- Nov 26, 2011
- 123,496
- 53,571
- 2,290
One of the most revered and trusted figures in finance is the London interbank offered rate (LIBOR). This is the amount of interest banks charge when lending to one another for periods ranging from overnight to one year.
The LIBOR is used as the variable in hundreds of trillions of dollars of finanical transactions and derivatives. It is therefore crucial that this be a rock solid, impeccable, and trusted standard, like an atomic clock that is used to set the time of every other clock in the world.
But it appears some bankers have colluded to set the atomic clock ahead by one second to get a slight advantage over their clients. They have fraudulently manipulated LIBOR to squeak out extra money from the derivatives they sell to their clients.
This is why people need to start going to prison. When all you do is fine them lunch money, then fraud is incentivized and it will only get worse and worse to the point where they are now fucking with LIBOR, for chrissakes.
This is organized crime. These are mobsters fixing the race.
As I have tried to point out several times here, the people who are being ripped off by this fraud are...YOU. If you have a retirement fund or money market fund of some kind, you are the client that is being repeatedly ripped off. If you have a mortgage that is fixed to LIBOR, which every non-fixed mortgage on the planet is, then you may have been paying more than you should have been.
The money they are stealing is coming from your pocket. And some people who are willfully blind to Wall Street's thievery are completely okay with you being robbed. That makes them the best kind of sucker. The willing idiot victim who just stands there as his pockets are gone through, saying, "Fraud? What fraud? Whatchu talkin' bout? I no see no fraud!"
UBS Turning Whistleblower in Libor Probe
Just like in organized crime, the first mobster to confess and cooperate with the cops gets the biggest break. And that is what UBS is doing. They are cooperating first to minimize their punishment.
And this is how crime rings are broken up. You break one of the mobsters and he rats out all the others.
It is way past time to use the Racketeering Influenced and Corrupt Organizations (RICO) Act against these criminal enterprises. It is time to start sending these mobsters to prison and start confiscating their illegally gained assets under RICO.
Or...we can just blame negroes for our troubles and call it good.
The LIBOR is used as the variable in hundreds of trillions of dollars of finanical transactions and derivatives. It is therefore crucial that this be a rock solid, impeccable, and trusted standard, like an atomic clock that is used to set the time of every other clock in the world.
But it appears some bankers have colluded to set the atomic clock ahead by one second to get a slight advantage over their clients. They have fraudulently manipulated LIBOR to squeak out extra money from the derivatives they sell to their clients.
This is why people need to start going to prison. When all you do is fine them lunch money, then fraud is incentivized and it will only get worse and worse to the point where they are now fucking with LIBOR, for chrissakes.
This is organized crime. These are mobsters fixing the race.
As I have tried to point out several times here, the people who are being ripped off by this fraud are...YOU. If you have a retirement fund or money market fund of some kind, you are the client that is being repeatedly ripped off. If you have a mortgage that is fixed to LIBOR, which every non-fixed mortgage on the planet is, then you may have been paying more than you should have been.
The money they are stealing is coming from your pocket. And some people who are willfully blind to Wall Street's thievery are completely okay with you being robbed. That makes them the best kind of sucker. The willing idiot victim who just stands there as his pockets are gone through, saying, "Fraud? What fraud? Whatchu talkin' bout? I no see no fraud!"
UBS Turning Whistleblower in Libor Probe
UBS AG’s (UBSN) decision to become first- confessor as regulators probe the alleged manipulation of interest rates will ratchet up the risks for other banks that set the benchmark for $360 trillion of securities worldwide.
The bank is seeking to insulate itself from the biggest possible fines from the investigation by turning itself in to regulators before its competitors to gain leniency, lawyers said. The plan still leaves the Zurich-based lender vulnerable to lawsuits from clients and raises the potential antitrust penalties for its competitors.
“Libor has always been a lie, because it represents what banks would pay for funds rather than what they are actually paying,” said Peter Hahn, a finance professor at London’s Cass Business School and a former managing director at Citigroup. “People who have an incentive to make money from mispriced markets are able to misprice those markets, and that is a serious control problem.”
Just like in organized crime, the first mobster to confess and cooperate with the cops gets the biggest break. And that is what UBS is doing. They are cooperating first to minimize their punishment.
And this is how crime rings are broken up. You break one of the mobsters and he rats out all the others.
By making the first disclosure to regulators, the Zurich- based lender will make it harder for competitors including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) to claim similar protection. UBS’s competitors could face higher penalties for not coming forward earlier, Francis said.
Brian Marchiony, a London-based JPMorgan spokesman, and Jeffrey French, a spokesman for Citigroup in London, declined to comment on the investigations.
The damages, if the probes establish liability, “could be enormous, depending on how they’re defined,” said Peter Henning, a law professor at Wayne State University in Detroit. “It will be a mess evaluating damages, given all the derivatives contracts and swaps tied to these rates. This won’t be resolved anytime soon.”
It is way past time to use the Racketeering Influenced and Corrupt Organizations (RICO) Act against these criminal enterprises. It is time to start sending these mobsters to prison and start confiscating their illegally gained assets under RICO.
Or...we can just blame negroes for our troubles and call it good.
Last edited: