ROUND 2

Here we go again.  The thugs in New York are now going after about a dozen American and non-American banks in the great Libor scandal right in the middle of a coordinated investigation by the Fed, Treasury and the Brits.  This is simply another attempt by the State to extort money from the industry before the people who should be charged with the sole investigatory powers have a chance to do their job properly.  It is the attorney general's office this time but this mob is interchangeable: they slugs--absolute bottom feeders, and while Washington should be passing the word that this is not helpful The Leader's handlers believe that being Democrats, the actions in New York will aid in the Bash the Banks campaign theme.  There will be more to come driven entirely by politics, hubris and greed.

Of course one of the things that shoud be considered is why in the hell any bank would wish to operate under a New York State charter or for that matter have all of it's operations in New York?  To the extent I could, I'd run like a thief if I were a CEO for many of the functions in which banks engage, with today's modern communications, there is simply no need to be physically located in New York; one can push a button or key a computer in, say, Indianpolis (which I always use as an example); Nice people, good neighborhoods, good schools, WAYYYY cheaper COL, good sports and good culture...not to mention cost of doing business and taxes.

The announcement of the State's actions just came out so I'm going to read up on it before comment anymore.  Tomorrow for more  on this...be here.

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We noted today in the WSJ that Greece's bill issuance of yesterday went off with a 1.3x coverage ratio enabling the country to fullfill it's current obligations to the Troika.  We now have the sight of a soverign nation managing it's debt with 13 day paper treated as a victory.  As advised here,  the buyers were all banks who immediately discounted the stuff with the ECB and all went merrily away. It was also revealed that the Greek banking system's level of unperforming loans is about 20%.  No chance.  Trust me, it's way higher; non-performings are always underreported.  No matter, who.  The system at those levels is bust anyway it is evaluated.  Surprisingly (or perhaps not so), there was nary a peep out of the great high Poo-Bahs of Euroland.  Could it be that no one cares because the decision has already been made?  Riddle me that one Bat Man...in keeping all this in the world of fantasy.