Barclay's LIBOR manipulation

Graham_Devon

I've watched the reports on this one now, ad read some of the comments etc.

Surely if this happened in any other business, prison would be on the cards? Surely if we fiddled our tax returns etc (I know not the same thing, but something we have a duty and control over) we couldn't just say "Sorry, I'll forgoe my bonus this year, naughty me".

The fine may be the biggest find ever given, but it's tiny for the crime and their ability to pay.

Why do we have to keep asking for these people to resign? Can't we force it? Surely this is illegal?

I know (by way of links) a trader who tried to manipulate costs to his advantage (not a bank trader, car trader) and he went to prison for 16 months.

Apparently the FSA knew about this in 2004!!

Generali

michaels wrote: »

I know people on here were telling us at the time of the later manipulation which was used to make banks appear more credit worthy that banks could not actually borrow from each other at the quoted rates. I will do a search sometime but it was when I questioned why SVRs were not falling in line with libor..

purch is the answer. Maybe he didn't answer that specific question but it was definitely his hobby horse (no offence meant purch old bean).

JasonLVC

thescouselander wrote: »

This is completely outrageous - fraud on a massive scale pure and simple. These people should be facing criminal charges instead of getting a slap on the wrist.

I have to agree. Whilst fraud is incredibly difficult to prove and even harder to prosecute, it does look the board executives were knowingly aware and authorising this practice.

Surely then there should be enough proof with that alone to provide for a criminal case against the executives of Barclays.

I don't see why a fraudster should be allowed to buy their way out of a prosecution....ironically ussing the profits they made from the scam to fund the pay-off/fine imposed upon them.

The FSA appear to be hopelessly useless then and now, they've screwed up with Kaupthing and the Tchenguiz failed prosecution and now appear to have allowed Barclays and others to get away with large scale fraud.:mad:

homelessskilledworker

Why have the police not been involved yet, some little black youth steals a pair of trainers and gets six months, these worms are probably making £100k's if not millions by fraudulant means and get a clip across the ear.

ChrisDuane

wotsthat wrote: »

I thought everyone knew LIBOR was a fiddle.

I thought everyone knew there are no free markets any more. The entire financial system is manipulated. The regulators are in on it. There is a revolving door of the regulators and the ones they are regulating.

There should be someone regulating the regulators who will not take bribes no matter how big. Then these manipulations crimes in progress would have to come to an end.

JasonLVC

Graham_Devon wrote: »

I know (by way of links) a trader who tried to manipulate costs to his advantage (not a bank trader, car trader) and he went to prison for 16 months.
!!

We hear of 'rogue traders', like Nick Leeson and Jerome Kerviel of SocGen who both brought their banks to their knees and both were jailed for their 'frauds'.

It makes you wonder

i) were these guys just scape goats under orders to do what they did, a bit like a spy in enemy territory if the mission works you get a medal if not, government denies your existence?

ii) if the traders can be held accountable for their actions and jailed for it, then the FSA should be pursuing each and every individual involved and prosecuting accordingly. Although I guess if these emplkoyees are in the US branch of barclays then they'll probably be outside of the FSA grasp.

Its very nice of the board to not take their bonues this year, but what about the other years. Diamond in 2009 justified his £20m bonus by saying he had steered the bank through economic turmoil but it now seems he was simply fudging the figures http://www.youtube.com/watch?v=eLWGVe8NUIE

CLAPTON

There is little chance of anyone being prosecuted in the UK; just promising not to do it again will be sufficient

in the USA is might be different but they have probably agreed a plea bargain deal as part of the disclosure.

Generali

homelessskilledworker wrote: »

Why have the police not been involved yet, some little black youth steals a pair of trainers and gets six months, these worms are probably making £100k's if not millions by fraudulant means and get a clip across the ear.

You are forgetting the roots of the word democracy. It is from the Greek.

Demos: rule by rich white men
Cracia: wearing expensive blue suits

If rich white people steal they get asked not to do it again. If poor people steal they go to gaol. Heaven help the rich black man accused of something.

kabayiri

'Interesting' take this morning from David Buik - BGC partners, on the radio.

He basically said that since the wholesale money market didn't really exist post-crunch, the LIBOR was indeed a fictional concept. How can you be guilty of manipulating fiction?

Whatever the cause I definitely know the solution. MORE self regulation. State regulation won't work - the banks continually tell us this.

ILW

circus_48 wrote: »

Will Barclays Mortgage borrowers get money back??

#

Possibly if they have a Libor tracker and it can be shown that rates were kepy higher than should have been. It does appear than they were under and overstated though at different times.