Thursday, July 12, 2012 – 12:05 p.m.
The latest growing scandal involving major money center banks, and their complete lack of respect for rules, involves allegations that Barclays, Citigroup, UBS, JPMorgan Chase and others, manipulated the London Interbank Offered Rate (LIBOR) from 2005 to 2008.
LIBOR is the rate banks charge each other for short-term loans.
But, the rate is also used as a benchmark index for setting other lending rates, such as mortgages.
So far Barclays has come clean and admitted wrongdoing in an investigation that appears to be widening.
U.S. regulators are now hot on the trail. Yes, they’re going to ferret out those responsible for the collusion involved.
This new scandal is going to be hard for consumers to swallow, following the 2008 financial collapse brought about by risky lending practices and greed by the same industry.
As people, who were undoubtedly affected by the financial collapse and ensuing recession, discover they may have been burned once again, it’s going to be ugly.
It may be necessary for financial executives, who allow or aid these well thought out schemes, to suffer criminal penalties.
Because it’s obvious the penalties of the civil type aren’t working.
More to come on this issue……..