UK banks face new scandal; Barclays Fined For Market Fixing, UK Government Implicated

[Exarch]

As if private merchant banks hadn't done enough already, and in the wake of JP Morgan's boss Jamie Dimon's testament to Congress not two weeks ago, the situation in the UK proved to be no better. Barclays has been fined a measly half a billion for fixing interest rates. Think about it, a mere $453mln when the crime probably produced fruit worth as much as billions. If i were a gambling man, i'd say that's a good deal.

(Reuters) - Britain will expose on Friday a second scandal involving the country's banks in as many days, as Barclays boss Bob Diamond clings to his job after regulators slapped a record fine on the lender for rigging interest rates.

The Financial Services Authority will announce it has found evidence that banks mis-sold products to protect small businesses against a rise in interest rates, a person familiar with the matter said.

With public, political and business outrage at bankers' behavior deepening, the industry is likely to draw compensation claims that could cost it billions of pounds, legal experts say.

A string of mis-selling cases has rocked the financial services industry for over two decades and banks are already likely to pay upwards of 9 billion pounds ($14 billion) in compensation for mis-selling loan insurance.

While a number of banks are likely to be drawn into the latest mis-selling scandal, Diamond has found himself first in the firing line after U.S. and British authorities fined Barclays $450 million on Wednesday for manipulating the London interbank offer rate (Libor).

Prime Minister David Cameron said Diamond - who was running the investment banking arm Barclays Capital when the rigging occurred in 2005-2009 - and other bosses had some "big questions to answer". Britain also called in the fraud squad to investigate possible crimes.

"Politicians have already been baying for blood and calling for the head of Bob Diamond, especially as he was in charge at BarCap at the time," said Stephen Peak, manager of the Henderson UK Alpha and European Absolute Return funds and a shareholder in the bank.

"We feel that the Barclays board will instinctively wish to resist this, as Diamond is clearly the architect and leading light of Barclays, but feel that the pressure may be too great."

Diamond, whose fat bonuses following the financial crash of 2008-09 drew widespread criticism, won few political friends last year when he told a parliamentary committee that it was time for bankers to stop apologizing.

Shares in Barclays slumped 15 percent on Thursday on concern that Barclays will face lawsuits from U.S. investors and that Diamond may go.

Diamond admitted in an open letter to Britain's Treasury Select Committee on Thursday that the bank engaged in "inappropriate behavior" to lower submissions.

In his letter, Diamond said the investigation highlighted two types of manipulation used by the bank, and he would happily attend a Treasury Committee meeting on the issue.

The Libor scandal, which disclosed e-mails in which bankers appeared to promise bottles of champagne to each other for help in setting the rates, has fuelled the anger with the financial industry.

Authorities in Europe, North America and Japan are investigating many banks which help to set Libor, and others are expected also to be heavily fined. Shares in RBS and Lloyds also fell sharply on Thursday.

Thomson Reuters Corp is the British Bankers' Association's official agent for the daily calculation and publishing of Libor. The company said it continues to support the BBA in calculating and distributing Libor rates.

(Reporting by Steve Slater, Huw Jones and Sinead Cruise; Editing by David Stamp and Richard Pullin)

Source:http://www.reuters.com/article/2012/...85S04820120629

Finally, the mouthpiece of the emir of Qatar, had this to say in high definition:

[Condottiere 40K]

To prevent the revolving door syndrome, banksters need to get a felony conviction and permanent ban from participating in the industry.

[Exarch]

indeed, think about it right; doctors face prison or massive fines if they up; ditto with lawyers and other professionals, why should bankers be any different?

[Condottiere 40K]

Maybe we should institute malpractice for financial institutions.

[sabaku_no_gaara]

I wonder if those responsible will see jailtime? probably not...

[selder]

The problem is its the entire system not just a few bankers.

"We're clean, but we're dirty clean, rather than clean-clean," he said.

"No-one's clean-clean"

[magpie]

Don't worry, B.Diamond is making up a list of those in his place of work who will make the supreme sacrifice job wise.

Jamie Dimond of J.P.Morgan has sweetened his retired CEO of the London investment Whale debacle. with a $58 million retirement package.

The politicians are spitting mad over Barclay and other British banks as once more they have been shown up as fools by their master,s.

This Libor scandal has been known about for some time. The U.S. unearthed it some time back when Swiss bank U.B.S. blew the whistle to them to avoid major penalties on other issue,s.?

[Thorn777]

Now why dont people start using their heads and wonder why legal outcomes as bizarre like this one are structural?

Hey maybe get a hold of the idea we live in a kleptocracy, where up is down, and right is wrong, and this goes all troughout the system we live in.

Could it possibly be? That there is conspiracies? Corruption all over our western pampered asses, watching that show on the telly tonight or playing the latest video game, instead of protesting in the street like some stinking jealous hippies before it gets worse, like its been going the last 30 years continually?

Its not like it cant get worse. While abandoning that untrendy Third Way, the 3rd world is heading our way...

[Humble Warrior]

"We know it`s illegal and if we get caught out we`ll be fined, but by then we`ll have made so much money it won`t matter."

I`ve seen this company trick so many times. They need to be punished so hard in the future that the crime won`t be worth the time.

[Heinz Guderian]

The only reason these people are being accosted and beaten in the street is because the majority of the public doesnt really know what they did and how bad it was. Its pretty bad

[Shaun]

Another day, another banking scandal.

Be interesting to see what'd happen to the industry if it was to stop being publicly funded...

[Celsius]

Never thought I would see Banks being the new "Win nearly all the time" Casinos.

[King Gambrinus]

What's the most sickening is that the tax payer pays their wages and the government is far too corrupt to do anything about it.


Cameron is in for an almighty hounding in the next election if he keeps this circus up with Osborne. The only thing that can possibly stop the Tories being minced is the hopeless Ed Miliband and the implosion of the Lib Dems.

[Exarch]

keiser's analysis:

[Humble Warrior]

keiser's analysis:

This guy`s pretty cool, although I suspect some would call him a communist.

[mrmouth]

This guy`s pretty cool, although I suspect some would call him a conspiracist.

fixed

[Glista]

fixed

Even a broken clock is right twice a day.

Now I go steal me some monez

[Condottiere 40K]

To these people, Harris' public defender, himself a government employee, may become a new hero. In his sentencing memo, Boston federal defender Charles P. McGinty wrote:

It is perhaps appropriate to comment on the disparity of treatment of Harris in the context of DOJ’s [the Department of Justice's] disinclination to use criminal process against more significant targets. In recent years, the Department of Justice has resolved investigations of dozens of Fortune 500 companies via deferred prosecution agreements and non-prosecution agreements, where, instead of facing criminal charges, companies find an amicable way of avoiding this consequence. Examples abound...
Except for corporate titans who become notorious (Kenneth Lay) or behave like Nero (Dennis Koslowski at Tyco), only minor corporate actors get prosecuted. Large corporate actors pay fines despite the gravity of the offenses in matters involving healthcare fraud, military contract fraud, bribery of foreign governments, money laundering, tax evasion and violating trade sanctions.

[YukonTrooper]

I love how at this point the British Banker's Association, chaired by members from banks who are accused of libor fraud, are the ones that are supposed to "get to the bottom of things."

[badwolf66]

Not surprising really When Banks, Corparations and The Ruling Elite are controlling the Earth from behind the scenes.