The Libor scandal is huge, much larger than previous scandals, as it is at the central of the financial system, involves multiple big banks and apparently at least one government too.
Local governments got screwed due to Libor manipulation
Greg Smith wrote that at Goldman Sachs, the gullible bureaucrats on the other side of these deals were called "muppets."
There really seem to be no depths to which Goldman will not sink to insult their customers while screwing them. Our investment banks are parasites, taking much, giving nothing in return.
Ex rogue trader says Barclays traders should go to prison and that the supposed big fine is just the cost of doing business. Plus, many more banks were involved too including here in the States, no doubt.
Americablog has a useful explanation about what Libor is.
Simply put, Libor is an interest rate based on self-reported interest rates from big banks. Zillions of other rates and deal are pegged to Libor, including mortgages. So, if you can rig Libor, many other rates, swaps, and derivatives can be gamed too.
Whitehall implicated in Libor scandal. Emphasis added
On July 3, in preparation for Mr. Diamond's July 4 appearance before Parliament, Barclays released documents on its website that implicate the Bank of England, the Financial Services Authority (FSA), and even Whitehall in the scandal.
It is almost impossible to overstate the seriousness of these events or the potential they have to destabilize the financial system.
rest at
http://polizeros.com/2012/07/05/libor-scandal-grows-implicates-other-banks-british-government/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+PoliticsInTheZeros+%28Politics+in+the+Zeros%29&utm_content=Google+Reader
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