this is what low levels of regulations gets you

Discussion in 'Current Events' started by Truthmatters, Dec 13, 2012.

  1. Truthmatters
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    http://www.bloomberg.com/news/2012-...-police-nearby-shows-flaw-of-light-touch.html


    Light Touch

    The scandal demonstrates the failure of London’s two-decade experiment with light-touch supervision, which helped make the British capital the biggest trading hub in the world. In his 10 years as Chancellor of the Exchequer, Gordon Brown championed this approach, hailing a “golden age” for the City of London in a June 2007 speech. Even after the FSA pledged to toughen its rules following the 2008 financial crisis, supervisors failed to act on warnings that the benchmark was being manipulated.

    Regulators have known since at least August 2007 that banks were using artificially low Libor submissions to appear healthier than they were. That month, a Barclays employee in London e-mailed the Federal Reserve Bank of New York, questioning the numbers that other banks were inputting, according to transcripts published by the New York Fed.

    Nine months later, Tim Bond, then head of asset allocation at Barclays’s investment bank, publicly described the Libor figures as “divorced from reality,” saying in a Bloomberg Television interview that firms were routinely misstating their borrowing costs to avoid the perception they were facing stress.

    The New York Fed and the Bank of England say they didn’t act because they had no responsibility for oversight of Libor. That fell to the British Bankers’ Association, the industry lobbying group that created the rate and largely ignored recommendations from central bankers after 2008 to change the way the benchmark is computed. Regulators also were preoccupied with the biggest financial crisis since the Great Depression, and forcing banks to be honest about their Libor submissions might have revealed they were paying penalty rates to borrow.
     
    Last edited: Dec 13, 2012
  2. saveliberty
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    saveliberty Diamond Member

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    Implication being? Obama has been in office four years. Its his fault at this point.
     
  3. Truthmatters
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    oh my some little partisan fool didnt read what was given
     
  4. Truthmatters
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    This is the Libor scandal.
     
  5. saveliberty
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    saveliberty Diamond Member

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    Obama's adminstration is responsible for anything that effects the US at this point.
     
  6. Truthmatters
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    your insane
     
  7. Truthmatters
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    This was a failure to propoerly regulate this industry.


    When you just trust any industry you get failure of the system.

    History proves this over and over and over.
     
  8. Truthmatters
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    It is TIME for republicans and libertarians to admitt their core idea of deregulation being GOOD for the economy has been pummeled by reality.


    Stop using failed ideas to try and attract voters.

    They found out your ideas are historically failed ideas and you will NEVER win another election with them.
     
  9. Rat in the Hat
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    Rat in the Hat Gold Member

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    You seem to have a lot of concern for the British Banker's Association's lack of regulations.


    Why don't you move to England and straighten them out?

    Or at least find BritishMessageBoard and post about it there.
     
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  10. Truthmatters
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    You also dont understand what Libor is huh?
     

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