Saturday, June 30, 2012

Fixing LIBOR - Surely a crime?

I can't work out if the fixing of LIBOR by Barclays and others has had any real impact on the actual cost of borrowing at the retail level, for you and I.  I suspect little or no real effect but no doubt the 'ambulance chasers' sorry, class action lawyers, will get to the bottom of that (and claim their large fees)

What does bother me though, is the lack of actual police action. 

It seems that the 'regulatory authorities' (that wasn't a joke, I will try to slip one in later) on both sides of the Atlantic, have managed to find sufficient evidence to force Barclays to cough-up $450 million in fines.  I can't imagine that this was done unless there was compelling evidence.  No bank willingly pays that sort of money unless they are truly in a corner.

So....

Why no criminal charges?

Surely fraud has been committed (but please, please, let's not get the incompetent SFO involved, please).  Also a conspiracy to defraud?  Assuming someone lost out on this fixing, that would suggest theft as well.

I don't count myself among those bank bashers or people that negatively harp on about banker's bonuses but for the sake of our society and the only known effectivesystem of business (the capitalist one) none of us can allow such behaviour to go unpunished. 

The criminal people carrying out these actions are the same people who would be screaming from the roof-top that last summer's rioters  or welfare cheats should be locked up but they really think the law doesn't apply to them.  Where are the Bank of England and other financial institution leaders in all of this?  Why are they not clamouring for a house cleaning and criminal charges?  Surely they must realise that failure to speak out, says volumes about where there moral compass is set.    Same applies to politicians. 

I am not talking about any kind of public inquiry, we need criminal charges to be brought - dawn raids, doors smashed in, these criminals 'banged-up' with no bail.  Such crooks need to be embarrassed and shamed in front of family and friends.  By all means alert the press - local and national - for maximum effect!

Right now, the clear message, as far as financial fraud is concerned is - do it and don't get caught, but if you do get caught, you can use part of your criminally achieved gains to make the problem go away and, just for good measure, we will get the shareholders of the company (who might actually be taxpayer-owners) to foot the bill.  Doing time?  Sorry that is so not for us, it's not as if we are common thieves!

Oh!  Bob Diamond - of course he should go.  As should the chairman of Barclays.  How can there be any question.  Same should apply for any other banks that are found to have been partaking.  Those activist shareholders and financial institutions MUST demand this on behalf of the pension fund investors that they represent.  To do otherwise gives a nod and a wink to the criminals that operate, seemingly with impunity.  I don't suggest that Diamond committed any criminal act but such acts seem to have taken place while he was in charge.  Anyone with a shred of honour or integrity would have already resigned. 

Just for good measure and as a boost to the economy - pass a law, with retro-active effect, such that these fines, say any imposed since the start of this fiscal year, should not be allowed to be offset against corporate taxes, in fat go one better and dis-allow such fines by a factor of 2 - so a fine of £290 million means that Barclays costs are raised by a further £290 million and its taxable profits by a further £580 million.

Since it seems the police aren't acting, it is up to you to do so:

  • If you are a shareholder in Barclays, send a letter to the board and demand Diamond's resignation and that of the chairman.
  • Otherwise write to your pension company and demand they take action. 
  • Don't forget to also write to your MP.  This isn't a party political issue.  This is about criminality and decency.  No party has the monopoly on this!
  • Write to your local council and ask them to divest from Barclays until appropriate action is taken.



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