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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The Illusion of choice

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RSA Animate – Choice from The RSA on Vimeo.

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Why do we let  them get away with it? God knows. The big banks run the world and when they get into trouble who bails them out? We do.  Why? God knows. I was reading a friends poems :

On the train to the city I found I was writing a poem as we all stood one on the other, trying not to notice the morning grey of our clothes; belts drawn tight over the swelling bellies of morning men.
At Martin Place I heard the clack of unsuitable shoes racing up the escalator. A moving line of tired sad people going up to face the day.
Do they want to hide from this day and bathe themselves in artificial light as they wait for the end?
I say choose well how you spend your days. Walk outside and leave the darkness. Wake with the sun and breathe real air. Choose well and wisely, for no one may tell you how to live.

Great stuff yet she spent nearly  a year with an ignoramus. Why? God knows. We call ourselves rational beings, why when we do things clearly detrimental to our own well being. Why? God knows. BUT EVERYBODY KNOWS:>

Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows that the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
Thats how it goes
Everybody knows

Everybody knows that the boat is leaking
Everybody knows that the captain lied
Everybody got this broken feeling
Like their father or their dog just died

Everybody talking to their pockets
Everybody wants a box of chocolates
And a long stem rose
Everybody knows

Everybody knows that you love me baby
Everybody knows that you really do
Everybody knows that youve been faithful
Ah give or take a night or two
Everybody knows youve been discreet
But there were so many people you just had to meet
Without your clothes
And everybody knows

Everybody knows, everybody knows
Thats how it goes
Everybody knows

Everybody knows, everybody knows
Thats how it goes
Everybody knows

And everybody knows that it’s now or never
Everybody knows that it’s me or you
And everybody knows that you live forever
Ah when youve done a line or two
Everybody knows the deal is rotten
Old black Joe’s still pickin cotton
For your ribbons and bows
And everybody knows

And everybody knows that the plague is coming
Everybody knows that it’s moving fast
Everybody knows that the naked man and woman
Are just a shining artifact of the past
Everybody knows the scene is dead
But theres gonna be a meter on your bed
That will disclose
What everybody knows

And everybody knows that you’re in trouble
Everybody knows what youve been through
From the bloody cross on top of Calvary
To the beach of Malibu
Everybody knows it’s coming apart
Take one last look at this sacred heart
Before it blows
And everybody knows

Everybody knows, everybody knows
Thats how it goes
Everybody knows

Oh everybody knows, everybody knows
Thats how it goes
Everybody knows

Everybody knows

So Everybody knows why do things not change? God knows. Don’t we have free will? Don’t we have freedom of choice? Why don’t we act? God knows.

Therefore to answer these questions I have set up a site :  http://Godknows.info to help

 

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