Hoping you get to realize the extent of our dependance and complete ignorance of their tactics, allowing their financial dictatorship to rule our lives and deaths, please read:
“What may still seem to many to be a parochial affair involving Barclays, a 300-year-old British bank, rigging an obscure number, is beginning to assume global significance. The number that the traders were toying with determines the prices that people and corporations around the world pay for loans or receive for their savings. It is used as a benchmark to set payments on about $800 trillion-worth of financial instruments, ranging from complex interest-rate derivatives to simple mortgages. The number determines the global flow of billions of dollars each year. Yet it turns out to have been flawed.
Over the past week damning evidence has emerged, in documents detailing a settlement between Barclays and regulators in America and Britain, that employees at the bank and at several other unnamed banks tried to rig the number time and again over a period of at least five years. And worse is likely to emerge. Investigations by regulators in several countries, including Canada, America, Japan, the EU, Switzerland and Britain, are looking into allegations that LIBOR and similar rates were rigged by large numbers of banks. Corporations and lawyers, too, are examining whether they can sue Barclays or other banks for harm they have suffered. That could cost the banking industry tens of billions of dollars. “This is the banking industry’s tobacco moment,” says the chief executive of a multinational bank, referring to the lawsuits and settlements that cost America’s tobacco industry more than $200 billion in 1998. “It’s that big,” he says.
As many as 20 big banks have been named in various investigations or lawsuits alleging that LIBOR was rigged. The scandal also corrodes further what little remains of public trust in banks and those who run them….”
This is an expert from The Economist. They are not the only ones going public with this outrageous scandal, though I don’t see it getting the spotlight it deserves in mass media…
For more, you can also read:
FSA’s Turner Says Banks Culture One of ‘Cynical Entitlement’ (Bloomberg)
Barclays Libor scandal: how can we change banking culture? (The Guardian)
Barclays just the tip of the iceberg as banking braced for more scandals (The Guardian)
Banking Reforms after the Libor scandal (Financial Times)
EU’s Barnier pushes for criminal sanctions for Libor abuse (Reuters)
Barnier Seeks to Widen EU Rules to Bar Libor Manipulation (Business Week)
The links have been collected by the people at Avvaz.org, promoting a signature collection to reinforce Michel Barnier, ( the EU finance regulator ) who is standing up to the powerful bank lobby and championing reform that would put bankers behind bars for fraud like this.
” If the EU goes first”, they write, “accountability could quickly spread across the globe. But the banks are lobbying hard against it, and we need a massive surge of people power to drive these reforms through.”
PLEASE SIGN ALONG!