Why aren’t the network newscasts or the cable news channels reporting on this? This has been called the biggest financial scandal in history, and yet, barely a peep from those who are supposed to inform us.
The same people who brought us the economic depression of 2008 are involved in this newest case of organized fraud. The biggest names in banking have been manipulating the LIBOR, (London Interbank Offered Rate), for years. The LIBOR is the rate that banks charge each other to borrow money.
The good news here? Since it is bank on bank fraud, these newest financial transgressions are actually being investigated, (as opposed to the non-investigations of the fraud perpetuated on the average person from 2007 to today). There appears to be an unwritten rule in the world of finance: As long as the banks are stealing from the “little guy”, the regulators and those who are supposed to protect our assets will look the other way. When you begin stealing from another financial institution…well, that is a whole different thing.
My hope is that those investigating this will accidentally stumble across evidence of the fraud perpetrated on the average person and then will finally have to do something about it.
From Spiegel Online:
‘”The Libor manipulation is presumably the biggest financial scandal ever,” says Majcen, a man with slightly disheveled-looking hair and Viennese sarcasm. Yes, he says, it did shock him that something like this was even possible, namely that a group of international banks had been manipulating interest rates for years. But Majcen takes a matter-of-fact approach to it all. As a financial professional, he is only one of many who want to get back the money that they feel they’ve been cheated out of.”
“Deutsche Bank and more than a dozen other financial giants have come under sharp criticism due to the alleged manipulation of the Libor ( London Interbank Offered Rate), a benchmark interest rate. Some are even referring to the banks that are instrumental in calculating that rate a cartel, the sort of vocabulary not normally associated with the financial industry.
Regulators are using terms like “organized fraud.” European Justice Commissioner Viviane Reding has suggested that bankers ought to be called “banksters.” But in the case of some agencies, especially in New York and London, the outcry is also convenient; it diverts attention away from their own failures. For years, regulators overlooked what was happening right in front of their eyes. (Emphasis added). Hmmm, that sounds really familiar to me. Oh, yeah, Wall Street had the same problem.
Now that the authorities have woken up, they are aggressively pursuing the offenders — and are reaching all the way up to the boardrooms. More than half a dozen government agencies, from Canada to Japan, are investigating the case.”
Read the rest of the article here: Behind the Scenes in the Libor Interest Rate Scandal