MP's Fail to Hold Bob Diamond, Barclays to Account for Libor Fraud, Public Inquiry Needed

By: Nadeem_Walayat

The 3 hour Treasury Select Committee session has just concluded and clearly it has failed to live up to expectations as the politicians failed to hold Bob Diamond the ex-ceo of Barclays to account. The facts are that the FSA and the Bank of England are incompetent because it has taken the regulators 4 years to do only half a job.

After a three house session in front of MP's only two meaningful things appeared to emerge form the exchange of words.

1. That Bob Diamond was allowed to go on and on about how he loves Barclays.

2. That Barclays was forced to cut it's Libor submissions because all of the banks across the world were doing it therefore Barclays which Bob Diamond suggests was a clearly stronger bank than the likes of HBOS and RBS was reporting LIBOR rates above banks that were in-effect bankrupt, so Barclay's was forced to lower its submissions in line with other banks that were manipulating their rates lower else government ministers could have triggered nationalisation of Barclays in the wake of its own relatively high LIBOR rates that Paul Turner of the Bank of England warned him of. However the MP's made the point that Barclay's had been manipulating LIBOR for over a year before Paul Turner's phone call.

Most of the rest was a load of "I did not know what was happening at Barclay's" claims, despite the fact that he apparently did know that other banks were rigging rates whilst not knowing what his own bank was doing.

Next up in front of the UK Treasury 'Whitewash' Select Committee will be the Deputy Governor of the Bank of England, Paul Tucker.

The only answer is for a full public inquiry because the FSA, Bank of England and politicians of all parties are all culpable and anything less will likely result in a cover up of their own collusion in the rate fixing saga which in itself is just the tip of the fraud ice-berg with many more instances of fraud emanating out of the banking sector that ultimately is risking the bankruptcy of the state and in some cases where banks have already bankrupted many countries(Iceland, Euro-zone).

The bottom line is that banking sector fraud is systemic and global.

Meanwhile Ulster Bank part of RBS says it's bank holiday looks set to continue for another 2 weeks, how many small business will go bust due to bankster's incompetence?

By Nadeem Walayat

http://www.marketoracle.co.uk

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Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of three ebook's - The Inflation Mega-Trend; The Interest Rate Mega-Trend and The Stocks Stealth Bull Market Update 2011 that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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