Wednesday, July 4, 2012

UPDATE(3): LIBORfest courtesy of Naked Capitalism & Yves Smith

Additional morning links for LIBORfest

Libor Scandal May Have Broken Key Market-Stress Measure WSJ Economics Blog. Where have these guys been? Lambert pointed this out as soon as the scandal broke.

More links from Naked Capitalism for LIBORfest

Rate Scandal Stirs Scramble for Damages New York Times (furzy mouse)
The Libor $candal Explained – The Largest Banking Scandal in History 4ClosureFraud (furzy mouse). Nice infographic
Libor scandal: Bob Diamond ‘dismayed’ by MPs’ claims BBC (Richard Smith)

The STENCH from this event is staggering in so many respects.  Naked Capitalism continues to provide detailed insight into this perspective of global finance.

The rotten heart of finance Economist. Debunks the idea that the rate fiddling was “victimless.”
Barclays’ US deal rewrites Libor process Financial Times (furzy mouse)

From Naked Capitalism's Morning email (Yves Smith): 

Liborfest! And sadly, I’m going to be on a plane when the Treasury hearings are on. If readers can point to live feeds (for those Libor junkies, some have written asking for leads) and any sites that have either the recording for later viewing or a transcript, that would be very much appreciated.
In general, I’d not bet on an American CEO when matched against Oxbridge educated regulators. Just the British mastery of the language puts Yanks at a disadvantage. And they aren’t used to the more direct style of questioning either.
The Guardian has a live blog: Barclays blames ‘senior Whitehall figures’ for Libor scandal as Bob Diamond resigns – live (Lee S) 
City faces a double crisis over trust and reputation, FSA’s Lord Turner warns Independent 
Diamond lets loose over Libor Financial Times 
Financial scandal: Diamond’s not for ever Guardian 
Diamond: ‘Unacceptable face of banking’ who showed no remorse Independent 
Diamond may face a fight for his £20m final payout Telegraph 
Supplementary information regarding Barclays settlement with the Authorities in respect of their investigations into the submission of various interbank offered rates Barclays 
Fink Says Diamond ‘Emotion’ May Have Aggravated Regulator Bloomberg
Defiant Barclays Felix Salmon. Agreed. 
Diamond’s exit alone won’t restore banking’s reputation Financial Times 
Parliamentary inquiry into banking scandal in balance Telegraph 
Everything You Wanted to Know About LIBOR, but Were Afraid to Ask Minyanville. This is not bad, but it completely misses the deriviates/swaps part of this. It was derivatives traders at Barclays who were manipulating LIBOR, apparently in cahoots with other banks (meaning LIBOR is not being manipulated for funding benefits, but to take advantage of customer positions). The Barclays statement on the earlier rate manipulation (2005-2008) made it clear that Barclays might not have benefitted. That suggests the traders at least some of the time were manipulating LIBOR to raise it. 
Why is Nobody Freaking Out About the LIBOR Banking Scandal? Matt Taibbi (Aquifer)
What’s Next After the Barclays Settlement New York Times

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