Cognitive Dissonance

"Democracy! Bah! When I hear that I reach for my feather boa!" - Allen Ginsberg

89 notes

The LIBOR scandal: The rotten heart of finance | The Economist

thebardofavon:

THE most memorable incidents in earth-changing events are sometimes the most banal. In the rapidly spreading scandal of LIBOR (the London inter-bank offered rate) it is the very everydayness with which bank traders set about manipulating the most important figure in finance. They joked, or offered small favours. “Coffees will be coming your way,” promised one trader in exchange for a fiddled number. “Dude. I owe you big time!… I’m opening a bottle of Bollinger,” wrote another. One trader posted diary notes to himself so that he wouldn’t forget to fiddle the numbers the next week. “Ask for High 6M Fix,” he entered in his calendar, as he might have put “Buy milk”.

What may still seem to many to be a parochial affair involving Barclays, a 300-year-old British bank, rigging an obscure number, is beginning to assume global significance. The number that the traders were toying with determines the prices that people and corporations around the world pay for loans or receive for their savings. It is used as a benchmark to set payments on about $800 trillion-worth of financial instruments, ranging from complex interest-rate derivatives to simple mortgages. The number determines the global flow of billions of dollars each year. Yet it turns out to have been flawed.

Over the past week damning evidence has emerged, in documents detailing a settlement between Barclays and regulators in America and Britain, that employees at the bank and at several other unnamed banks tried to rig the number time and again over a period of at least five years. And worse is likely to emerge. Investigations by regulators in several countries, including Canada, America, Japan, the EU, Switzerland and Britain, are looking into allegations that LIBOR and similar rates were rigged by large numbers of banks.

Yeah ever since I read about this my disgust for bankers has multiplied exponentially. 

A must read ^^

(Source: kenyatta)

Filed under news banking banks LIBOR interest rates economics collusion the economist

  1. cthulhulovesewe reblogged this from satanic-capitalist
  2. notoriousjoev reblogged this from satanic-capitalist
  3. satanic-capitalist reblogged this from kenyatta
  4. passionate-flurry reblogged this from kenyatta
  5. smileyreality reblogged this from kenyatta
  6. awesomeocelot reblogged this from kenyatta
  7. lisafirmani reblogged this from kenyatta
  8. leftistshuffle reblogged this from silas216
  9. shewhodancesunderthemoon reblogged this from cognitivedissonance
  10. wozziebear reblogged this from cognitivedissonance
  11. purehemp reblogged this from gh2u
  12. artdork66 reblogged this from mudwerks
  13. gh2u reblogged this from mudwerks
  14. mudwerks reblogged this from ca-thar-si-s
  15. thewallstreetexecutive reblogged this from kenyatta
  16. bartnj reblogged this from kenyatta
  17. ca-thar-si-s reblogged this from moorewr and added:
    Damn, I’ve got some reading to catch up on from this weekend.
  18. daysgoneby77 reblogged this from cognitivedissonance
  19. art-code-russia reblogged this from silas216
  20. other-stuff reblogged this from silas216
  21. silas216 reblogged this from cognitivedissonance
  22. vikingforkliftsafari reblogged this from moorewr
  23. thisisarecountry reblogged this from cognitivedissonance
  24. tr0tskitty reblogged this from cognitivedissonance
  25. therampsidian reblogged this from cognitivedissonance and added:
    When the economist is so vocally expressing the mistakes of the system, you know there’s a problem. Fingers crossed for...