Friday, July 13, 2012

Now they say they knew about Lloyds too!

New York Fed Says It Knew Barclays Underreported Libor

"A Barclays employee explained to a New York Fed staff member that “Barclays was underreporting its rate to avoid the stigma associated with being an outlier with respect to its LIBOR submissions, relative to other participating banks,” the New York Fed said in a statement posted today on its website". (...and now Lloyds too). It seems the NY Fed is about as corrupt as some african countries I've visited. What a bunch of "Bankers".

Posted by alan @ 10:16 PM (1730 views)
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6 thoughts on “Now they say they knew about Lloyds too!

  • Someone was working late tonight. Just released:
    Lloyds said in a statement: “As with many others in the sector, the Group is assisting various regulators in their ongoing investigations into the setting of the Libor”. “Until these investigations are completed, it would be inappropriate for us to comment any further.”

    Yeah, right!

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  • Telegraph has just posted:
    “When asked about Libor last month, Sir Mervyn said there had been discussions to reform the system in 2008 but “there was very little support… among the markets, among banks and, indeed, among our overseas colleagues to make the change”. Those comments now look difficult to square with Geithner’s email. Now US treasury secretary, Geithner will himself be accused of failing to blow the whistle loudly enough given how clear cut the problems were, but at least he put it to his lips. Sir Mervyn, together with Lord Turner and Hector Sants at the FSA, look like they couldn’t even find one”.

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  • all the banks were at it, all encouraged by corrupt gordon brown and his lousy government

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  • Of course the Fed knew about it. They knew about it and considered it criminal before the UK did. In fact, they forced the FSA’s hand. After all, it cannot be that the US sees this rate fixing as criminal but the UK doesn’t simply because …. everyone in the City (including the regulator and central bank) knew it was going on.

    It was an open secret in the city for years that this was happening. The situation now is that whole states are looking to sue these banks where over 45% of mortgages in the US are based on Libor.

    This is to banking what phone hacking was to tabloid journalism. The next watershed mark will be when the Fed and the criminal investigation in the US pins the blame on the Bank of England and FSA as complicit entities.

    Then it gets really interesting.

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  • general congreve says:

    @4 – Yep, the dominoes are lining up nicely.

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  • It is interesting to see how the subject of potential mis-reporting of Libor only came to light in 2008. In a way, before the financial crisis, no one really cared about the Libor reported by the banks. This was only a theoretical level, hence the differences between the banks were negligeable. Of course with the funding crisis, these reporting could have been manipulated even more and again no one would care as no one (not even even the BoE) would be able to prove these levels were indeed false.I think the real problem here is not the false reporting of theLibor levels by most banks if not all, it is simply the potential collusion with the BoE who new who was at risk and who was not. It has been recently revealed with Barclays when the BoE asked them why they were reporting such high Libor. Suddendly barclays started lowering their level to match the others. That is in my view the real issue here, but I doubt it will be investigated properly as the BoE would be a prime suspect in the affair.

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