Think about the LIBOR issue for a moment.
I believe we all know or strongly suspect that Barclays were not alone. That there is a strong likelihood that other major banks, such as RBS and Lloyds were also manipulating their LIBOR data submissions.
So let's posit that these two were.
Would it be in the public interest to issue fines against them? Given the level of taxpayer ownership, the bulk of any fines would be tantamount to the taxpayer transferring money from one trouser pocket to another! Of course on the way though, some or much would be lost due to fees from our noble (?) legal brethren!
Indeed, to go further, since publishing such fines and censure then leads to share price falls, is there maybe a case for doing nothing, in the public interest, at the Corporate level? Of course seeing share price activity in recent days, maybe the negative implications have already been 'priced in'?
I don't suggest that the authorities let the individuals concerned, get away with any criminal activity, quite the contrary, I would like to see them imprisoned - not fined, imprisoned - though with the Serious Fraud Office (mis) handling the case, the likelihood has to be low!
Any thoughts on this?
Incidentally, listening to Bob Diamond's light toasting in front of the Treasury Select Committee, the other day (simply appalling service on BBC TV World News, with constant 'talking head' interruptions to give us statements of the obvious!),two things came to the fore, for me.
One, Barclays seemed to be always on the high side and it was suggested that they were advised/told or somehow or other encouraged to lower their rates.
Secondly, the method of deciding LIBOR seems to be to take the submissions from the 17 banks, and then eliminate the 3-4 lowest and 3-4 highest and then find the rate amongst the middle.
So in both cases the actions of Barclays (and it's traders) , while possibly criminal (mis-representation and conspiracy etc) has either had no effect or any effect was to reduce the potential cost of borrowing for anyone. Have I got that right?
Oh! and still no resignations from Labour or apologies for their complicity in this issue. This all happened on their watch - loose or invisible regulatory institutions, nods and winks approach to economic (mis) management and Gordon - no more boom and bust - Brown telling us all how he saved the world's financial system!
I believe we all know or strongly suspect that Barclays were not alone. That there is a strong likelihood that other major banks, such as RBS and Lloyds were also manipulating their LIBOR data submissions.
So let's posit that these two were.
Would it be in the public interest to issue fines against them? Given the level of taxpayer ownership, the bulk of any fines would be tantamount to the taxpayer transferring money from one trouser pocket to another! Of course on the way though, some or much would be lost due to fees from our noble (?) legal brethren!
Indeed, to go further, since publishing such fines and censure then leads to share price falls, is there maybe a case for doing nothing, in the public interest, at the Corporate level? Of course seeing share price activity in recent days, maybe the negative implications have already been 'priced in'?
I don't suggest that the authorities let the individuals concerned, get away with any criminal activity, quite the contrary, I would like to see them imprisoned - not fined, imprisoned - though with the Serious Fraud Office (mis) handling the case, the likelihood has to be low!
Any thoughts on this?
Incidentally, listening to Bob Diamond's light toasting in front of the Treasury Select Committee, the other day (simply appalling service on BBC TV World News, with constant 'talking head' interruptions to give us statements of the obvious!),two things came to the fore, for me.
One, Barclays seemed to be always on the high side and it was suggested that they were advised/told or somehow or other encouraged to lower their rates.
Secondly, the method of deciding LIBOR seems to be to take the submissions from the 17 banks, and then eliminate the 3-4 lowest and 3-4 highest and then find the rate amongst the middle.
So in both cases the actions of Barclays (and it's traders) , while possibly criminal (mis-representation and conspiracy etc) has either had no effect or any effect was to reduce the potential cost of borrowing for anyone. Have I got that right?
Oh! and still no resignations from Labour or apologies for their complicity in this issue. This all happened on their watch - loose or invisible regulatory institutions, nods and winks approach to economic (mis) management and Gordon - no more boom and bust - Brown telling us all how he saved the world's financial system!
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