Barclays’ Libor Scandal: Prison Will Remedy…(+ Rope!)
by Larry Doyle
July 2, 2012
Many executives on Wall Street and in The City, London’s central business district, have reason to be VERY NERVOUS this morning.
Their sweaty palms have nothing to do with the ongoing crisis in Europe or this week’s likely weak employment report here in the United States. The nerves have everything to do with the fallout from the Libor-manipulation story that has been centered on Barclays but likely encompasses every major bank in the global markets.
The industry would like to take one large broom and sweep this story back under the rug. The weekend ‘execution’ of Barclays chairman Marcus Agius is an attempt to do just that.
This Libor intrigue is only the latest of the financial industry’s market manipulation schemes. What do people think was going on in the auction-rate securities markets? How about the daily trading within the equity markets?
Manipulating markets has gone on for ages. As a resident member of the Sense on Cents Hall of Fame shared with us a few years back, “markets don’t go up, they’re put up.”