Best of the Week
Most Popular
1.Scottish Independence YES Vote Panic - Scotland Committing Suicide and Terminating the UK? - Nadeem_Walayat
2.Independent Scotland Will Disintegrate as Unionist Regions Demand Referendum's to Rejoin UK - Nadeem_Walayat
3.Bank of England Panic! Scottish Independence Bank Run Already Underway! - Nadeem_Walayat
4.Gold and Silver Price Ready To Go BOOM - Austin_Galt
5.Gold and Silver Potential Price Meltdown Scenario - Rambus_Chartology
6.Scottish Independence UK Catastrophe - The Balkanisation of Britain - Video - Nadeem_Walayat
7.The Price Of Gold And The Art Of War Part I - Darryl_R_Schoon
8.Main Reason Why Scotland Will Vote NO to Independence, 70% Probability - Nadeem_Walayat
9.Heavy Gold and Silver Shorting is Bullish - Zeal_LLC
10.10 Year U.S. Treasury Short Best Place to be Remainder of 2014 - EconMatters
Last 5 days
Scottish Independence SNP Lies on NHS, Economy, Debt, Oil and Currency - 17th Sept 14
The Truth Behind the Dangerous "Helicopter Money" Delusion - 16th Sept 14
Central Bank Balance Bullying: Investor Implications - 16th Sept 14
U.S. Dollar and Gold Elliott Wave Projection - 16th Sept 14
The Origins and Implications of the Scottish Referendum - 16th Sept 14
The Collapse Of U.S. Silver Stocks As Public Debt Skyrockets - 16th Sept 14
Emerging Markets Are Set Up for a Crisis, What’s on Your Radar Screen? - 16th Sept 14
Scottish Independence Bank Run Already Underway - Video - 16th Sept 14
The Emergence of the US Petro-Dollar - 16th Sept 14
Economic GDP Drives Stock Prices Inestment Myth - 16th Sept 14
Don't Miss This Gold Buying Opportunity - 16th Sept 14
Why ECB QE Is Bearish For Gold Prices - 15th Sept 14
Property Rights and Property Taxes—and Countries That Don’t Have Them - 15th Sept 14
Junior Miners Breaking Out Higher Forecasting Gold and Silver Price Bottom? - 15th Sept 14
Stock Market Patiently Waiting for Mean Reversion - 15th Sept 14
A Closer Look at the US Dollar - 15th Sept 14
The Silver Price Sentiment Cycle - 15th Sept 14
Stock Market Correction Underway - 15th Sept 14
Marc Faber - “I Want To Be Diversified, I Want To Own Some Gold” - 15th Sept 14
The Myth of Nuclear Weapons - 15th Sept 14
US Dollar Forecast to Go Much Higher - 15th Sept 14
Analysis And Price Projection Of The Uranium Market - 15th Sept 14
Bank of England Panic! Scottish Independence Bank Run Already Underway! - 15th Sept 14
The Ethics of Entrepreneurship and Profit - 14th Sept 14
The Big Investor Opportunity in the Orbital Space Junkyard - 14th Sept 14
Kohl's and The Rest of The Retailers are in Deep Doo Doo - 14th Sept 14
Independent Scotland Will Disintegrate as Unionist Regions Demand Referendum's to Rejoin UK - 14th Sept 14
Stock Market Pullback Continues - 13th Sept 14
SNP Fanatics Warn of Day of Reckoning for Scottish Independence No Campaigners - 13th Sept 14
Scottish Independence Would Shake Up the Global System - 13th Sept 14
The World Order Becomes Disorder - 13th Sept 14
Is Geothermal Power About to Become The Next Great Battleground Over Fracking? - 12th Sept 14
Heavy Gold and Silver Shorting is Bullish - 12th Sept 14
Strong U.S. Dollar Undermines Gold and Silver - 12th Sept 14
Debt And The Decline Of Money - 12th Sept 14
Panic On The Streets Of London ... Can Scotland Ever Be The Same Again? - 12th Sept 14
Will The Real Silver Commercials Stand Up? - 12th Sept 14
If You Own Only One Investment, Make Sure This Is It - 12th Sept 14
Main Reason Why Scotland Will Vote NO to Independence, 70% Probability - 12th Sept 14
Better Days Ahead For U.S. Stock And Housing Market - 12th Sept 14
U.S. Meddling Dims Prospects for Ukraine Peace - 12th Sept 14
Is the Fed Preparing to Asset-Strip Local Governments? - 12th Sept 14
China Holds “Gold Congress” - Positioning Itself As Global Gold Hub - 11th Sept 14
Fire Ice Could be Energy's Magic Bullet or a Planet-killing Catastrophe - 11th Sept 14
The Mass Psychosis Of 9 /11 Will Never Be Healed - 11th Sept 14
Radical Islam's Crisis of Competing Caliphates - 11th Sept 14
Ukraine Crisis And Self-Determination - 11th Sept 14
Cameron and Miliband Desperately Attempt to Prevent Scotland Committing Suicide - 11th Sept 14
A Supply Crunch Points to Higher Uranium Prices - 11th Sept 14
The Myanmar Shadow - 11th Sept 14
Europe Takes the QE Baton - 11th Sept 14
Full Frontal Inflation - 11th Sept 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Huge Stocks Bear Market

LIBOR This - HooHa: Finally, A Few Bankers Face Criminal Prosecutions For Conspiracies

Politics / Banksters Dec 22, 2012 - 03:23 PM GMT

By: Danny_Schechter

Politics

New York, New York: When most mainstream media outlets discuss conspiracy theories, it is usually to debunk the views of dissenting and critical thinkers who are routinely denounced as simplistic, paranoid or worse. 

You have frequently seen the mantra questioning their motives and conclusions as if the idea of people or officials acting together covertly to advance their interests in illegal ways is something new in history.


Until recently, US press outlets characterized conspiracy arguments as rants that lacked any factual basis, engaged in guilt by association and stretched the facts.

The only conspiracy charges they tended to look at uncritically were criminal complaints against the Mafia under anti-racketeering statutes like the RICO statutes. Prosecutors loved these cases because normal concerns with  protecting  the rights of defendants didn’t apply when hearsay evidence was permitted.

But now, four years after the financial crisis, prosecutors have finally discovered what critics have been alleging repeatedly:  that big banks were  crooks, engaging, engaging among other illicit practices,  in secretive, illegal and conspiratorial schemes to rig baseline interest rates and manipulate credit markets,

It has now been admitted that traders at two major financial institutions were fixing LIBOR—the London Interbank Offered Rate, used to set the interest rates of $800 trillion worth of financial products, including credit cards and mortgages.

That figure again: $800 trillion!

The banks: Barclays and UBS. At first, regulators got them to agree to pay fines in so-called “settlements,” which are viewed by these institutions as a cost of doing business.

Barclays shelled out $450 million, but UBS went further paying a whopping $1.5 billion fine. They also admitted to fraud and bribery. (Usually banks settle such complaints with out any admission of responsibility).

The Brits took the money, but US prosecutors went further and also lodged criminal charges against two former UBS senior traders for the Libor manipulation. They are the first individuals to be charged in what Reuters called “the wide-ranging investigation that involves more than a dozen big banks.”

(Note: Only two were charged, and neither works for UBS anymore. The Naked Capitalism site scoffed: “"So far, the top echelon of UBS is unaffected by this epic scandal. Until we see executives suffer (and fines are insufficient if they remain wealthy), it’s a no-brainer that this type of behavior will continue, albeit in different businesses and new guises.")

The practices were “absolutely rampant” between 2005 and 20 10, according to the Daily Beast which also noted:

“Both the Barclays and UBS settlements show a combination of systemic corruption—senior officials who did not seem to care about illegal activity going on—and a tight-knit, foulmouth fraternity among the traders themselves. While the Barclays boys talked about buying each other Bollinger, (ie. pricey champagne), the UBS fixers deployed nicknames, profanity, and a total disregard for the fact that their communications with each other might one day be made public. “

The Wall Street Journal couldn’t ignore the story and reported that regulators “alleged” a vast conspiracy, even after the banks admitted to some of what they had done.  Rupert Murdoch couldn’t resist his tabloid training by having two UBS stars quoted in large type on the front page:

•Said a Broker to a Trader: “”Mate your getting bloody good at this Libor game...think of me when yur on your yacht in Monaco won’t yu.”

•Said The Man Called “Trader A:” I need you to keep it as low as possible..if you do that…I’ll pay you, you know, “$50,000, $100,000 dollars.. whatever you want…I’m  a man of my word.”

Notice these violations of banking regulations are always presented as victimless crimes or crimes that only affect investors, never people who lose jobs or homes or how they impact on the economy worldwide,

Most of the coverage does not link all these financial crimes to the larger effect and impact they have had on the world.

Last June, Congresswoman Maxine Waters tried to raise these issues with Ben Bernanke, the Chairman of the Federal Reserve Bank asking him to take action. He retreats into bland and passionless responses. It didn’t seem he was in much of a hurry to anything. (Watch her efforts on You Tube” http://www.youtube.com/watch?v=GJX-0944ass&feature=player_embedded

Months later, other regulators in Britain and the US acted but also in a low-key way.

These prosecutions are highly selective and show a real unwillingness to crack down on bank crimes, even when they involve drug running.

Former NY State Governor Eliot Spitzer, and a former prosecutor who went after Wall Street commented on a refusal to go after the HSBC Bank on these charges, “"The decision to not prosecute in this instance belies everything that the government has ever done with regard to drug prosecutions everywhere.  

“I mean, when you think about the way they behave toward ordinary people who get caught up in drug cases, where they seize all your property and they use absolutely the maximum sentences they can possibly avail themselves of, and in this case they catch a bank that launders billions of dollars for Colombian and Mexican drug cartels … for years on end, and they can’t find something to charge these people with?"

"If the law doesn’t apply equally to everybody, then you don’t really have a system of law.  

It’s not just the banks or governments. The media seems to just be admitting that many banks are run like criminal enterprises.

I and other in the independent media have been making these points for years, as the website Zero Hedge noted:

•Fraud caused the Great Depression and the current financial crisis, and the economy will never recover until fraud is prosecuted

•Criminal fraud is the main business model adopted by the giant banks.

•Largely because they are out-of-control criminal enterprises, economy cannot recover unless the big banks are broken up.

•The Obama administration has made it official policy not to prosecute fraud. Indeed, the "watchdogs" in D.C. are so corrupt that they are as easily bribed as a policeman in a third world banana republic.

•Instead of prosecuting, the government throws money at them

•As Nobel prize-winning economist Joseph Stiglitz noted years ago:

"The system is set so that even if you're caught, the penalty is just a small number relative to what you walk home with. The fine is just a cost of doing business. It's like a parking fine. Sometimes you make a decision to park knowing that you might get a fine because going around the corner to the parking lot takes you too much time."

Slowly, these concerns are working their way into the media but without much of the larger framework presented in a dire global economic report on just how deeply the world economy has been wounded.

The UN reported that it will take until 2017 before jobs come back to pre crisis levels, if they ever do, Global recession could easily deepen given the problems with the US, European and, now, the Chinese economies.

Much of this tracks back to the financial crimes that are just officially being acknowledged. It’s important to remember the warnings of Vanity Fair’s Graydon Carter who, years ago,  referred to the criminal practices of big bankers, when he said: “Never have so few done so much to so many.” 

Also note that none of this “back story” is ever referenced in the reporting on the so-called “fiscal cliff” negotiations. It is rarely mentioned how much of the money owed is in interest due banks. We keep hearing reports about our economic woes without any discussion of what is behind it.

News Dissector Danny Schechters film and book Disinformation. For more information, Http://www.plunderhecrimeofourtime.com.

News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments to dissector@mediachannel.org

© 2012 Copyright Danny Schechter - All Rights Reserved


Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014