|'Amway UK' propaganda 2007|
In a series of stomach-churning events, strangely-reminiscent of those surrounding the UK authorities failure to investigate 'Amway UK Ltd', the 'Big Brother' of Barclays Bank, Bob Diamond, has now resigned. Predictably, he still steadfastly pretends moral and intellectual authority, but, no matter what reality-inverting script he recites, tellingly, it will not include a common-sense call for a rigorous, independent, criminal inquiry and the re-establishment of the rule of law in respect of all the 'Big Brothers' of the banking fraternity.
As most people already know, last week, regulators in the US and UK fined Barclays Bank more than $450 millions for its role in a conspiracy to rig 'Libor' and 'Euribor' (Libor is the variable key-interest-rate at which banks in London lend money to each other for the short-term in a particular currency. A new Libor rate is calculated each morning by financial data firm Thomson Reuters. It is based on interest rates provided by members of the British Bankers Association. Libor and Euribor directly affect the cost of hundreds of trillions of dollars of financial transactions internationally).
Barclays' senior corporate officers (including Bob Diamond) have so-far admitted that a group of Barclays' traders lied for a number of years (prior to the current world economic crisis), in order to raise Libor and Euribor simply to make additional profits for Barclays and additional 'bonuses' for themselves, but then (when the economic crisis hit) these same traders lied to lower the key-inter-bank-borrowing-rates in order to hide Barclays' true position.
Prime Minister David Cameron, who yesterday launched an inquiry into banking standards, has described these events as 'a scandal'. The UK Serious Fraud Office is only now considering whether to bring criminal charges.