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Bank scandal a multibillion-dollar fraud

BRIAN DOHERTY, Marshfield   Patriotledger.com    Sep 06, 2012

What’s this nonsense about deregulation? Who are we to tell these financial experts how to run their businesses?

But when a center right magazine like “The Economist” talks about “the rotten heart of finance” in one headline, uses the term “banksters” in another, and says the scandal may be “The biggest security fraud in history” you get a sense it’s a really big deal.

When the Huffington Post reports about Libor documents, which date back to 2007 showing the Federal Reserve was fully aware that banks were lying about their borrowing costs and chose to take no action against them, then it is a really big deal.

This widespread manipulation of an interest rate set by banks which self-report what they’ll pay to borrow money for short periods, may have cost borrowers and state and local governments untold billions of dollars. ...

This group of “bangsters” is just in the U.K., where 16 institutions are currently under investigation for rigging Libor, including major U.S. and Euro banks.

Was anyone fired or jailed? ...

This will drag on for years, there will be a lot of blather and the scenario will repeat down the road. But we’ve been here before and new deregulation statutes will be savaged by lobbyists and co-opted elected officials again. Stick around.

BRIAN DOHERTY
Marshfield

 

Last modified onTuesday, 28 May 2013 07:23
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