As the investigation into the LIBOR interest rate-rigging in the United Kingdom becomes a financial scandal of tsunami-like proportions, some analysts are openly wondering whether 16 of the world's largest banks have perpetrated the biggest fraud in history.
With the public coming round to the global significance of banks potentially colluding like a cartel to favourably set the LIBOR, those same analysts predict lawsuits worth tens of billions being brought against the Western world's largest financial institutions by average consumers.
Early analysis suggests that for a period of several years before and after the 2008 financial crisis, the London interbank offered rate (LIBOR) was manipulated to such an extent that a family with a $100,000 mortgage would have been $50 to $100 worse off a month because of the fixing.
As the fallout from Barclay's $453 million fine for admitting influencing the LIBOR hits the U.S., Europe and Japan, banks such as Citigroup, JPMorgan Chase, HSBC and Deutsche Bank have admitted they are now under investigation for interest rate manipulation.
Economist and financial analysts are predicting that as the scale of the potential fraud becomes clear, the fines and litigation that engulfs the banking sector could dwarf the penalty handed to Barclay's and even herald further, more stringent regulation on Wall Street and multinational banks.
So long as big finance will do almost anything to goose its own profits and bonuses, 'self-regulation' is a dangerous myth.
'It should give way to sound law enforcement, which in economic terms is government regulation.'
So much for the libertarian argument that free markets successfully regulate themselves.
People in finance and banking make me sick. Lawyers and these douchebags in finance are fighting for the top place in the slimiest profession with marketing a distant third. Almost wish the whole system would crash and burn.
who in government is not a crook? so who do we turn to now?
No one, I think we have to live with degrees of corruption whether it's from the free-market or government regulations. Nothing is 100% despite what the supporters say. You add humans to any idea and there is bound to be corruption, it's that simple.
Last edited by ikonoklast; 07-15-2012 at 06:12 AM..
Reason: Automerged Doublepost
I'll tell ya when the uproar will happen. When y'alls go withdraw "your money" from an ATM and the screen is black...or when you go to pull money out of "your bank" and have to wait in line for 3 hours only to get half of it.
Guess people might then realize what those notes are, what they're worth and who owns them.
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