The Lying Bankers and Their Government Enablers
The “LIBOR scandal”, which really should be called the “Lying Bankers scandal”, is more than simply the newest example of bankers systematically stealing from everyone else. In its scale, simplicity, and government complicity the Lying Bankers scandal is perhaps the purest distillation of all that’s gone wrong with our financial system and the government that’s supposed to police it.
The Lying Bankers scandal also offers the clearest opportunity to send bankers to jail. Opportunities, of course, are not outcomes. No one should be sanguine that even this exquisitely clear showcase of banker illegality will necessarily produce meaningful law enforcement. Signs out of Britain are sort of hopeful.
The Lying Bankers scandal in a nutshell: All the biggest banks (allegedly) conspired to manipulate the interest rate underlying trillions of dollars of complex investments and public perceptions of bank health, to increase personal and corporate profits. And governments looked the other way.