Wednesday, 3 May 2017

Lowballing - Part III




I wrote about this in 2013 and then again in 2014……yet there are new developments.
 
 
 
Lowballing was essentially another banking scandal involving banks fraudulently (shock!) manipulating the interbank Libor lending rate for their own financial gain. This wasn’t policed properly by the regulator, an opportunity was found by the banks to make money illegally and (quelle surprise) money was made. To date, UK banks have been fined more than £6 billion for the fraudulent manipulation and custodial sentences have been applied to three bank officials.
 
3 years on and there is a further twist…… the Bank of England is now implicated.
 
Evidence now exists that the Bank of England repeatedly pressured commercial banks during the financial crisis to push their Libor rates down. Or to put that another way, the Government agency put pressure on banks to artificially rig Libor. And the Bank of England’s response…… “Libor and other global benchmarks were not regulated in the UK or elsewhere during the period in question.”
 
I’m sick of it all. Banks acting fraudulently for their own gain……encouraged / pressurised by the Bank of England to do so……and all intertwined with the UK Government.
 
Scarily, it took a TV programme to unearth this as Government inquests have failed to find this. What a mess.
 
The banking sector, Bank of England and Government blame anything but themselves. Take accountability for your actions. You can take all the credit in the world for the things you do right as long as you also take responsibility for the things you do wrong. It must be a balanced equation. You don’t get it one way and not the other. You get to take credit when you also take accountability.
 
Time for accountability please.

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