PLANETARY RATES SCAM: Nobody can deny it now

Reuters joins MSM chorus accepting global knowledge of Libor frauds

Further to previous Slogposts about the multinational nature of Libor manipulation – and the authorities’ knowledge of the same – Reuters said this today….

The Federal Reserve Bank of New York may have known as early as August 2007 that the setting of global benchmark interest rates was flawed. Following an inquiry with British banking group Barclays Plc in the spring of 2008, it shared proposals for reform of the system with British authorities.

The role of the Fed is likely to raise questions about whether it and other authorities took enough action to address concerns they had about the way Libor rates were set, or whether their struggle to keep the banking system afloat through the financial crisis meant the issue took a backseat.

A New York Fed spokesperson said:

“In the context of our market monitoring following the onset of the financial crisis in late 2007, involving thousands of calls and emails with market participants over a period of many months, we received occasional anecdotal reports from Barclays of problems with Libor. In the Spring of 2008, following the failure of Bear Stearns and shortly before the first media report on the subject, we made further inquiry of Barclays as to how Libor submissions were being conducted. We subsequently shared our analysis and suggestions for reform of Libor with the relevant authorities in the UK.”

It is hard to believe than anyone with a brain could still believe that rate fixing is restricted to any one continent, let alone one bank in one country.

34 thoughts on “PLANETARY RATES SCAM: Nobody can deny it now

  1. No prosecutions at all.
    This now goes all the way to the top in the US.
    It might stop at Geitner ,but I do not think so.
    So Bush,Obummer etc could well be implicated.
    The unacceptable face of fascism in all is glory..
    It will be buried in a ‘commission of enquiry ‘.

  2. Pingback: John Ward – Planetary Rates Scam : Nobody Can Deny It Now – 10 July 2012 | Lucas 2012 Infos

  3. “It is hard to believe than anyone with a brain could still believe that rate fixing is restricted to any one continent, let alone one bank in one country.”
    ….Shhh! Don’t tell the others.

  4. We subsequently shared our analysis and suggestions for reform of Libor with the relevant authorities in the UK.”‘

    Love that part by reform I think it went like this – we told them get the bloody rate down anyway you can and do it now.

    Agree nobody will get prosecuted. Honestly anyone who thinks Geithner, Ben, King,Turner, the Diamond twins will be charged just who will charge them. Hmm they own the system does one thing the men in blue or the prosecutors are going to knock down their doors. LOL never going to happen, and this like all the shit before it will be relegated to a foot note in some book which may or may not be mentioned to future generations.

  5. Should have been clear from start – including to me – that the ONLY way individual traders could profit from a bent LIBOR was through collusion. Knowing or influencing your own bank’s submission ALONE would not have skewed the rate enough to make a profitable trade.

    • Of course no one Bank can rig Libor, which is why the relentless hate campaign against Barclays – and the Tory Party who were not even in power at the time – is just so much piffle.

      Libor is made from the submissions, which are themselves estimates not actual trading data (anyone every employed a builder ?), from 16 Banks etc of which the top and bottom four are discarded. The remaining 8 are averaged. If you read some of the FSA Report it seems clear that on some occasions Barclays wanted to be thrown out of that days panel. To ‘fix’ the rate you have to have more than 4 estimates heading to you preferred rate, and that sort of collusion is rather difficult to organise and keep secret. I have yet to read any evidence that any action by Barclays on any particular date altered in any material way the rate set for that particular day. Smears are all very well, but the Law requires a fact, and I don’t see any facts that would satisfy Justice.

      • “Smears are all very well, but the Law requires a fact”

        This is indeed the principle of the Law. But I think that these days the law has been corrupted beyond such niceties. The law now requires a guilty party – and the guilty party is the one who does not kow-tow to (and fall on their knees before) the Emperor of the Scum….the corruption in the whole system, now a requirement to be a part of any of it. This ‘Emperor’ has taken on a life in and of (and perpetuates) itself through those who hold no-one, especially themselves, to account.

      • @Andy: I totally agree.

        @Morningstar: I also agree with. Your comments are additional to, not instead of, what @Andy wrote.

  6. I think it should have been obvious from early on that it wasn’t just Barclays rigging Libor. If anything they were late to the party.

    The question is whether the New York Fed’s knowledge of it in 2007 (under Geithner) and its claim to have informed/discussed the matter with the UK authorities will mean that Mr Turner is back in the frame. Maybe Merv too.

      • Indeed. In the MSM piece I heard today, there are questions as to why it took Geithner so long to pick the issue up and talk to the UK authorities.

  7. What a Performance – so there never was a memo from Turner. Don’t suppose Anita Pallenberg at the IMF knew anything either.

  8. See ZEROHEDGE:

    ”Gordon Brown Sold Britain’s Gold at Artificially Low Prices to Bail Out a Large American Bank”

  9. Hmmmm…
    Madam this is an interesting observation.
    In exclusive academic circles, of which I am a leading and central figure ( 42-36-38) , we refer to this event in terms of the ”earliest known form of QE to save the too big to fail banks”.
    The question that dominates our studies at the present time concerns the viability and sustainability of the euro currency – a subject that is taxing the resources of our scholars somewhat. We will be attending a conference in the Las Vegas Casino Palace Hotel next week at taxpayers expense I should add and debating the debacle in full. We were mildly amused that the organisers of this get together of the best brains in the financial world were advising us not to try to exchange euro currency at the reception desk as the exchange rate to the mighty US dollar is not very exciting to understate the matter.

    • Love the irony of the discussion on the sustainability of a currency which was a political and economic gamble taking place in a casino

  10. So,does this mean that there will be no prosecutions-again?Well,according to Roubini,bankers will swing.I think I will go long piano wire and lamp posts.

      • @Jason Aris: Quite so. It is surely another dishonest contradiction by the BoE’s man Turner who claims that the BoE have no powers to order a bank to do something (eg to rig Libor). And yet, when they wanted Diamond to quit Barclays, it happened inside 18 hours. Truth is that the BoE and various other govt officials have huge power & control over the banks. It has always been thus.

  11. But if the Majority of Banks in most Nations are rigging the Rates then surely, although said to be ‘rigged’, the Rates established must have been as a result of a satisfactorily sized sample of Open Market Inputs.

    Therefore, the rates were not rigged, but simply the product of a corrupt and ailing Banking System?

  12. This from Wikipedia:

    “On Thursday, 29 May 2008, The Wall Street Journal (WSJ) released a controversial study suggesting that banks might have understated borrowing costs they reported for Libor during the 2008 credit crunch.[redux].For example, the study found that rates at which one major bank (Citigroup) “said it could borrow dollars for three months were about 0.87 percentage point lower than the rate calculated using default-insurance data.”

    So the international dimension is hardly news???

  13. They’re rolling all this out now to prepare the defence argument that will get them off the hook (especially given that the prosecution will, in fact, be working for the defence).

    The argument will be; “Yes, Ok, technically we were lying, manipulating rates, dragging gold pice up and down with an invisible tractor beam and all the rest. We hold our hands up. It’s a fair cop, guv! But here is the real data (Exhibit A). If we hadn’t taken matters into our hands the whole system would have come crashing down in the mid-70s. And remember everyone had nukes pointed at each other back then. Things would have gotten out of control. So we did God’s work and dragged things out until we could engineer a softer landing that won’t start WW-III.”

    And it’ll work! They’ll all get off and take their fat profits (and you know not one of these buggers has that money in cash – it’s all in oil, gold, silver, land, real estate and other hard commodities).

    Then we’ll have WW-III.

  14. Pingback: GEITHNER: Tucker knew about Libor scamming in 2008 | A diary of deception and distortion

  15. Pingback: GEITHNER: Tucker knew about Libor scamming in 2008 | A diary of deception and distortion

  16. Pingback: John Ward – Geithner : Tucker Knew About Libor Scamming In 2008 – 13 july 2012 | Lucas 2012 Infos

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