Sunday, March 16, 2014

Bill Black — The Most Dishonest Number in the World: LIBOR

The FDIC has sued 16 of the largest banks in the world plus the British Bankers Association (BBA) alleging that they engaged in fraud and collusion to manipulate the London Inter-bank Offered Rate (LIBOR). BBA called LIBOR “The most important number in the world.”....
 Consider the ethical and political implications of what the FDIC investigation has confirmed. The entire barrel of apples is rotten. Every CEO failed the ethical test, and the ethical bar that they failed to surmount was set exceptionally low. That can only happen when a “Gresham’s” dynamic has been allowed to persist for years because of the three “de’s” (deregulation, desupervision, and de facto decriminalization). Such a dynamic can cause “bad ethics to drive good ethics out of the markets.” No one should be able to view the facts the FDIC cites without a sense of horror combined with an urgent commitment to transform the industry that has done so much financial and ethical harm to our nations. The twin emergencies are global....
New Economic Perspectives
The Most Dishonest Number in the World: LIBOR
William K. Black | Associate Professor of Economics and Law, UMKC

2 comments:

googleheim said...

Baseball hotdogs apple pie and LIBOR rigging
Yee haw hee haw

The Rombach Report said...

I'M SHOCKED! SHOCKED to find out there is gambling going on in this casino!