UK Banking facing Judicial enquiry


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Message 1255371 - Posted: 4 Jul 2012, 10:13:46 UTC
Last modified: 4 Jul 2012, 10:20:55 UTC

OK, I understand more fully what it is now, and why historically London is seen as the world financial centre. But if the LIBOR is discredited will the international banking system use another yardstick elsewhere? And if so what would be the backlash on UK banks?

I suspect that the world's banking fraternity would, at any time, know roughly
what the LIBOR rate should be, hence know if it was being set too high or too
low on any given occasion

An interesting snippet from WIKI...
In the 1990s, the yen Libor was influenced by credit problems affecting some of the contributor banks

So it seems "falsely setting the rate is not a new thing then?

.
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Message 1255375 - Posted: 4 Jul 2012, 10:27:22 UTC

I suspect that the world's banking fraternity would, at any time, know roughly what the LIBOR rate should be, hence know if it was being set too high or too low on any given occasion


The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates

Well, in that case assuming that the data from which the LIBOR is derived from is internationally available, any other bank can come to the same conclusion from the same data. If it appears that London has got it too high or too low, then they can choose to ignore it and set their own rates.

In other words why just follow the LIBOR? Wouldn't it make more sense if each major banking country produced their own version of the LIBOR then everyone took an average of those? Although of course that pre-supposes that the other LIBOR equivalents were not being manipulated like ours is supposed to have been done.





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Message 1255377 - Posted: 4 Jul 2012, 10:31:47 UTC
Last modified: 4 Jul 2012, 10:34:00 UTC

All in all, the LIBOR is not a sacrosanct rate. Institutions use it to
set their own rates by, "if they wish". Then they set according to what their
own requirements are, either they set, at it; above it or below it. So had it
not been for this current financial dilemma, the worlds in, then I suspect this
LIBOR scandal would have amounted to nothing more than a "Storm in a tea cup"
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Message 1255386 - Posted: 4 Jul 2012, 10:47:05 UTC

There have been suggestions the BoE's deputy governor and senior Whitehall officials knew rates were manipulated.

If proven that is worrying.

then I suspect this LIBOR scandal would have amounted to nothing more than a "Storm in a tea cup"

You may well be right there.

Well well, looks like my first uneducated take upon it all wasn't so far of the mark after all ....

We may well see more heads roll at major banks before the scandal surrounding Libor is over. But some senior members of the international financial community are increasingly wondering about the future of Libor itself. As one senior international regulator put it to me: "The benchmark is broken. It needs to be fixed. Or perhaps it will just go the way of the dodo. The world has changed."


LIBOR future

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Message 1255428 - Posted: 4 Jul 2012, 14:19:05 UTC - in response to Message 1255375.

I believe each region has their own version. I did look into that ealrier this week but forgooten the names of them. The only one I can remember is TIBOR.

I believe there is a couple more at least, but London has always been the major one for most banks.
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Message 1255433 - Posted: 4 Jul 2012, 14:26:30 UTC

Cameron states that shamed/disgraced bankers to not receive golden handshakes

I'll lay odds-on that before all this is over, some asswipes known as lawyers repute this via points of law.
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Message 1255463 - Posted: 4 Jul 2012, 16:00:28 UTC
Last modified: 4 Jul 2012, 16:08:21 UTC

I believe each region has their own version. I did look into that ealrier this week but forgooten the names of them. The only one I can remember is TIBOR. I believe there is a couple more at least, but London has always been the major one for most banks.

That is interesting, I didn't know that.

Mr Diamond defended the bank's actions to address the problems of rate-rigging when they were first discovered. "As soon as we recognised [the problem] three years ago... we said 'let's get to the bottom of this'", he said.

He said he only found out about the true extent of the rigging this month.

It took him nearly three years to find out the truth? Sorry, that won't wash. His take being "It wasn't my fault I didn't know....". sounds like he has been taking lessons from a certain female ex Newspaper executive.

Nick Clegg, the deputy prime minister, said the public would be “dismayed” if Mr Diamond received a “handsome” final pay-out. The bank has yet to announce a decision on Mr Diamond’s final payment, and any attempt to prevent him receiving his full entitlement could be legally difficult as there is no evidence that he acted inappropriately.

If the man has a legally binding contract that does not state that he foregoes money, depending upon how he leaves the bank, that could be upheld in law. But like Fred Goodwin before him, he will pay the price if he does.

At the moment he is fighting his corner, we will see what transpires.

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Message 1255598 - Posted: 4 Jul 2012, 19:13:13 UTC

http://www.bbc.co.uk/news/business-18713990
Well, when you listen to Bob Diamond then he certainly does sound a very
genuine man. He certainly doesn't come over as a bad-guy...all very interesting.

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Message 1255604 - Posted: 4 Jul 2012, 19:21:52 UTC - in response to Message 1255598.
Last modified: 4 Jul 2012, 19:24:46 UTC

Then this is definitely going to put "The Cat amongst the pidgeons"....

Diamond ready to fight for £22million payout


Edit: In the link provided, is another *.*bor - Euribor.
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Message 1255621 - Posted: 4 Jul 2012, 20:14:46 UTC
Last modified: 4 Jul 2012, 20:15:38 UTC

This really is better than any Jim Henson creation....

The whole country in a double dip recession, major issues worldwide which will impact the UK & rather than work together to start the ball rolling in resolving those issues, we get....

Schoolboys in charge
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Message 1255626 - Posted: 4 Jul 2012, 20:28:54 UTC

Nice Chart

Will these "Shadowy" whitehall figures fall on their swords a la Bob Diamond, if they're found to be implicated in this matter?

Personally, I very much doubt it as they'll more than likely be "Senior" civil servants & they won't allow anybody to disrupt their snouts in the trough.
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Message 1255674 - Posted: 4 Jul 2012, 22:48:34 UTC

Andrew Tyrie is nobody's fool & if he feels that something is amiss, he'll go after it as fast as a bullett leaves a barrel....

Diamond's testimony "implausible"

Think this is going to widen into a debacle as bad as the Eurozone crisis, if not worse.
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Message 1255679 - Posted: 4 Jul 2012, 23:08:28 UTC

Perhaps if you would stop making multiple posts all the time, someone else could get a word in edgeways now and again. I really don't know why you feel the need to do this.

To label the Prime Minister and the Leader of the opposition as "Schoolboys" is just silly, and nothing more than sitting on the sidelines throwing bread rolls. It is the job of Her Majesties Opposition to challenge the Government upon their policies, and their response in dealing with major issues of the day. The Prime Minister will respond on behalf of the Government defending their approach. MP's can then discuss matters further, by asking supplementary questions.

That is what they do, and what they have done. The fact that you don't like what they say or agree with it, is no good reason for name calling.

@ Nick -

Well, when you listen to Bob Diamond then he certainly does sound a very
genuine man. He certainly doesn't come over as a bad-guy...all very interesting.

So far he is certainly giving a robust defence of his position. As you say, interesting.

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Message 1255685 - Posted: 4 Jul 2012, 23:25:59 UTC - in response to Message 1255674.

Andrew Tyrie is nobody's fool & if he feels that something is amiss, he'll go after it as fast as a bullett leaves a barrel....

Diamond's testimony "implausible"

Think this is going to widen into a debacle as bad as the Eurozone crisis, if not worse.

Once we get to hear a few more testimonies then we might get a better idea as
to who's telling the truth hence giving us the real story.


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Message 1255689 - Posted: 4 Jul 2012, 23:32:55 UTC - in response to Message 1255679.
Last modified: 4 Jul 2012, 23:47:49 UTC

Perhaps if you would stop making multiple posts all the time, someone else could get a word in edgeways now and again. I really don't know why you feel the need to do this.



For somebody that starts threads & then do not contribute to them except remind people that they're going off topic, that comment is laughable.

Secondly, I do not post inane comments - I provide links to valid reports accompanied by my sarcastic/humourous/serious remarks depending on the link concerned.

Thirdly, each post is accompanied by a serious link with regards to the thread topic, there have been numerous occasions where you totally ignored the link & it's seriousness & just condemned my comments.

Fourthly, you seem to be defending the establisment, with very little comments on the negative side, always stating that not all MP's are as "useless muppets" as I so famously state. I know that is true, bur are those MP's front facing & making continuous statements which are changed within hours/days weeks because matters are not going their way? No they don't, unfortunately, as the Banking/Euro/Media scandals are showing, what is there to defend?

It's all right for "established" comedians/news readers etc to pass these comments/remarks but I'm not?

Thanks again for confiming that it's your way or the highway. So freedom of speech needs to be forbidden in "your" version of the establisment then?

Edited for spelling mistakes.

Edit 2: -

That is what they do, and what they have done. The fact that you don't like what they say or agree with it, is no good reason for name calling.


But she won't be a British Maggie will she? Thatcher if she were in power today would give Germany & Europe short thrift, If the Mekon turns out to be as good, woe betide us!


I have a white kettle, what colour is yours?
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Message 1255853 - Posted: 5 Jul 2012, 11:00:23 UTC

In order to avoid boring readers of this thread, and going off topic regarding the current subject of the UK banking Scandal, I have started another thread.

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Message 1255872 - Posted: 5 Jul 2012, 12:46:00 UTC - in response to Message 1255853.

In order to avoid boring readers of this thread, and going off topic regarding the current subject of the UK banking Scandal, I have started another thread.



and failing to answer the questions in the post above, exactly as I expected.thanks.
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Message 1255882 - Posted: 5 Jul 2012, 13:17:24 UTC

More QE

A comment made on this report says it all...

"stop bailing out the banks.
If someone has to be bailed out it should be the hardworking working man/woman! NOT the balance sheets of failed banks!"

5 more points

The report at the end of the inquiry is going to make interesting reading.
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Message 1255894 - Posted: 5 Jul 2012, 13:53:33 UTC - in response to Message 1255882.

"stop bailing out the banks.
If someone has to be bailed out it should be the hardworking working man/woman! NOT the balance sheets of failed banks!"

Yes, Let them fail. It isn't like there is deposit insurance or anything like that. You wouldn't have to bail them out that way at all. Yes, Let them fail.

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Message 1255903 - Posted: 5 Jul 2012, 15:07:26 UTC

Sorry Gary, I can't agree with that. There are many UK Pension Funds that have invested in Banks. The pensions of the man in the street will suffer if that happens.

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