Two hundred and ninety million pounds – that’s how much Barclays has been fined for attempting to manipulate the Libor interest rate. That’s not much less than the estimated £300m cost of last year’s riots in London, and it may only be a small fraction of the total damage Barclays has caused. As Philip Aldrick noted yesterday, loans with a value of $10 trillion are indexed using Libor, while over-the-counter derivatives indexed to Euribor, the European Libor equivalent, total over $220 trillion.
But what is the most severe punishment that anyone will suffer for this massive, immense wrongdoing? Bob Diamond may lose his bonus; he may even be sacked. So too may a few Barclays executives. But no one will be imprisoned for this colossal abuse of the financial system. No one will pay in anything approaching a proportionate level to the damage done.
Because some on the Left tend to see finance as an enormous, destructive and parasitical “vampire squid”, the Right has traditionally defended finance. They are right to do so: the importance of a robust and innovative financial system to a strong economy is often underappreciated. As Labour’s first prime minister, Ramsay MacDonald, put it: “finance is the nervous system of capitalism”. Innovations like derivatives are not (only) designed to allow rampant speculation – they give firms real benefits, like the ability to “hedge” against price increases in their raw materials. Reducing uncertainty, supplying capital and spreading risk creates real economic growth.
But that doesn’t mean that outrageous, greedy behaviour should be tolerated. And there is a growing chorus of voices from the Right calling for more bankers to be thrown in jail. The Conservative MP Matthew Hancock has proposed “a law which makes it possible to prosecute executives for serious financial recklessness”, which this manipulation would surely come under…
This case has not received the attention it so desperately deserves. LIBOR rates are the rates upon which the Adjustable Rate Mortgages (ARMs) are based. My own mother saw her mortgage payment jump to nearly double what it had been in just the span of about a year. And it was all due to these bastards pushing it up as high as they could, in order to break the system -- and then positioning themselves after the resultant crash to make even more money on the way down.
They should all be imprisoned -- every last one of them with even the slightest bit of involvement in this LIBOR manipulation scandal.
Sorry James, but the apathy runs too deep. If you can't get the People to repudiate a debt that they absolutely said "NO!" to in 2008, then none will call for Banksters to to account. Just like the dog and pony show about Holder. Who is stupid enough to actually think the Just-Us Dept. would ever bring charges it's own head? MORONS!
I can honestly say that I weep, because I was alive when Americans got pissed over any Govt., or Market manipulations, and beat back the Agenda by years....but what I see today, makes me want to puke! Present company excluded, of course.
America's financial and 'homeland security' catbox is long overdue for a change. The guests are staying home and the skittish are moving out. The CFRtv has most of America 100% hypnotized.I can't believe Janet Napolitano is anyone's idea of a security manager. So I will not. She does have 450 million rounds of killer hollow-point rounds for those who won't flirt back. If she was not so intent on molesting, she would not be so frustrated. Poor woman. Maybe she can share a cell with a banker.
Now Available on Digital - http://bit.ly/2uxDibn50 miles north of New York City, the town of Monroe is a microcosm for a hyper-partisan and divided nation as...
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