Libor Fraud - What else is going on??

[Four Litre]

Now the Libor fraud has come out (finally), I have a sneaky suspicion that this is the tip of the iceberg when it comes to financial manipulation of financial products/stocks etc.

Will be interesting to see what else comes out over the coming months, I for one would like to see some coverage of the Gold and Silver price manipulation, buying and selling paper stocks that dont exist, selling vast paper (read made up) gold/silver to keep the price down, this has been widely reported for some time now but again, seems to be brushed under the carpet and ommitted from mainstream press.

Im always under the impression theres no smoke without fire...

Not going to put all the links in here but

http://www.google.co.uk/#hl=en&output=search&a...

[AndrewW-G]

Given where the instructions for the LIBOR thing came from, should it not be representatives of the libour party who are being scrutinised?

[turbobloke]

Guam said:

AndrewW-G said:

Given where the instructions for the LIBOR thing came from, should it not be representatives of the libour party who are being scrutinised?

After this afernoon's select committee gathering it may become known as the Libor Party.

[Mandat]

A rumour that I've heard from a banking source is that there is a lot more scandal still to come out, all of which will be blamed on poor oversight by the FSA, which will see the FSA being replaced by a new regulatory body sometime next year.

[fido]

turbobloke said:

After this afernoon's select committee gathering it may become known as the Libor Party.

I think this could end quite well. Bob blames BoE. BoE spills the beans on Millipede, Balls, Vadera. Everyone's a winner.

Sorry, i forgot to mention all their cronies in the FSA as well.

[domxe]

Guam said:

AndrewW-G said:

Given where the instructions for the LIBOR thing came from, should it not be representatives of the libour party who are being scrutinised?

Like the world's only self-healing Paint Protection Film it will self heal and everyone will forget it ever happened Unfortunately...

[anonymous-user]

Mandat said:

A rumour that I've heard from a banking source is that there is a lot more scandal still to come out, all of which will be blamed on poor oversight by the FSA, which will see the FSA being replaced by a new regulatory body sometime next year.

The break-up of the FSA has been in the pipeline for the last 18months or so. As of January 2013 FSA diverges into the Prudential Regulatory Authority under the BofE umbrella looking after about 2,000 banks, building societies and credit unions, plus other deposit taking institutions.

And the rest of the financial sector (appx 27,000 Firms) will be looked after by the Financial Conduct Authority, which is similar to the current FSA but more focussed on consumer protection, markets and market conduct.

http://www.fsa.gov.uk/pubs/speeches/boe_pra.pdf
http://www.fsa.gov.uk/pubs/events/fca_approach.pdf

So some of the big banks will be doubly regulated by both, with various cross-overs throughout.

[johnfm]

fido said:

turbobloke said:

After this afernoon's select committee gathering it may become known as the Libor Party.

I think this could end quite well. Bob blames BoE. BoE spills the beans on Millipede, Balls, Vadera. Everyone's a winner.

Sorry, i forgot to mention all their cronies in the FSA as well.

Sadly, i don't think it will happen.

[AshVX220]

I don't understand why people are surprised.

it appears to me that there is corruption absolutely everywhere, we have this banking issue, we have politicians fiddling their expenses and flipping properties left, right and centre and we have Journo's hacking into peoples phones to get a "scoop".

And last night ITV's banking journo had the absolute audacity to suggest to Barclays CEO that people can't trust them anymore!!

I'm afraid I don't trust any of the above, in the same way I don't trust many in the world of sport, Bernie, the Olympic organisers etc (after the ticket and Kick boxing selection debarcle).

They say power corrupts, and I have no doubt that most people in the public eye that have some kind of power are corrupt. The simple answer for me is to not trust such people, that way I'm not so surprised when it all comes out in the open.

[BlackLabel]

What else is going on?

Well this latest one has even surprised me.

Not only were Lloyds a part of the Libor-rigging scandal but they also ripped off the Bank of England whilst they were being bailed out - by rigging the 'repo rate'.

Ripping off the very scheme that saved your institution from going bust - how much lower can you go!

bbc said:

Part of the FCA's fine for Lloyds, was for serious misconduct over a programme introduced during the financial crisis known as the special liquidity scheme (SLS).

The SLS was set up in 2008 by the Bank of England to let banks temporarily swap assets that were difficult to trade.

Lloyds also manipulated the Repo rate benchmark, which is the interest rate that the Bank of England uses to buy back government securities from commercial banks, said the FCA.

In a statement, the watchdog said the "manipulation of the repo rate benchmark in order to reduce the firms' SLS fees" was misconduct of a type "not seen in previous Libor cases".

Tracey McDermott, the FCA's director of enforcement and financial crime, said that Lloyds and Bank of Scotland were a "significant beneficiary" of financial assistance from the Bank of England through the SLS.

"Colluding to benefit the firms at the expense, ultimately, of the UK taxpayer was unacceptable.

http://www.bbc.co.uk/news/business-28528349

http://www.theguardian.com/business/2014/jul/28/ba...

Edited by BlackLabel on Monday 28th July 15:58

[fido]

This stuff has been going on for ages - remember the film Dealers in the 80s(!) You cannot rely on a group of companies to set a price for that industry. If it would be like asking the major breweries to set a Beer Index. I guess no one expected LIBOR to be so widely used. Feel a bit sorry for the individual traders as it was much a fault of the system they were working in, and the bad timing (scapegoating of the Banks following the credit crunch).

[kev1974]

What happens to the fine money? Who gets it / where does it go?