about LIBOR skimming?  Sheesh, rates are already rock bottom, a few bips here and there barely matters.

Sun, 07/08/2012 - 19:58 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

i hear that!  at one point everybody on the planet knew then entire libor thing was bullshit b/c the "london inter-banksters" would not lend each other ten cents overnight for a long time, but put up a rate which people could use as if the banks had been lending

or did i dream that? 

had a family member with a loan tied to libor:  hello!  wtf?  over. 

roger that, wtf.  wtf?  over and out.

Sun, 07/08/2012 - 20:31 | Link to Comment Absalon
Absalon's picture

The big deal is:

1)   that there will be investors who bet big bucks on derivatives based on Libor and some of them will have lost big bucks as a result of the fraudulent calculation of Libor and they may sue everyone involved; and

2)   the last bits of credibility for the banking system (and the banking regulators) just went out the window.

Sun, 07/08/2012 - 21:17 | Link to Comment Landrew
Landrew's picture

What about solar stocks? I took your recomendations and what didn't go bankrupt are now penny stocks.

Sun, 07/08/2012 - 16:08 | Link to Comment blindman
blindman's picture

07 July 2012
Weekend Viewing: Inside Job by Charles Ferguson
http://jessescrossroadscafe.blogspot.com/2012/07/weekend-viewing-inside-...

Sun, 07/08/2012 - 16:09 | Link to Comment lamont cranston
lamont cranston's picture

With apologies to the late Sen. Everette Dirksen, it's now "...a trillion here, a trillion there, now you're talking about real money."

Sun, 07/08/2012 - 16:11 | Link to Comment Poetic injustice
Poetic injustice's picture

I am sure that janitor responsible for this horrible incident and his sidekick assisstant of secretary of secretary of small finances department will be both severely punished.

Sun, 07/08/2012 - 16:16 | Link to Comment eddiebe
eddiebe's picture

I assume gold will be taken behind the woodshed over this.

Sun, 07/08/2012 - 16:19 | Link to Comment midgetrannyporn
midgetrannyporn's picture

 

 

1) Steal underpants

2) ???

3) Profit!

Sun, 07/08/2012 - 16:19 | Link to Comment Euro Monster
Euro Monster's picture

Where's Batman when you need him? :(

Sun, 07/08/2012 - 16:46 | Link to Comment Angus McHugepenis
Angus McHugepenis's picture

Didn't you hear? Turkish F4 Phantom jets (yeah, how old are they?) were scrambled to intercept a potential Syrian violation of Turkish airspace a week or so ago and one was supposedly shot down. Guess where the Turkish jets scrambled from?... Batman. So the Caped Crusader is still on the job. He's just working out of Turkey right now disguised as a military base.

Sun, 07/08/2012 - 21:19 | Link to Comment Landrew
Landrew's picture

Wow, almost eveything you wrote is not only wrong but backward. Do you live in a cave?

Sun, 07/08/2012 - 16:24 | Link to Comment debtor of last ...
debtor of last resort's picture

Well, with German government keeping DB afloat, how much money will be left for the ESM and target-2?

Oh, never mind, things are getting very ugly. We knew that already. The question is: when?

The world is close to a financial collapse, signals become more worrying by the week, day, hour....

Sun, 07/08/2012 - 19:58 | Link to Comment StychoKiller
StychoKiller's picture

As I post this, the Euro is trading at 1.2286.

Sun, 07/08/2012 - 16:36 | Link to Comment hungrydweller
hungrydweller's picture

"BAFIN (which is just like the SEC except that it also regulates.."

Bravo!

Sun, 07/08/2012 - 16:40 | Link to Comment paint it red ca...
paint it red call it hell's picture

I cannot guess where any of the political maneuvering toward creation of the financial union in europe is going in the short term but, with Merkel essentially agreeing to the creation of a european central bank week before last followed by the breaking of liborgate coming suddenly to light and now German regulators investigating their largest bank for complicity?

It certainly does not smell right to all be unrelated.One would expect UK investigators to whitewash the investigation, how will the Germans handle it, or mishandle it?

Smells like the German populace are about to be (further) manipulated, regardless.

Sun, 07/08/2012 - 16:46 | Link to Comment analyzer_66
analyzer_66's picture

If there is no US investigation in the next week or two, then corruption really is king and the rule of law has taken retirement.  Could all this be an effort to crash the Euro ? 

Sun, 07/08/2012 - 16:46 | Link to Comment analyzer_66
analyzer_66's picture

If there is no US investigation in the next week or two, then corruption really is king and the rule of law has taken retirement.  Could all this be an effort to crash the Euro ? 

Sun, 07/08/2012 - 16:54 | Link to Comment slackrabbit
slackrabbit's picture

What's a law?

It's what 'we' make it! 

 

(I wonder how long before Prof. Bill Black has an 'accident')

Sun, 07/08/2012 - 17:07 | Link to Comment DeadFred
DeadFred's picture

When someone comes up with the answer to the biggest question please let us know, why is this coming to light??? It's been around for years, it's can be seriously destabilizing, and they could have ignored it. A dead reporter or two, a shelved investigation or three and simple not putting together a commission and it all goes away. Yet that didn't happen. My Unusual-events alarm rings much louder when there is unexpected honesty than from fraud. There is some unseen change happening and it will have a major impact on the economy. Please post your conjectures, even the wild ones, about why they let this come into the open.

Sun, 07/08/2012 - 17:13 | Link to Comment blindman
blindman's picture

too many fiats, cooks, spoil the pillage, broth.
or
london is done rehypothecating and is being called
out by china through germany (desperate and realigning).
or
the aliens want the planet back.
or
the lack of real information has made everyone so stupid
that the system cannot even be maintained anymore so
some truth must enter the system.
or
give me a minute....

Sun, 07/08/2012 - 17:51 | Link to Comment Da55id
Da55id's picture

You asked for wild ones: Rev 17:18

Sun, 07/08/2012 - 19:15 | Link to Comment DeadFred
DeadFred's picture

You're a few months early IMHO

Sun, 07/08/2012 - 18:05 | Link to Comment blindman
blindman's picture

if 1 in 100,000 ideas are viable and valuable
the minds of "men" are wanting for direction.
given that the only absolute in the universe is
the speed of light and information travels at
that speed today and there are billions of people
on line we may have arrived at an information
awakening point where ideas can now be nearly
instantly vetted and offered and indeed, honesty
may be the only surviving policy left?
truth of context and information. maybe
time to adjust our alarm systems?

Mon, 07/09/2012 - 10:05 | Link to Comment DeadFred
DeadFred's picture

I did ask for wild

Sun, 07/08/2012 - 16:51 | Link to Comment slackrabbit
slackrabbit's picture

The funniest thing about this whole charade is I am paying the game The Secret World where the Illuminati run the banking system.

Clearly someone there is a Zero Hedge reader. Its both funny, sad and true …

Sun, 07/08/2012 - 16:54 | Link to Comment blindman
blindman's picture

so what is the crime? hmmm..
.
It's Not Libor Stupid, Central Banks Are The Problem
http://www.forbes.com/sites/shahgilani/2012/07/06/its-not-libor-stupid-c...
.

"..What’s good is we now know for a fact that the traders (crooks?) were aided and abetted by their co-workers, the submitters (crooks?), who were overseen by managers and top executives, who design most of these schemes (crooks?), and were all blessed by the British Banking Association, an illustrious association of 200 some-odd banks, whose many members (crooks?) are panel members submitting crooked (no question mark necessary) data." ..
.
the crime is "stealing money". the charges could range
from treason to identity theft and everything in between
usually reduced down to perjury? not to dismiss
control fraud, rico, embezzlement, trespass, drinking and
driving, sodomy, indecent exposure, counterfeiting, forgery, and a book full of other offensive acts normally
reserved for people with no money or lawyer. oh, and
cannibalism and infanticide, separately and together.
.
"..But it gets worse. What will happen when the “multiplier effect” takes effect? I’m talking about the potential for massive inflation when all those huge quantities of reserves (stimulus) get lent out instead of shelved on balance sheets? How about massive inflation."
..
maybe all of m1 and m2 will be tied up in court for
eternity and we can go back to barter and scavenging?

Sun, 07/08/2012 - 16:57 | Link to Comment icanhasbailout
icanhasbailout's picture

Tier 1 assets are for wusses. Ponzi-backed deposits all the way, baby!

Sun, 07/08/2012 - 17:05 | Link to Comment blindman
blindman's picture

"..Not only are at least twenty more big banks under investigation as part of a massive fraud to manipulate interbank lending rates that affect some $800 trillion in loans and derivatives, but the Bank of England is about to take center stage in the scandal.

And that’s bad news for central banks around the world.

Well, actually, it could be good news, as in really good news if it’s the beginning of the end of what central banks do to manipulate free markets to the benefit of their only real constituents, the world’s big banks."
..

Sun, 07/08/2012 - 17:10 | Link to Comment Mister Ponzi
Mister Ponzi's picture

Thankfully, Barclays officials informed the public that central banks and regulators played their role in the scandal. This will give us a lot of precious moments, a lot of fun when those corrupt bureaucrats will have to try to explain that they never interferred with money market rates and never had a strong interest in the banks lowering their rates. If I am informed correctly, tomorrow BOE's Tucker will have to appear in front of the same commission that grilled Bob Diamond last week. Popcorn time!

 

Sun, 07/08/2012 - 17:19 | Link to Comment deerhunter
deerhunter's picture

trips to the grocery store soon to be replaced by trips to the woods as "hunter, gatherer" takes on a whole new meaning.  Soon enough it is going to be what you know and not who you know.  GGGG God, guns, guts and a garden,  just saying.........days wages for a loaf of bread perhaps???

Sun, 07/08/2012 - 18:05 | Link to Comment orkneylad
orkneylad's picture

Planned Chaos?

Sun, 07/08/2012 - 18:27 | Link to Comment hooligan2009
hooligan2009's picture

ho hum...i pulled up an old zh article..why does it take 3 years when Tyler was talking about this sort of thing that long ago...sometimes its good to reminisce...

http://zerohedge.blogspot.co.uk/2009/01/this-makes-no-sense-libor-by-bank.html

only 3 and half years ago..dont see barclays quotes as out of line on that day..anyway

can anyone tell me why one year LIBOR for banks is lower than the annual premium charged on bank CDS? is borrowing money for a year from a LIBOR contributing bank, the same as shorting it via its 5 year bank CDS 

anyway..its called a "fix" for a reason..it ought to be apparent to anyone in the know that no cash actually moves at LIBOR, only valuations that happen to be on what (even with 600 trillion of derivatives using it) just 1 in 100 cumulative dollars traded by the banks in the last three years vi fx and money markets NOT at precisely 11 am on just one side of a stupid quote..derivatives traders and regulators ar fault...why yes...bank trading desks ..well only if they had to use the corrupted derivatives market that exchanges cash flow based on valuations not dealing prices..

Sun, 07/08/2012 - 19:52 | Link to Comment f16hoser
f16hoser's picture

Oh WOW. Jim Willie was right. The Golden Jackass has been "Spot-ON" for a long, long time. Unless of course you'ld rather listen to Jim Cramer the Villiage Idiot!

http://www.tfmetalsreport.com/podcast/3782/tfmr-podcast-19-jim-willie

http://www.tfmetalsreport.com/podcast/3834/tfmr-podcast-21-jim-willie-returns

http://www.tfmetalsreport.com/podcast/3910/tfmr-podcast-23-jim-willie-trifecta

 

Sun, 07/08/2012 - 20:36 | Link to Comment loveyajimbo
loveyajimbo's picture

Camera #2, do we still have all that Dimon stuff?  get ready to go live to JPM headquarters... What?  You are not sure that Dimon is up to his pipik in the LIBOR scam?  You'r fired, asshole!  Camera #3, are you there?!  Hey, I don't care about Blankfein and geithner doing unnatural sex, get over to JPM, STAT!!!

Sun, 07/08/2012 - 21:13 | Link to Comment boeing747
boeing747's picture

This bank along with JPM and HSBC are also involved in mass silver shorts.

 

Mon, 07/09/2012 - 18:26 | Link to Comment hooligan2009
hooligan2009's picture

the air bus is bigger

Tue, 07/10/2012 - 08:09 | Link to Comment blueridgeviews
blueridgeviews's picture

When all else fails, lie, cheat and steal. What hhappens to the common man when he lies, cheats and steals? Oh, never mind.

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