DIAMOND TESTIMONY: Slog completely vindicated by TSC documents placed in evidence by Barclays

Whatever Diamond says this afternoon, all The Slog’s suspicions about Libor manipulation have proved entirely justified

Note these past Slogsposts:

September 8th 2010

‘Bob Diamond’s accession to the post of blue touch-paper igniter [CEO of Barclays Group] is a done deal. And another nail in the Coalition’s coffin….As long as they continue to be appeased, bankers will never learn to sniff the public mood…’

April 20th 2011

‘A total of sixteen banks are being investigated, and sources in the US last night confirmed to The Slog, “What started as something half-hearted is now much more focused. I guess you could say the rumour here is that they [the regulators] are onto something pretty big”…..the authorities suspect that key traders [at Barcap] used Treasury information via the main branch dealing with the UK Treasury. At the time, the Barcap investment division was headed by the Barclays CEO today, Bob Diamond….the BBA said it observes “rigorous standards in our scrutiny and governance of the Libor mechanism, and work with the industry to ensure their continued full confidence in one of its most accurate and reliable benchmarks.” Many observers have grown wary, over the years, of strenuous denials using the words ‘rigorous standards’.’

November 23rd 2011

‘The Libor panel is barely regulated and completely unelected. The panellists have come under increasing scrutiny from the victims of rigging scams, those who accuse them of leaking, and the legal/watchdog authorities. A plethora of lawsuits filed this year show investors accusing a number of banks represented on the Libor panel of distorting market prices by hiding the banks’ true borrowing costs since as early as 2007. (Bob Diamond’s Barclays is allegedly implicated in this).’

February 29th 2012

‘What started out eleven months ago as a commercial lawsuit against various European banks regarding alleged LIBOR rate manipulation has now turned into a criminal investigation by the US Justice Department. Banks thought to include Barclays Citigroup, HSBC , Royal Bank of Scotland and UBS are undergoing investigation at present.

The criminal aspect of the case was only revealed by Justice late yesterday GMT. It is part of a global investigation across  the US, Japan, Canada and the UK….It was alleged by insiders at one institution this morning that Barclays “of all of them has been the least helpful to date”….The suspicion has always been that traders at the banks manipulated the Libor rate to create a windfall of tens of millions of dollars each when they faced very serious liquidity problems during the 2008 credit crunch. During the 2008 financial crisis, overnight Libor spiked – a sure sign banks were having trouble borrowing money. Markets drew confidence later on, when Libor rates began to drop. The Wall Street Journal had doubts about the veracity of that drop at the time….’

June 28th 2012

It could well be that the time has come for some noisy skeletons to walk out of the Westminster cupboard. An international investigation into the alleged 2008 Libor manipulation scandal has been necessary pretty much right from the start. Without wishing to seem too obvious here, that’s because what happened was internationallyarranged…However, much as I would love to lump every last kilo of smelly silage on the Diamond Geezer for this, it looks like even he was, on this occasion, merely a cog in a much bigger wheel….Following this morning’s Slogpost, this email content from an as yet uncorroborated but well-connected source: ‘During 2008/9 I worked at a major investment bank which was advising the office of the PM [Gordon Brown] with regard to the developing banking crisis. I was told that No.10 had been calling the UK banks and demanding that they manipulate LIBOR down, as his economics department had determined that if it rose too much it would trigger a recession and he was looking at re-election”…..for me, the case raises two massive questions:

1. Where did the LIBOR manipulation scam start?

2. Is this why Bob Diamond feels able to tell David Cameron and George Osborne to f**k off with such impunity?

Stay tuned: this is a developing story.’


This from today’s Daily Telegraph on the subject of Diamond Bob’s likely testimony:

‘The Deputy Governor of the Bank of England encouraged Barclays to try to lower interest rates after coming under pressure from senior members of the last Labour government, documents have disclosed.’

Also from today’s Daily Telegraph:

The Bank of England was not to blame for the rate-rigging scandal in the banking industry but those around Gordon Brown were “clearly involved”, George Osborne has said.’

The record shows that, from the start of the Libor Party, The Slog has been ahead of the game. The future’s in The Slog.

42 thoughts on “DIAMOND TESTIMONY: Slog completely vindicated by TSC documents placed in evidence by Barclays

  1. great work John now lets see if BD gets grilled or is it just a show.

    also JW can you clear this up for me. I though tucker was head of FSA at the time he spoke to BD and BD sent out the email of that conversation to his colleagues. If so why did the fSA then investigate the bank as they had told them, so to speak, to do it? It doesn’t make sense


  2. And as I have stated all along: Gordon Brown and his cohorts were at the centre of the Libor scandal and up to their necks in it. The BoE was the conduit although if your e-mail this morning is accurate, it looks like Brown’s minions were also talking directly to the banks.


  3. Indeed, Angela Brown’s predecessor at the BBA used to boast to me how much time he spent with Gordon Brown at No 11 in the years up to 2007, when he retired to his places in Thailand and Majorca.


  4. @BT; I would agree with you wholeheartedly but, will Brown come to any grief over the affair? I, for one very much doubt it, in fact I think this is so endemic that it is unlikely to come to much at all. A ‘Line’ will be drawn under the whole affair and ‘lessons will be learnt’ Isn’t this the usual way when governments get caught with their pants down?


  5. @kfc: I also doubt that Brown (and Balls) will be held to account. In the overall scheme of things, rigging Libor is pretty small fry when considering all the other scandals he’s been involved in on the economy.
    And as you say, corruption is endemic.

    The great mystery is why Cameron & Co have not taken advantage of events and used them to put the last Labour Govt in the dock, both metaphorically and literally. His virtual silence is allowing Milipede to crow, claim the moral high ground and distance himself from being a minister in the Labour government that wrecked and bankrupted the British economy.


  6. @OAH: That suggests that dropping City/Bank regulation was payback for the banks going along with Brown’s unsustainable expansive economic policies. As anyone who knows how corporatism/fascism works: first you essentially take control of the banks…


  7. The aspect that appeals most to me is that the USA is screaming out for justice. Let’s hope the lop-sided UK/USA extradition treaty is well-oiled.


  8. @BT

    I cannot know any better than anyone else but it suggests to me similarities with the MP’s expenses ‘scandal’. Put simply, Cameron couldn’t go for the Labour party MP’s because his lot were (as indeed was he himself) doing the same corrupt stuff.

    Perhaps he has simply followed on with Merv and the banks, but with other yet to be revealed ‘in the National Interest fiddles’, don’t you think?


  9. “The record shows that, from the start of the Libor Party, The Slog has been ahead of the game. The future’s in The Slog.”

    Ummm, hardly. The FT has been ahead of you all the way. And you are way behind the BBC which has reported today that the Diamond geezer has once again made it quite clear that he did not consider he received any instructions from the BofE to lower Barclays LIBOR submissions – it is just that this is the way his deputy understood it. Seems you are keen to promote those stories suggesting conspiracy, not so keen to report those stories denying conspiracy.

    If the Slog is the future, it strikes me that it is even more corrupt than the MSM. Cherry picking MSM stories to promote a theory that isn’t actually underpinned by any evidence. Corrupt. You are worse than Murdoch.


  10. Pingback: John Ward – Diamond Testimony : Slog Completely Vindicated By TSC Documents Placed In Evidence By Barclays – 4 July 2012 | Lucas 2012 Infos

  11. @BT &kfc1404.Dave has possibly got this one right.Tomorrow’s vote in the House of Expense Cheats may give a Parliamentary Committee the golden opportunity to restore,or not,the public’s confidence in democracy.We all have our suspicions,prejudices and so on about the authorship of the UK’s biggest financial fiasco since the crash of 1929.Garry’s comprehensive failure to abolish the economic cycle is just one of his disasters,narrowly beating his construction of aircraft carriers that cannot deploy aircraft.In an ideal world,MarK and his useless deputy Tucker( doubtless, the cousin of Roy of Rossminster fame),Hector the Saint,Ballocks and the one eyed saviour of planet earth will all be required to explain themselves under oath,I am not holding my breath.MarK and the useless Turner got rid of Diamond Bob,BEFORE his appearance today.These tu ds protect each other.Tyrie is a man of principle,and a denier of the Church of Scientology,or Global Warming, as it is sometimes called,which is why he is not on the front bench,but maybe he will surprise us all.


  12. Mark Ch6:V4

    If you don’t like what John writes, move your pointery thing up to the little white cross in the red bit up there in the top right of your screen and press it. No – please – no thanks necessary … if I can bring a little joy into people’s lives as I drift aimlessly through my own, then that is all I ask :-)


  13. @Jwoo: Dunno. For sure all MPs were at it in the expenses racket but it’s clear that Libor rigging was started under Brown’s Chancellorship and continued when he became PM. It looks like Brown & cohorts were directly involved in it. The Tories were not involved…but it could still be going on since May/2010. That might suggest Cameron’s virtual silence (playing down the scam) is designed to protect the reputation of the City and BoE given their important role internationally and to the British economy. OTOH it could mean that Cameron is no less corrupt than Brown and is trying to trivialise the issue …..”there but for grace of God go I”.


  14. I’m only listening to Diamond on Internet radio…is it just me or does he come across as a slick-talking and evasive piece of sh*t? I mean, he keeps on failing to answer the questions and is waffling on and still referring to himself as CEO of Barclays! Did he forget that he resigned yesterday?


  15. he keeps on failing to answer the questions and is waffling on

    The politicians are the masters of that old strategy.


  16. @BT; Yes, that is interesting. I would hazard a guess that it goes along the same lines as ‘ He who lives in glasshouses…’ After all when Cameron came to power he had the opportunity to bury Labour but, was disabused of the idea by Threadneedle St. Perhaps we will find out why soon.


  17. Nicely put Caratacus, and that is the point, agree or disagree with JW but do it in an acceptable way and if you don’t like what he does, go elsewhere. The following from @ J S is I think just gratuitously offensive bollox.

    “If the Slog is the future, it strikes me that it is even more corrupt than the MSM. Cherry picking MSM stories to promote a theory that isn’t actually underpinned by any evidence. Corrupt. You are worse than Murdoch.”

    Personally I don’t always agree with JW but I ‘like’ what he does and what he says and the obviously damned hard work he puts into researching everything he writes about.

    Just saying.


  18. None fo me and i wouldn’t worry if there were, I would just ignore them as I do elsewhere. John has to monetise the Slog to keep it going. why should he do all this and be out of pocket?.


  19. Strange, no ads on refresh! You are absolutely right though, if JW wants to get a income to cover costs et c., he’s perfectly entitled to do so. ;-)>


  20. The MSM coverage of this is missing one key element:

    They are presenting it as though the MPs questioning him have some power or leverage over him. They don’t, he could (and has) buy & sell them like cheap meat. He’s evasive because he doesn’t give a f**k what they think and rightly assumes he’s bulletproof & a paid up member of a club that’s above politics in the standard sense.

    I’m just curious to see if he lets off any bombs for Merv or Camerlot. After all, he got his pay off, now hang a few of ’em on the way out.


  21. @Just Sayin’
    “If the Slog is the future, it strikes me that it is even more corrupt than the MSM. Cherry picking MSM stories to promote a theory that isn’t actually underpinned by any evidence. Corrupt. You are worse than Murdoch.”

    Don’t you think, just saying what you have, has blown your credibility.
    It’s important to have other points of view but, “worse than murdock”, come on!


  22. I’ll bet you 1oz of gold that he’ll go for the limp-wristed, whitewash option.

    Dave’s a spineless sheep of a PM. That’s not changing any time soon.


  23. “I’m just curious to see if he lets off any bombs for Merv or Camerlot. After all, he got his pay off, now hang a few of ‘em on the way out.”

    I must admit I watched his waffling for as long as I could stomach it, which actually wasn’t very long. But, I cannot forsee any circumstance in which he would ‘put the boot in’ because it simply isn’t necessary for him to protect himself and were he to do so he would lose the hold he has, probably quite expensively obtained, over all the useful idiots posturing and posing as they *try* to look tough.

    If any politician who really can’t be bought acrtually looked like he’d be a threat, I suspect Diamond would simply call in a few ‘markers’ to have him/her/them neutralised. That is the way it works isn’t it?


  24. See how those screams dwindle when it becomes
    obvious that the NY Fed Res. had a big hand in the
    fraud.Expect another Executive privilege claim on behalf
    of Turbo Tax Timmy,by Obumney.,when that happens.


  25. @ChrisL: Maybe ‘Britain’s most famous living artist’ has a solution. I don’t mean formaldehyde, if we could get hold of a tank and enough whitewash we could do it ourselves and pocket the proceeds ;)


  26. @Just Sayin’: No doubt you enjoy being the centre of attention; however, the fact that your twaddle is allowed to appear here is a clear demonstration that JW, whatever his faults may or may not be, is tolerant rather than corrupt. The enlargement of your ego may be of great concern to you but is tedious for the rest of us.


  27. oldasiahand: Does that then work in reverse for you? Do you think a citizen of a foreign country that lives in a state that has an extradition agreement with the UK and has bee accused of an extraditable offence should actually “under any circumstances” be shipped to Britain?

    Not a loaded question by the way, just wondering what you think.


  28. @JS

    And you do not even spot the weasel phrase in the quote you make. Making any ‘request’ into his interpretation of that request.

    You spend too long trying to make yourself feel clever to actually comprehend the activity behind the ‘evidence’ you select as making you ‘smarter than upir average bear’. A legend in your own mind.

    Not always totally agreeing with John – he has a sharp mind and an intellect way beyond your 4th grade attempts. (Get back to the school debating society and brush up on your skills.) – His opinions are always worth considering and in the main much better than those who have the dubious ‘authority’ to actually run the game. What is more. He has put up his own website which consistantly outshines the efforts of anything mainstream on the news front. John makes me ‘look’ smart because he is pretty much always ahead of the game and keeps my ‘knowledge’ ahead of the game (though I do try to push people to visit personally).

    Your ‘hindsite’ snipes are truly pathetic in comparision. the Murdoch rags and BBC fairytail book is just about your limit. In my most humble opinion :)


  29. It has to be said however that all these ‘witnesses’ who appear are portrayed as being ‘top of the game’ ‘major league’ players. Yet they become totally lifeless and incompetent when suddenly appearing on a stage which might show that their most valued asset is the ability to ‘stick together’ with those who have a self belief in thier ‘right to be at the big table’.
    They do not dump on each other – even if they get a slight detour in their chosen path. Because dumping on another of their kind would see them as not one of the club members. They are renumerated beyond the ‘desire’ for ‘revenge’ and never walk away ‘shamed out of office’. This is just a hiccup in Bob ‘Demons’ career. He’ll take a couple of months off and then be head honcho at another corporation which needs his kind of ‘experience’ in order to do a bit of book cookin’ and off the bottom deelin’. Well, thats my opinion anyway, for what its worth.


  30. On the contrary I LOVE THIS BLOG! It gives me plenty to argue with. I enjoy it. JW doesn’t respond to many of the comments so I doubt that he makes a habit of reading the comments.

    As to the claim of many that I’m doing it “for my own ego” or to prove “that I’m smarter than the average bear” – well I’m afraid your wrong. I do it because JW gets his facts badly wrong (or rather, he cherry picks those facts that support his case) and then his acolytes simply follow him blindly with closed minds. Sometimes the BBC tells the truth, sometimes even Murdoch tells the truth. Best of all are the FT, because their website actually links to the published documents so you can see for yourself what the truth is. All I am doing is simply pointing out those times when JW has “gone of on one” claiming all manner of conspiracy when there is absolutely no evidence of conspiracy and frankly no need for a conspiracy. No need to be exceptionally smart for that – the FT did it all for me and linked to the documents so I could check their veracity. I bothered to do the research on this particular topic, that’s all. JW has got it wrong, plain and simple.

    One more thing. My lovely wife (who is not really the sharpest tool in the box sometimes) was astute enough to realise that Barclay’s fiddling had done all of us a big fat favour and we should all be grateful, rather than keep kicking them. If there ever was a conspiracy to tell the world that UK banks were doing OK when LIBOR would have suggested otherwise, then it was a conspiracy for the common good and I’m glad of it. It was also a conspiracy to reflect the reality that UK banks were in fact solvent having already been funded externally, when LIBOR suggested they weren’t solvent. It was a conspiracy no worse than the conspiracy going on right now that pretends EURIBOR reflects Eurozone interbank lending when no such lending is going on in large parts of the Eurozone. I find it hard to get as upset as so many of you, about a “fix” that was for the common good. A “fix” that reflect the truth better than not fixing.


  31. JS
    ‘My lovely wife (who is not really the sharpest tool in the box sometimes)’
    Tells us all we need to know, I fancy.


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