Tags: Libor

Another Day, Another Questionable Bank Settlement

Good thing everyone is now distracted and divided on the whole gun debate so the banksters can once again get off with a slap on the wrist for financial crimes against humanity.  For those that have forgotten what LIBOR is, I wrote about it in my piece My Two Cents on LIBOR-GATE.  This is how the CFTC itself described LIBOR this summer:

The American public and our markets rely upon the integrity of benchmark interest rates like LIBOR and Euribor because they form the basis for hundreds of trillions of dollars of transactions and affect nearly every corner of the global economy,” said David Meister, the CFTC’s Director of Enforcement.

Now here is the punishment for rigging the most important interest rate in the world.  From the NY Times:

It has also charged two former UBS traders with crimes that include conspiracy, wire fraud and violation of antitrust laws. The subsidiary will pay a $100 million fine, and the traders, if extradited and convicted, could go to jail. But the deal leaves UBS itself relatively unscathed. In all, it will pay $1.5 billion to settle allegations of rate-rigging that span nearly a decade and implicate the bank and its bankers far beyond the wrongdoing of two rogue traders.

According to the investigation by the Financial Services Authority, the British regulator, 40 individuals at UBS, including 11 managers, were directly involved in rate-rigging that was carried out to boost trading profits, while at least two more managers and five senior managers were aware of the practice.

Read the Full Article »

Gold Manipulation is Going Mainstream

The article below written by Thomas Pascoe in the UK’s Telegraph is to me evidence that the gold manipulation story is about to go mainstream.  I spent many years writing all about precious metals (physical metal held outside the banking system) as the most logical wealth protection tool in the current environment, as well as the obvious manipulation of gold and silver by the Washington D.C./Wall Street/Central Bank syndicate.  The reason I haven’t written as much about it lately is by no means a reflection of a changed attitude, rather I just think I have said all there is to say on it and I am attempting to wake people up to other crimes and threats.

That said, the LIBOR rigging scandal may be a key inflection point in the public’s awareness and willingness to comprehend the clear gold rigging that has been going on for years and has reached biblical proportions in the last year or so.  What we learned from LIBOR-GATE are two key things.  First, this seems to be a clear conspiracy with Central Banks and the TBTF banks working together to manipulate the interest rate that is used to price over $350 trillion in fixed income securities, swaps and derivatives (basically every security on the planet when we really get down to it).  The Central Banks benefit (and the host governments) since borrowing costs are fraudulently managed lower so as to give the appearance of stability.  The TBTF banks benefit by manipulating LIBOR to profit from leveraged trades on trillions of assets that move based on this interest rate.  It’s a win-win for the syndicate.

In any event, what becomes clear to anyone paying even the slightest bit of attention is that the gold and silver markets are the exact other side of the LIBOR coin.  It doesn’t help to rig interest rates lower if gold and silver are soaring since people will start questioning the purchasing power of the money itself, which if allowed to get out of control will cause interest rates to soar, thus negating the impact of the LIBOR fixing in the first place.  This is so easy even a caveman could get it.

So below are some key quotes from this important article and then a link to it.  Just back from a six day 2,000 mile road trip so I am bit behind.  Hope to have some more posts up later.  Mike

Key Quotes:
The issue of manipulation in the gold market which I wrote about last week is a case in point. The ball of half-truths and downright lies which have surrounded the issue for a long time is beginning to unspool in an issue internet activists kept alive long before it was acknowledged by the mainstream media.

Although Libor manipulation affects the interest rates we pay on all number of credit products, gold market manipulation is more serious still.

The price of gold is traditionally a proxy for the value of money. A soaring bullion price is indicative of a lack of faith in fiat currency.

As with everything in economics, there is a correctional market mechanism for this scenario – the flight to commodities, particularly precious metals like gold. Gold holds its value when paper money loses value, because it is beyond the gift of the government to simply will gold into being and give it to friends in high places or voters in low ones.

Gold price manipulation may well be the next big scandal to break – if it does, this time nobody can say that they were not warned.

Full article here.

My Two Cents on LIBOR-GATE

So much has been written on LIBOR-GATE that I have chosen to refrain from the subject until now.  It is a generally confusing topic for many not in the financial industry (and many that are) so I want to cut right into the heart of the matter.  First of all, in the CFTC’s very own press release about the scandal they wrote:

“The American public and our markets rely upon the integrity of benchmark interest rates like LIBOR and Euribor because they form the basis for hundreds of trillions of dollars of transactions and affect nearly every corner of the global economy,” said David Meister, the CFTC’s Director of Enforcement.

So even the layperson can understand these are the most important interest rates in the world and are used to price hundreds of trillions in ponzi (and legitimate) products.  The key thing however is that the bankster crooks are going to try to spin this as if they were only doing it during the height of the crisis and were working diligently with the Central Bank cabal to “save the financial system, planet earth and potentially the solar system as a whole.”  The mainstream media is mainly reporting this as a financial crisis phenomena.  This is patently untrue.

In fact, as we see from the UK’s Financial Service Authority (FSA) in this Final Notice to Barclays, the bank derivatives traders were in many cases instructing others where to price LIBOR in order to make their positions profitable.  See here:

On numerous occasions between January 2005 and June 2009, Barclays’ Derivatives Traders made requests to its Submitters for submissions based on their trading positions.  These included requests made on behalf of derivatives traders at other banks.  The Derivatives Traders were motivated by profit and sought to benefit Barclays’ trading positions.  The aim of these requests was to influence the final benchmark LIBOR and EURIBOR rates published by the BBA and EBF.

Notice the year 2005.  Prisons were invented for people like this.  Let’s stop playing games, lock these criminals up and claw back every dollar they ever made.

For the full FSA Notice click here.

My Latest Interview with the Most Dangerous People in Financial Media

In case you missed it, Josh Brown recently published a list via the Huffington Post of what he believes are the 25 most dangerous people in financial media.  He definitely got the first two slots correct.  At the very top are Max Keiser and Stacy Herbert, who unrelentingly publish their “Financial War Reports” daily here.  At the number two position, is Zerohedge, the best financial site on the web.  I have been fortunate enough to have collaborated with Max, Stacy and Zerohedge for the past two years and it has been an extremely rewarding experience.  To get to the point, below is my just released latest interview on the Keiser Report.  I think it’s the best one we’ve done in a while.  Enjoy!