LIEBOR - who's to blame

DiggerUK

CLAPTON wrote: »

every party was in favour of light touch financial regulation except the loony left who it appears have been proved correct......

As one of the last of the loony left, I would like to point out, that the country has been brought to it's knees by the masters of the universe, who did not even need to take one day of industrial action!

As to LIBOR, don't forget that when the 'credit crunch' was the headline of the moment the LIBOR rate was referred to, with some irony, as the rate that banks wouldn't lend to each other.
..._

Wookster

DiggerUK wrote: »

As one of the last of the loony left, I would like to point out, that the country has been brought to it's knees by the masters of the universe, who did not even need to take one day of industrial action!

As to LIBOR, don't forget that when the 'credit crunch' was the headline of the moment the LIBOR rate was referred to, with some irony, as the rate that banks wouldn't lend to each other.
..._

The notion that this recession is caused by the bankers is just lazy, ignorant and wrong.

vivatifosi

Adair Turner on Andrew Marr at moment. Said that LIBOR is not an instrument that is covered by criminal law, so they have taken the strongest sanctions that they can.

He worded this more carefully than I am here, but in effect said that there was collusion between 2005 and 2008 and that it has since stopped. The investigation began in NY under the CFTC in 2009. Enforcement lawyers at the FSA have been working on it since.

Marr: is there collusion between banks? Turner: we cannot use criminal powers at the FSA in relation to this due to non-qualifying instrument (unlike say equity prices), however if there has been straight fraud, the SFO can investigate this.

Marr will reputation of London suffer? Turner: most things happened some time ago, but lets be clear, the problem came on top of other things, such as problems in the derivative markets, etc.

Marr: should banking be separated? Turner: splitting banking to households and small businesses as proposed by Vickers goes some way but does not help the whole system and does not address these probelms as a lot of what falls outside the separated system, such as FX, is also important to the real economy and bad behaviour should be driven out of that side as well.

Marr: how do you change the culture? Turner: government looking at whether we should change the law with liability to directors, as recommended in my report. Turner: yes, could reasonably be described as a more heads will roll proposal.

(please note that the comments are not direct, rather my interpretation given typing speed etc).

Wookster

I cannot see how a sane person could not now find the case for complete separation of retail and investment banking overwhelming.

vivatifosi

Wookster wrote: »

I cannot see how a sane person could not now find the case for complete separation of retail and investment banking overwhelming.

That wasn't the inference, so sorry if I gave that impression. It's more the case that he said if you separate banking (which he didn't seem against), don't think that will bring an end to problems as investment banking will still need heavier regulation as people depend on it.

Tbh I found this somewhat reassuring. There's nothing that strikes fear into a normally bland and risk averse pension fund trustee more than hearing we are expecting to do right by the law of looking after our pensioners and future pensioners and yet put our money in a casino.

DiggerUK

Wookster wrote: »

The notion that this recession is caused by the bankers is just lazy, ignorant and wrong.

Printy printy me old china, printy printy caused this mess.
Nothing else. ( providing you ignore the shut down of industry...without strikes)
Business demanded it, government allowed it, banks facilitated it, and we live with the consequences.
..._

chewmylegoff

LIBOR setting isn't a regulated activity at all. That is a result of the regulated activities order 2001...

GeorgeHowell

Wookster wrote: »

The notion that this recession is caused by the bankers is just lazy, ignorant and wrong.

They were a pretty big factor though. Money to the economy is like oil to a car engine -- it doesn't make it go but it pretty quickly seizes up without it. The banks are the oil pump, and it has faltered badly.

thor

GeorgeHowell wrote: »

They were a pretty big factor though. Money to the economy is like oil to a car engine -- it doesn't make it go but it pretty quickly seizes up without it. The banks are the oil pump, and it has faltered badly.

Not only that but because of their greed everybody is scared they might lose their money and even the banks do not trust each other. As a result we have a massive lack of confidence both public and corporate and investment plummets southwards.
To think that the Bankers were not the MAIN factor is what is really lazy, ignorant and wrong. Such an apologist mentality has the smell of self interest in my opinion.

vax2002

they will blame each other, the Banks OWN all 3 main parties, bought and paid for.