Central Banks Go to Great Lengths To Prop Up Insolvent Banks … and Put Lipstick On a Pig
We noted in 2012 that bot the Bank of England and Federal Reserve knew about the Libor interest rate rigging scandal by the big banks.
Newly-released minutes of the meeting of the Fed’s Open Market Committee confirm that the Fed knew about the Libor interest rate manipulation.
And Bloomberg reported earlier this month:
Bank of England officials told currency traders it wasn’t improper to share impending customer orders with counterparts at other firms, a practice at the heart of a widening probe into alleged market manipulation, according to a person who has seen notes turned over to regulators.
Traders representing some of the world’s biggest banks told officials at the meeting that they shared information about aggregate orders before currency benchmarks were set, three people with knowledge of the discussion said. The officials said there wasn’t a policy on such communications and that banks should make their own rules, according to the people.
This isn’t some minor case of stretching the truth a little bit … The Libor interest rate scandal was the biggest financial scandal in world history:
- The big banks have conspired for years to rig interest rates … upon which $800 trillion in assets are pegged
- Local governments got ripped off bigtime by the Libor manipulation
- Even though RBS and a handful of other banks have been fined for interest rate manipulation, Libor is still being manipulated. No wonder … the fines are pocket change – the cost of doing business – for the big banks
The Washington’s Blog