The world is reacting in “shock” at the LIBOR-fixing flap at Barclays. The truth is that this manipulation has been happening for years. I first heard stories about interest rate fixing as far back as 2007. Hell the world’s central banks have been doing it unabashedly now for a couple of decades. Bankers have been rigging markets and taking unfair advantage of clients, countries and taxpayers forever. Rarely has there been a period as prolific as the last 15 years however, when technology and globalization have aided and abetted a revolving door between government, regulators and finance that has richly rewarded its key participants while widely tolerated and celebrated by naive masses. If society is truly ready to face facts now and root out this evil, then there is an endless body of evidence that will confirm the cesspool culture that is global investment banks.
The problem is that they have not acted in a vacuum. It is both credit(crack)-dealers and credit-addicts that have caused our present carnage. When everyone is “on the take”, no one is protecting vital principles and integrity and ethics descend into anarchy. Pretty much where we stand today. No one should be surprised to hear the gory details. The whole culture of banks must be up for a complete overhaul and hand in hand with this process, the proceeds of crime must be taken back from the principals and executives that have profited from it.
JPMorgan Chase was downgraded to “hold” by Meredith Whitney, founder/CEO of the Meredith Whitney Advisory Group. “This was the only large cap bank stock we had recommended, and now it is more in line with our negative stance on the group,” she says. Here is a direct link.