My thwarted attempt to tell of Libor shenanigans

FINANCIAL TIMES

This is a good, short article we found behind the Financial Times subscription wall. Google has cached the article which we excerpt below, and which emphasizes that the LIBOR manipulation has been going on for decades. The important point to take away from this is that top executives of financial firms (Bob Diamond, Mervyn King), as well as top financial regulators (Timothy Geithner), are probably lying through their teeth when they claim they first learned about the manipulation this year (Diamond, King) or a few years ago (Geithner). Read the full article here—Ed

“Simply put, then, it seems the misreporting of Libor rates may have been common practice since at least 1991. Although the difference between the reported rate and the actual rate might seem small, the total amount of money involved is material, given that Libor rates affect contracts worth hundreds of trillions. Also important is what such misreporting says about the culture.

[…]

One of the investigations is being undertaken by the House of Commons Treasury committee. I telephoned the committee on July 3 and spoke with a committee specialist. I told the specialist about the foregoing and said that I was willing to testify under oath. The specialist seemed extremely interested. They said they were to have a meeting about the Libor scandal and would call me back afterwards. I did not hear back, however, so I phoned to ask what was happening. My testimony was not wanted, the specialist told me, because it “contradicts the narrative”.”

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