Libor, UK banks and the Tory connections

[PaddyJoe]

The scandal over wholesale interest rate manipulation is widening to pull in senior Conservative party figures, according to the Independent on Sunday

The Independent on Sunday has learnt that the Conservative deputy chairman, Michael Fallon, is a board member of a leading brokerage firm that dominates the rates market and which has been asked to co-operate with the Financial Services Authority's investigation into malpractice across the City.

Mr Fallon is a close ally of David Cameron and a senior member of the Treasury select committee that will question the Barclays chief executive, Bob Diamond, this week, prompting demands from Labour that he should declare an interest. The Prime Minister continues to resist calls from Ed Miliband for a Leveson-style inquiry into rate-fixing

The questions over the role of Mr Fallon followed the revelation that one of the Prime Minister's closest advisers, the former Tory party treasurer Michael Spencer, is under scrutiny by the FSA. Mr Spencer's brokerage firm ICAP is one of a number of institutions alleged to have helped to manipulate bank interest rates while he was treasurer of the Conservatives. Mr Cameron said yesterday that he needed to "think this through carefully" whether there should be a judge-led inquiry into the Libor scandal

Tories involved in City scandals. Who would a thunk it?

http://www.independent.co.uk/news/uk...l-7901941.html

[C. Flower]

I hear this morning that Cameron wants a referendum on the EU, to do away with all the social protection aspects of EU legislation.

What do people expect when the let parties run by old Etonians get elected ?

[C. Flower]

Rigging the Libor rate (chummy emails leaked saying: "Thanks a lot, I owe you a bottle of Bolly for that") is another confirmation that the financial markets, world wide, are an Old Boys' Thieves Kitchen. It reminds me a little of the Lloyds scandal, in which all the risky business was parcelled out to the small players, who were comprehensively bankrupted, while the big insider boys kept the plums.

[morticia]

I feel vindicated. Had been saying for ages that the proverbial would eventually catch up with the banksters abroad and this is precisely what appears to be happening.

Now, to really make my day, a little something involving Deutsche or Commerzbank....

Schadenfreude....

[ang]

I feel vindicated. Had been saying for ages that the proverbial would eventually catch up with the banksters abroad and this is precisely what appears to be happening.

Now, to really make my day, a little something involving Deutsche or Commerzbank....

Schadenfreude....

All underway with euribor too morticia so far the ECB have refused to release a list of all banks under investigation-

European Commission seized documents from several major banks yesterday. Among those raided was Deutsche Bank's London office, Reuters reported a source saying

Read more: http://articles.businessinsider.com/...#ixzz1zPNx66Jo

JPMorgan Chase & Co., Deutsche Bank AG (DBK) and HSBC Holdings Plc are among at least seven firms facing a Canadian probe into whether they participated in a conspiracy to manipulate prices on interest-rate derivatives. The nation’s Competition Bureau is investigating the firms’ conduct between 2007 and 2010, according to documents it filed with the Ontario Superior Court in May.

http://www.bloomberg.com/news/2012-0...-controls.html

[DCon]

1 down..many more to go

Barclays' Chairman Marcus Agius wil step down immediately. From the WSJ: "Political and investor pressure has mounted on the management of U.K.-based Barclays since the settlement was announced Wednesday. The announcement of Mr. Agius's departure could come as soon as Monday, said one of the people. Mr. Agius, 65 years old, a British-Maltese banker who formerly worked at Lazard Ltd., has led the bank since 2007, steering Barclays through the 2008 financial crisis and avoiding the direct state bailouts that were needed by many of its global peers."

http://www.zerohedge.com/news/barcla...s-first-victim

[MPB]

1 down..many more to go



http://www.zerohedge.com/news/barcla...s-first-victim

Makes Mr Aigus out to be some sort of Banking hero.

" saved Barclays from a bailout " " led Barclays through 2008 crisis ". Considering Barclays were stealing money, at the time of their salvation, you would have to wonder about, how these Banks were saved.

I am willing to bet, that this will bring down the Tory Govt.

And considering the contempt in which the Labour Party is held, Britain is in major trouble.

[PaddyJoe]

This is going to get interesting. Diamond is not going to go quietly
FT front page for Tuesday:

[DCon]

This is going to get interesting. Diamond is not going to go quietly
FT front page for Tuesday:

Diamond just quit Barclays with immediate effect

http://www.forexlive.com/blog/2012/0...ediate-effect/

Says he will still participate in the government inquiry. He is due to appear tomorrow

[DCon]

Lol

john prescott ‏@johnprescott

i thought 'the buck stopped' with marcus agius? Now he's unresigned and bob diamond's gone. Did agius pass the buck to bob?

[Hapax]

Some City experts believe that Bob Diamond's resignation is partly due to a major breakdown in relations with the Bank of England in the last couple of days.

And that could make Diamond's appearance tomorrow at the Treasury Select Committee even more explosive.

A chief executive of Barclays could not declare war on the Bank of England. A former chief executive can.

Note: Bob's resignation is with immediate effect and he seems to be relishing the opportunity to have his say at the Treasury Committee tomorrow. Get your tickets now.

http://www.guardian.co.uk/business/2...quits-barclays

[DCon]

Fun and games ahead?

Nils Pratley, our financial editor, believes this morning's resignation gives Diamond much more leeway to reveal exactly what happened. He writes:

A chief executive of Barclays could not declare war on the Bank of England. A former chief executive can.

Note: Bob's resignation is with immediate effect and he seems to be relishing the opportunity to have his say at the Treasury Committee tomorrow. Get your tickets now.

http://www.guardian.co.uk/business/2...quits-barclays

[TotalMayhem]

A good start would be moving all bank-related threads from politics/economics boards to Society > Crime & Punishment.

[C. Flower]

A good start would be moving all bank-related threads from politics/economics boards to Society > Crime & Punishment.

Good point. Banking and financial services has been a thieves kitchen for at least a century.

At this stage, it is quarrying out the "real economy".

[DCon]

I'd like to see Arry get it!

Is Rich Ricci a legit banker name?

Here are the latest odds from Ladbrokes on potential replacements for Bob Diamond.

Anthony Jenkins 2/1 (chief executive of Barclays retail and business banking)
Bill Winters 5/2
Naguib Kheraj 4/1
Christopher Lucas 6/1
Rich Ricci 6/1
Jerry del Missier 16/1
Gordon Brown 100/1
Harry Redknapp 1000/1