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  1. #1
    Freaking Ratchet Rail Tracer's Avatar
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    Default Libor: The Crime of the Century - TOTAL Financial Corruption

    Yes, I know, we still have 88 years before we can truly say that this is the crime of the century. I'm pretty sure we'll have more.

    Essentially, Libor affects everything. It is bigger than Enron. Think of any scandal you can come up with and they PALE in comparison to what is going on.

    Some Background on Libor
    Another Background information for Libor
    The Repeal of section 20 of the Glass-Steagall Act
    Barclays Scandal
    JPMorgan's $9 Billion loss.
    Libor rate-fixing scandal spotlight now on Citi, JPMorgan
    LIBOR-Gate Will Take Down Many More Bankers, And The Claims Will Spiral Into The Trillions
    Lawsuits against banks loom in Libor scandal

    For those that don't want to read all the articles:


    Infographic: http://www.businessinsider.com/infog...plained-2012-7

    With all the banking issues we have today. The issues are a lot deeper than anyone realizes. With our politicians and government officials unwilling to go after every-last-one-of-them.

    Fascinating that it is just so true that you can rewrite the rules if you have the money.

    http://www.thenation.com/article/168...eadlineNation#
    Forget Bernie Madoff and Enron’s Ken Lay—they were mere amateurs in financial crime. The current Libor interest rate scandal, involving hundreds of trillions in international derivatives trade, shows how the really big boys play. And these guys will most likely not do the time because their kind rewrites the law before committing the crime.

    Modern international bankers form a class of thieves the likes of which the world has never before seen. Or, indeed, imagined. The scandal over Libor—short for London interbank offered rate—has resulted in a huge fine for Barclays Bank and threatens to ensnare some of the world’s top financers. It reveals that behind the world’s financial edifice lies a reeking cesspool of unprecedented corruption. The modern-day robber barons pillage with a destructive abandon totally unfettered by law or conscience and on a scale that is almost impossible to comprehend.

    How to explain a $450 million settlement for one bank whose defense, in a plea bargain worked out with regulators in London and Washington, is that every institution in their elite financial circle was doing it? Not just Barclays but JPMorgan Chase, Citigroup and others are now being investigated on suspicion of manipulating the Libor rate, so critical to a $700 trillion derivatives market.

    Caught as the proverbial deer in the headlights, Barclays Chairman Robert E. Diamond Jr. resigned this week and offered a plaintive defense to the British Parliament that he learned only recently that his bank was manipulating the index on which so large a part of international trade is based. That is plausible only if we assume he was paid $10 million a year to be deliberately ignorant. The Wall Street Journal had exposed this scandal fully four years ago but his bank continued to participate in it nonetheless.

    “Study Casts Doubt on Key Rate” was the headline on the May 29, 2008, investigative report, which concluded: “Major banks are contributing to the erratic behavior of a crucial global lending benchmark, a Wall Street Journal analysis shows.” Even then, according to the report, it was known that the Libor rate was being manipulated “to act as if the banking system was doing better than it was at critical junctures in the financial crisis.”

    Fast-forward four years to Diamond’s testimony before Parliament this week in which the CEO claimed his recent discovery of a pattern of interest manipulation by Barclays had made him “physically sick.” Who was to blame? According to the executive, subordinates acting behind his back.

    The American-born banker, who has dual citizenship in the United States and Britain, is well versed in financial chicanery, having started by putting together derivatives packages at Credit Suisse First Boston back in 1996. He was compelled under parliamentary questioning Wednesday to admit that “I can’t sit here and say no one in the industry [knew] about the problems with Libor. There was an issue out there and it should have been dealt with more broadly.”

    He couldn’t deny widespread chicanery within his bank because, as in the collapse of Enron a decade ago, investigators had uncovered an e-mail record of market manipulation so glaring that if the top executives were unaware, it was because they didn’t want to know.

    As the New York Times editorialized: “The evidence, cited by the Justice Department—which Barclays agreed is ‘true and accurate’—is damning. ‘Always happy to help,’ one employee wrote in an email after being asked to submit false information. ‘If you know how to keep a secret, I’ll bring you in on it,’ wrote a Barclays trader to a trader at another bank, referring to their strategies for mutual gain. If that’s not conspiracy and price-fixing, what is?”

    The US Justice Department made a deal with Barclays, and although it may prosecute some individuals in the scam, it agreed not to go after the bank itself. “Such an agreement makes sense only if that cooperation will allow prosecutors to nail other banks that have been involved in setting the rates, including potential cases against Citigroup, JPMorgan Chase and HSBC,” the Times editorial said.

    Both Citigroup and JPMorgan Chase were reported by the Wall Street Journal years ago to be suspected of rigging the Libor interest rate. The leaders of those banks, despite such media exposure, clearly remained confident enough to continue on their merry way.

    The sad reality is that they will probably get away with it. The world of high finance is by design as obscure and opaque as the bankers and their political surrogates can make it, and even this most recent crack in their defense of deception will soon be made to go away.
    Last edited by Rail Tracer; 07-11-2012 at 02:42 AM.

  2. #2

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    It doesnt surprise me that you can rewrite the rules if you have the money, what surprises me is that there's so many pundits and pressure to permit it and keep permitting it and to make it actual policy.

    Essentially this has all been an excellent experiment in unmitigated capitalism and its been an abject failure.

    This has been concentrated Randian ethics and Austrian economcis in full effect and yet it'll still get spun like it was the "gummit" all along. Stupid. Stupid. Stupid.

    The sheer amount of evidence is incredibly staggering now. Although my concern is that since the left IS a non-entity, they choose that path, dont want to leave it, think everyone is going to or ought to join them on it and the right wing is just so amazed it is still at the races and is pretty much politically invincible that some awful cover up and further empowerment of corporate interests will be the sole upshot of this all.

  3. #3
    Senior Member Lateralus's Avatar
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    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  4. #4

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    That this goes up at the same time or broadly same time as another thread about government accountability I think says something about ideological entrenchment.

  5. #5
    Senior Member Lateralus's Avatar
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    Quote Originally Posted by Lark View Post
    That this goes up at the same time or broadly same time as another thread about government accountability I think says something about ideological entrenchment.
    I thought about posting a response in that thread about the incredible lack of corporate responsibility, but I decided against it. People who blame government first don't understand that the reason the government is "irresponsible" is because it is beholden to corporate power.
    "We grow up thinking that beliefs are something to be proud of, but they're really nothing but opinions one refuses to reconsider. Beliefs are easy. The stronger your beliefs are, the less open you are to growth and wisdom, because "strength of belief" is only the intensity with which you resist questioning yourself. As soon as you are proud of a belief, as soon as you think it adds something to who you are, then you've made it a part of your ego."

  6. #6

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    Quote Originally Posted by Lateralus View Post
    I thought about posting a response in that thread about the incredible lack of corporate responsibility, but I decided against it. People who blame government first don't understand that the reason the government doesn't respond is because it is beholden to corporate power.
    I really, really do wonder about this mindset though.

    Perhaps its a matter of just really not wanting to know or prefering the comfort of reinforcing something you think you know for a fact already with more of a particular source and ignoring anything else.

    Its not like it doesnt happen on the left wing either, they have pet causes and the amount of time and attention given over to things which I think dont matter or dont matter as much, or worse that I think dont matter but which will matter when they are profiled and made to matter, really pisses me off too.

    I kind of feel like an editor when I see it and think "really? This is what you decided to go with? When there's all this other stuff going on?", you could imagine it as someone wanting to run with a headline about a pretzel stand when Godzilla is trampling the city or Jesus has just descended from the heavens or aliens have landed with a source of infinite, free power.

  7. #7
    Freaking Ratchet Rail Tracer's Avatar
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    Quote Originally Posted by Lateralus View Post
    I thought about posting a response in that thread about the incredible lack of corporate responsibility, but I decided against it. People who blame government first don't understand that the reason the government is "irresponsible" is because it is beholden to corporate power.
    I was really thinking of posting something about my OP in that thread, but I just couldn't. It is just too big to not have it's own thread.

    Quote Originally Posted by Lark View Post
    I really, really do wonder about this mindset though.

    Perhaps its a matter of just really not wanting to know or prefering the comfort of reinforcing something you think you know for a fact already with more of a particular source and ignoring anything else.

    Its not like it doesnt happen on the left wing either, they have pet causes and the amount of time and attention given over to things which I think dont matter or dont matter as much, or worse that I think dont matter but which will matter when they are profiled and made to matter, really pisses me off too.

    I kind of feel like an editor when I see it and think "really? This is what you decided to go with? When there's all this other stuff going on?", you could imagine it as someone wanting to run with a headline about a pretzel stand when Godzilla is trampling the city or Jesus has just descended from the heavens or aliens have landed with a source of infinite, free power.
    Generally, government officials need money (lots of money) to run.
    Corporations have lots of money to give.
    Corporations have Citizen's United.
    Corporations want compensation for helping them get in.
    We see them mess up the government
    We blame the government for "messing" things up even though behind the scenes, it is the corporations that are asking for these laws.

    It is where many of the stupid laws come from. Take out the money. The problem is that the politicians need money to get elected.

    BUT, there are other factors. If America was like the UK and Europe in this matter, JP Morgan (and a lot of these other people) would not be going out with a slap in the wrist, they would be seeing pitchforks day-in and day-out.

    We would not be talking about Tom Cruise and what's her name (that dude with the Scientology belief.)

  8. #8

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    Quote Originally Posted by Rail Tracer View Post
    BUT, there are other factors. If America was like the UK and Europe in this matter, JP Morgan (and a lot of these other people) would not be going out with a slap in the wrist, they would be seeing pitchforks day-in and day-out.

    We would not be talking about Tom Cruise and what's her name (that dude with the Scientology belief.)
    I think you've got a pretty idealised view of the UK at least, I dont know about the rest of Europe, but the Barclays scandal had government and private financiers tied in together in all sorts of ways, there's speculation that its part of the reason why former PM Blair is hiding in the US on a semi-permanent speaking tour or lecturer position on religion in public life (of all the things), that and you know, the illegal war in Iraq.

    Its been well and truly proven that in the UK individuals in the financial sector exercise an immunity to prosecution, there was a dispute about how to investigate Barclays et al and it was so heated that the chair of the commons almost had to close the house and BBC radio made reference to the seating which is theoretically two swords lengths apart (that means that it was so rowdy members were ready to "draw down" on each other before order was restored). The outcome of this debate/dispute was the decision that a parliamentary rather than judicial enquiry would he held, meaning that once again finance will be immune to prosecution.

    They are currently talking about whether or not Barclays boss, if he steps down because of the scandal should receive a hundreds of millions pay off or not. This is all in a situation in which they acknowledgely broke the law in a spectacularly damaging way for the rest of the economy and the country. Foreign agents or criminal counterfeiters couldnt possibly have acted in any better a way to undermine domestic and international confidence in the rule of law in UK finance.

    The terrible thing is that the present conservative party is attempting to make a point here, they want international crooks, the mcmafia, to see that it is OK to "do business" in the UK and that financial district is in hoc with government and will be "of service" to them. Its disgusting that this is what the country amounts to now that the rich have been winning the class struggle so easily since 1979.

  9. #9
    Freaking Ratchet Rail Tracer's Avatar
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    Quote Originally Posted by Lark View Post
    I think you've got a pretty idealised view of the UK at least, I dont know about the rest of Europe, but the Barclays scandal had government and private financiers tied in together in all sorts of ways, there's speculation that its part of the reason why former PM Blair is hiding in the US on a semi-permanent speaking tour or lecturer position on religion in public life (of all the things), that and you know, the illegal war in Iraq.

    Its been well and truly proven that in the UK individuals in the financial sector exercise an immunity to prosecution, there was a dispute about how to investigate Barclays et al and it was so heated that the chair of the commons almost had to close the house and BBC radio made reference to the seating which is theoretically two swords lengths apart (that means that it was so rowdy members were ready to "draw down" on each other before order was restored). The outcome of this debate/dispute was the decision that a parliamentary rather than judicial enquiry would he held, meaning that once again finance will be immune to prosecution.

    They are currently talking about whether or not Barclays boss, if he steps down because of the scandal should receive a hundreds of millions pay off or not. This is all in a situation in which they acknowledgely broke the law in a spectacularly damaging way for the rest of the economy and the country. Foreign agents or criminal counterfeiters couldnt possibly have acted in any better a way to undermine domestic and international confidence in the rule of law in UK finance.

    The terrible thing is that the present conservative party is attempting to make a point here, they want international crooks, the mcmafia, to see that it is OK to "do business" in the UK and that financial district is in hoc with government and will be "of service" to them. Its disgusting that this is what the country amounts to now that the rich have been winning the class struggle so easily since 1979.
    I hope not. It is just that in the UK (besides the UK being overly security ridden,) there is actually a party to tell these people straight up that they'll be up in their case until the truth is completely spat out.

    In here, the party is practically in line with those same institutions. The talk with Jamie Dimon and the JPMorgan case is nothing (considering most of the people questioning him has had money given to them by JPMorgan.) There was no outrage, it was more like a scolding/questioning.

  10. #10
    Freaking Ratchet Rail Tracer's Avatar
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    Commentary on a Barclays? Priceless.

    Love the accent too.

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