firstcause Post time 2012-6-29 17:22:45


More UK banks probed for interest rate fixing scandal

Thu Jun 28, 2012

British banks including HSBC and Royal Bank of Scotland are subjects of investigation for the alleged financial market manipulation that led to fines of £290 million against Barclays Bank, says the British Treasury chief George Osborne.

In a statement to MPs on Thursday June 28, Osborne said that the two British banks along with Switzerland's UBS and US bank Citigroup are also being probed for allegedly providing false figures on key interest rates upon which mortgages and consumer loans are priced.

Announcing that new criminal offences will be created to punish bankers guilty of misconduct, he added that the law needed tightening because interest rate manipulation at the Barclays scandal was not a criminal offence.

On June 27, the US and British regulators imposed the fines on Barclays for manipulating the key interest rate index, the London Interbank Offered Rate (LIBOR), to its advantage between 2005 and 2009.

Osborne criticized Bob Diamond, the chief executive of Barclays, saying Diamond had questions to answer about the events that led to the bank's record-breaking £290m penalties for manipulating key interest rates.

Welcoming the move by Andrew Tyrie, chairman of the Treasury select committee, to call Diamond to give evidence to MPs, Osborne said he wanted to know "what did he know and when did he know it?"

Diamond, who is facing calls to step down over the scandal, issued a statement apologizing for the events that have led to a 16 percent fall in the bank’s share price, saying, "Nothing is more important to me than having a strong culture at Barclays. I am sorry that some people acted in a manner not consistent with our culture and values."

Meanwhile, in a speech to the Unite union, Labour leader Ed Miliband, called for a criminal investigation into the setting of the interest rates, saying those responsible should face the "strongest punishment".

"When ordinary people break the law, they face charges, prosecution and punishment. We need to know who knew what, when, and criminal prosecutions should follow against those who broke the law," Miliband said.

firstcause Post time 2012-6-29 17:23:30

Comment by Symon:

They are fined a few hundred million but by how many billions did they profit from their criminal activity. The system is a joke. Time to put a stake through its heart and dump it in a pool of holy water scented with garlic.

firstcause Post time 2012-6-29 17:33:16

Comment by nonjurer:

Honesty seems to have been almost entirely replaced by self-interest in every sphere of business or professional life. Politicians are caught out defrauding the taxpayer, protest that they were just following the
rules (so that – obvious, isn’t it? - there was no need to make any moral judgement of their own), and their colleagues then commiserate with them for their bad luck!

And the judges, who so forthrightly declared that examples must be made of “rioters” who stole a pair of trainers? They did not find the behaviour of the handful of MPs who were not actually allowed to escape scot-free so utterly reprehensible as to impose the swingeing sentences that would have met the public's sense of justice, unlike a previous generation of judges - compare the almost apoplectic savaging by Quintin Hogg/Lord Chancellor Hailsham of John Profumo on TV in 1963 “just” for lying to Parliament.

Who would have expected teachers, examiners and Inspectors to have been caught up in this? Well, politicians have provided them with an incentive. Getting at least "Good" in an inspection is the only thing that matters. Since the inspectors are in a school for only a matter of hours in 3 years, the paperwork is all. When an inspection is inevitably only a term or so away, the education of the children can be left to unqualified teaching
assistants while the teachers are taught by Inspectors in their other lucrative guise of consultants(bought in by Head Teachers) how to present their paperwork and teach their observed classes in the way that will earn them good marks, regardless of the fact that they normally use different methods because they find their pupils progress better that way. And this in high-moral-ground religious as well as non-denominational schools.

This, and so much other dishonesty, is the product of the perverse incentives offered from top to bottom in public life by those same politicians who degraded Fred Goodwin and are now gunning for Barclays. On what
models or what principles are the younger generation supposed to base their morality?

firstcause Post time 2012-6-29 17:35:18

                        Comment y biaaritz:

Depressing- Leveson has exposed how corrupt our elites are including journalists, politicians, police officers now we have the Bankers. I for one am sick of it.  Those people should be prosecuted where necessary.

Now is the time to put a stop to this rule by corrupt elites. We should be setting a better example to our young people or there may well be Revolutions within a few years.

Ratfink Post time 2012-7-4 12:19:06

firstcause Post time: 2012-6-29 17:35 static/image/common/back.gif
Comment y biaaritz:

Depressing- Leveson has exposed how corrupt our elites are including journalists, politicians, police officers now we have the Bankers. I for one am sick of it.  Those people should be prosecuted where necessary.

Not all are corrupt by any means. However I agree entirely that the situation needs some pretty radical reforms and ones that the politicians, magnates and bankers in particular will not like.

Banking globally have become an incestuous pit of self serving money and power hungry acolytes who lie, manipulate and thieve where ever they can. Add to this the lack of transparency in dealings and outright market manipulation and it's a recipe for global disaster.  We can actually blame the USA for this mess, it was the USA that first deregulated banking in the 1980s and most countries followed suit. Deregulation allowed the banks to start playing paper shuffling games of such complexity that now almost no one knows who owes whom what. Just how this is to be countered I do not know, but re-regulation to a level of tightness where if a bank wants to sneeze it must give 3 months notice in quadruplicate would be a good start.

As for politicians, hang the bloody lot of them. They are mostly parasites on the human race anyway and yet most people like good little sheep keep voting blindly and will not think for themselves. Of course it could be argued that we have no fit candidates in most parties anyway.  

Don't get me started on the mass media as my views on media conglomerations are unprintable, especially any that are owned by News Corp.

greendragon Post time 2012-7-4 12:44:13

Banking crisis again!

One has to be DISCIPLIINED fiscally in our present world order.
Able to handle the massive TINY BUBBLES in the global economy.
We had bubble bursting in the EUROZONE, there are indications of a CHINA local government debt
bubbles too. In the horizon, there is yet NEWS from the BIG APPLE itself, the United States!


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2-00-1 alert! Home Guards

greendragon Post time 2012-7-4 12:45:29

Kbay Post time: 2012-6-30 10:20 static/image/common/back.gif
Anglo bankers are natural born thieves, just like their ancestors that founded the East Indian Compa ...

You mean like the LEGEND of ROBIN HOOD?

ha ha ha


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