3rd July 2012 02:20
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Barclays LIBOR Market Manipulation Fraud
Barclays LIBOR Market Manipulation Fraud To Boost Profits and Mask Insolvency, RBS, HSBC and Lloyds to Follow
The FSA has belatedly acted on the blatant and obvious to all market participants manipulation of the LIBOR reference rates for various markets including interest rate derivatives. Most market participants had concluded that the LIBOR rate as published by the BBA cannot be accurate and to on occasion an extreme extent at several points during the past 5 years of the financial crisis. The FSA action that amounts to a £290million fine is of little consequences to Barclays because the Bank of England in collusion with the UK Treasury have been busy stuffing every orifice of all of the banks with free cash under the constant threat that if tax payers did not provide unlimited cover for liabilities then the banks would trigger Financial Armageddon which ironically did not stop RBS from exploding last week, freezing millions of account holders in what amounts to a 2 week bank holiday.
What is LIBOR and Why Barclays, Banks, and Central Banks Manipulate it.
The London Interbank Offered rate (LIBOR) is the benchmark reference for rates banks charge one another for borrowing funds over various durations ranging from overnight to 2 years that directly has an impact on the rates that banks charge it's customers as most of the monies loaned out by the major banks are borrowed from other banks, insurers and investors, which is why the freeze in the interbank market as a consequence of bank contagion risks prompted global central banks to take extreme measures to force liquidity into the banking system by various means such as direct loans to banks and QE.
That is the basic picture that the mainstream press is aware of, the truth is what the Government fears you knowing, and that truth is that the banks have increasingly leveraged themselves up on interest rate bets over the past decade on the off exchange derivatives market based on LIBOR and other similar benchmark rates, therefore a small change in LIBOR can have a huge impact on derivatives contracts. We are not talking about billions, or hundreds of billions, or even trillions, we are talking about HUNDREDS OF TRILLIONS of exposure, more than enough to trigger a collapse of the global financial system several times over.
LIBOR Manipulation is NOT News
The mainstream press have been busy during the past 24 hours writing much commentary on the Barclays and other banks manipulation of the LIBOR rate, but as I have already mentioned this was obvious to most market participants and something that I have written about aspects of the manipulated LIBOR interest rates market for several years as signs of market manipulation date back to BEFORE Lehman's went bust in September 2008, the reasons for which I will explain next -
LIBOR Manipulation Only HALF the Story is Being Reported
Virtually all of the present mainstream press commentary is centred around the fact that Barclays somehow made huge profits on the blatant attempts to manipulate the banks reported LIBOR rates lower. However this is less than HALF of the actual story, the fact is that the prime reason why senior bank staff jumped onboard the LIBOR market manipulation band wagon several years ago was to give the illusion to the market of solvency during credit crisis extremes when the LIBOR market would freeze, when the reality was that Barclays along with all of the major banks were Insolvent, bankrupt, having made and lost huge over leveraged sums that were many times the amount of capital the banks had hence the banks lied, lied about virtually everything including LIBOR to prevent market panic and a Lehman's style collapse. Off course to prevent actual insolvency required huge amounts of capital injections, loans and other extreme measures such as QE free money to prevent bankruptcy which the politicians who are highly critical today have been more than culpable in offloading onto the backs of tax payers starting in September 2007 with the Northern Rock bailout.
If the LIBOR rate manipulation story is followed to its logical conclusion then it will eventually be found out that the banks received a nod and a wink from the Bank of England to under report their LIBOR rates as an panic measure (one amongst many) to avert financial armageddon and promote financial stability, given that it has taken this long for Barclays culpability to emerge then the Bank of England and Governments role in market manipulation of interest rates won't be being reported on in the mainstream press anytime soon, and it should not be forgotten that Quantitative Easing (QE) of £325 billion to date has been for the purpose of manipulating market interest rates lower across the yield curve, all the way from short LIBOR right through to the long dated Government Bonds. This is a FACT, the Bank of England has manipulated the market interest rates lower between banks and for government bonds but not for retail customers.
British Bankers Association Evading Responsibility for LIBOR
The BBA is responsible for compiling and reporting the daily LIBOR rates, and thus has a better understanding of the market than most market participants, especially at times of serious deviation from the the actual rates banks were offering to counter parties. Instead of owning upto responsibility, representatives of the BBA have been busy all day offloading responsibility onto others with comments that the BBA had out sourced the process of compiling rates. This illustrates a banking sector that acts outside the law and in totality amounts to nothing more than an cancerous growth on the backs of ordinary tax payers who continue to be held liable and pay for the continuing crimes of bankster's.
However it is not surprising that the BBA is trying hard to wriggle out of responsibility, for there allegedly exists evidence that it knew precisely what was going on but went ahead any way, year after year, reporting misleading information to potential investors on the risks posed by bank offered debt products, which lawyers all across the globe will be busy analysing in terms of damages.
Similarly the Barclays website asks customers to contact the bank about fraud, need not worry for they WILL be being contacted for recompense for telephone number amounts of damages in the near future, the bills for which will ultimately be passed to the tax payers of Britain.
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3rd July 2012 03:38
Link to Post #2