Are handcuffs needed for the Libor scandal to be taken seriously?
Dennis Kelleher, president and CEO of Better Markets Inc., and Felix Salmon, Reuters finance blogger, join “Viewpoint” host Eliot Spitzer to assess the latest developments in the Libor scandal, including news that banks are spreading the blame for rate manipulation by implicating rival banks.
“One of the most shocking things about the Barclays scandal is — and the Libor scandal, larger — is if you read the emails, listen to the voice mails, the instant messages, there isn’t even a whiff of any of these people thinking for a moment that they would be caught or held accountable. The level of brazen lawlessness is actually a reflection of the fact that law is not applied to them,” Kelleher remarks. “I think when the handcuffs come out, you’ll actually start to see maybe some real changes in both the business model and this whole concept of no supervision ’cause ‘we don’t have to follow the law.’”