Banking Its A Scandal

Is there a scandal? The Libor scandal:>

The Libor scandal is a series of fraudulent actions connected to the Libor (London Interbank Offered Rate) and also the resulting investigation and reaction. The Libor is an average interest rate calculated through submissions of interest rates by major banks in London. The scandal arose when it was discovered that banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than they were.[3] Libor underpins approximately $350 trillion in derivatives. It is controlled by the British Bankers’ Association (BBA).[4]

The banks are supposed to submit the actual interest rates they are paying, or would expect to pay, for borrowing from other banks. The Libor is supposed to be the total assessment of the health of the financial system because if the banks being polled feel confident about the state of things, they report a low number and if the member banks feel a low degree of confidence in the financial system, they report a higher interest rate number. In June 2012, multiple criminal settlements by Barclays Bank revealed significant fraud and collusion by member banks connected to the rate submissions, leading to the scandal.[5][6][7]

Because Libor is used in U.S. derivatives markets, an attempt to manipulate Libor is an attempt to manipulate U.S. derivatives markets, and thus a violation of American law. Since mortgages, student loans, financial derivatives, and other financial products often rely on Libor as a reference rate, the manipulation of submissions used to calculate those rates can have significant negative effects on consumers and financial markets worldwide.

On 27 July 2012, the Financial Times published an article by a former trader which stated that Libor manipulation had been common since at least 1991.[8] Further reports on this have since come from the BBC[9][10] and Reuters.[11] On 28 November 2012, the Finance Committee of the Bundestag held a hearing to learn more about this.[12]

George Osbourne at JP Morgan offices.

AND its JP Morgan who suffers or do they? :>

America’s scandal-racked JP Morgan Chase smashed Wall Street’s forecasts yesterday with the help of a revival in so-called simple banking.

The bank, the world’s biggest by assets, has been reeling in the wake of a trading scandal in which Bruno Iksil, nicknamed the London Whale, lost $5.8bn (£3.6bn) through derivatives trades.

Yesterday, however, a boom in simple mortgage lending helped the bank to roar back and post a $1.4bn rise in third-quarter post-tax profits, which came in at $5.7bn.

The bank’s earnings per share of $1.40 were well ahead of analysts’ forecasts of $1.21, and the 34 per cent rise in profits came in a traditionally quiet quarter for earnings.

Simple banking simple mortgage lending, seems to me “simple” equals the ordinary person. AND:>

The Royal Bank of Scotland and Lloyds Banking Group could receive a major discount to possible UK libor-rigging fines given each lender is substantially owned by the British taxpayer, legal experts have told the IBTimes UK.

RBS, which is 83 percent owned by the government, is said to be within days of agreeing a settlement with US and UK authorities that could mean around £500m ($785m/€577m) in fines. Lloyds, which is 41 percent owned by the taxpayer, is one of a number of banks being investigated by US and UK authorities for its role in the scandal but has yet to reach a settlement.

JP Morgan is the biggest bank in the world with assets of $2 trillion. Who owns it? Mainly the private investment group The Vanguard Group. Which means Not Us. Its in Private hands. No doubt the top 1% in America. Do they pay fines? Do they suffer losses? No. Do we? Yes. Its not right AND its not fair. The Poor get Poorer The Rich get Richer Everybody Knows. No one is doing anything about it.

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