Sunday, July 15, 2012

U.S. Is Building Criminal Cases in LIBOR "Scandal"

NYT reports (my bold):
... the Justice Department has identified potential criminal wrongdoing by big banks and individuals at the center of the scandal.

The department’s criminal division is building cases against several financial institutions and their employees, including traders at Barclays, the British bank, according to government officials close to the case who spoke on the condition of anonymity because the investigation is continuing. The authorities expect to file charges against at least one bank later this year, one of the officials said.

The criminal investigations come at a time when the public is still simmering over the dearth of prosecutions of prominent executives involved in the mortgage crisis. The continued trouble in the financial sector, including the multibillion-dollar trading losses at JPMorgan Chase, have only further fueled the anger of consumers and investors.

But the Libor case presents a potential opportunity for prosecutors. Given the scope of the problems and the number of institutions involved, the rate-rigging investigation could provide a signature moment to hold big banks accountable for their activities during the financial crisis.

“It’s hard to imagine a bigger case than Libor,” said one of the government officials involved in the case.
I can imagine a much bigger case. Against this guy:


Keep in mind that for the most part LIBOR traded in line with Treasury bill rates and the fed funds rate. BUT the Treasury bill market and fed funds rate are manipulated on a daily basis by the Fed.

The LIBOR "scandal" will perhaps result in show trials,where some saps way down the elitist list totem pole will be hung out to dry, to create the impression that government is battling evil. It is doing no such thing. Government is the evil behind the real interest rate manipulations.



3 comments:

  1. "“It’s hard to imagine a bigger case than Libor,” said one of the government officials involved in the case."


    Funniest statement of the year.

    ReplyDelete
    Replies
    1. Perhaps we ought to show him The Case Against the Fed

      Delete
  2. I just can remember how this scandal started and be a widespread issue a couple of years ago. Good thing that somehow, there are some improvements or the process of investigation is moving though there are still some cases to be solve by the law firm in houston other than this LIBOR scandal. I hope that this case will soon be closed and be solved by the law firms.

    ReplyDelete