Lowballing

After all the unravelling of the Libor scandal which involved banks fraudulently (shock!) manipulating the interbank Libor lending rate for their own financial gain (double shock!), we stand at a really awkward place right now.

 

Firstly, how can it be that fraud takes place at an unprecedented level and on a scale that none of us will ever really understand……yet nobody has ever been convicted of doing wrong and nobody is in jail. Financial lying is a crime surely? Half of London should be behind bars. Just a thought.

 

Secondly, (more importantly) the UK’s financial regulator not only didn’t stop the Libor problem from happening (shock!) but actually documented that it was happening but took no action (double shock!).

 

A report has uncovered that there were 74 FSA internal communications between 2007 – 2009 that indicated or made reference to ‘Libor lowballing’ taking place. 

 

So which is worse? Committing the act of fraud or knowing it is happening, being responsible for stopping it but then turning a blind eye?

 

Perhaps more scandalous is the FSA response to this report:

 

“There were ‘important areas where the FSA should have performed better”. No kidding!!!!

 

“There are important lessons to be learnt about effective handling of information”. Well hurry up and learn them because 6 years have passed and you’re just plain useless still.

 

Why oh why is nobody held accountable for this? 

 

Disillusioning