Well I couldn't figure it out because never in my wildness imagination could I have dremt up this scenario and nobody's talking because on this side of the pond at least I've been asking questions in the wrong places. It has been reported that the guys looking into this are at justice not in any of the financial groupings, and nobody in the banks will say a word. I still haven't a clue who could have benefitted from all of this or how but the parliamentary hearings tomorrow starring Bob Diamond should be something to watch. I'm getting up early to see if the Beeb USA is going to carry them. The difference between the select committee over there and the clowns we have over here is that they know what it is about which they are speaking. The also tend not to take prisoners. Should be great theater.
Tomorrow is Independence Day (or Succession Day as I used to tell the Brits years back) smack in the middle of the week which means there aren't enough people around, being paid for what they are not doing to cause a crisis. Makes one feel comfy, that. Of course Euroland is alive and well but its all gone quiet over there as well. Keep in mind that if there is any evidence of a conspiracy thing involving LIBOR the big Eurobanks will be looked at as well as they were among the quoting class. I must admit, having had the utmost respect for the Bank of England throughout my career, I certainly hope that the reputation of that institution is not tarnished in whatever sort of a mess we find ourselves. However, somewhere between it and the FSA (and Whithall and/or No. 10) may be the answer. We're off on Thursday for the triplets' birthday but I intend to follow this one. Stay tuned.
Again, BARC may NOT be the story, but rather the pre-amble to the story. From DoJ press release:
ReplyDeleteThe agreement and monetary penalty recognize Barclays’s extraordinary cooperation. Barclays made timely, voluntary and complete disclosure of its misconduct. After government authorities began investigating allegations that banks had engaged in manipulation of benchmark interest rates, Barclays was the first bank to cooperate in a meaningful way in disclosing its conduct relating to LIBOR and EURIBOR. Barclays’s disclosure included relevant facts that at the time were not known to the government. Barclays’s cooperation has been extensive, in terms of the quality and type of information and assistance provided, and has been of substantial value in furthering the department’s ongoing criminal investigation. Barclays has made a commitment to future cooperation with the department and other government authorities in the United States and the United Kingdom.
....
The agreement and monetary penalty further recognize certain mitigating factors to Barclays’s misconduct. At times, Barclays employees raised concerns with the British Bankers’ Association, the United Kingdom Financial Services Authority (FSA), the Bank of England, and the Federal Reserve Bank of New York in late 2007 and in 2008 that the Dollar LIBOR rates submitted by contributing banks, including Barclays, were too low and did not accurately reflect the market. Further, during this time, notwithstanding Barclays’s improperly low Dollar LIBOR submissions, those submissions were often higher than the contributions used in the calculation of the fixed rates.
As a result of Barclays’s admission of its misconduct, its extraordinary cooperation, its remediation efforts and certain mitigating and other factors, the department agreed not to prosecute Barclays for providing false LIBOR and EURIBOR contributions, provided that Barclays satisfies its ongoing obligations under the agreement for a period of two years. The non-prosecution agreement applies only to Barclays and not to any employees or officers of Barclays or any other individuals.
So, BARC was the "good bank" and presumably there are less good banks.
Corrigan shot Gutfriend; the BoE whacked Diamond, but when DoJ gets pissed, well, remember BT?