Tuesday, July 3, 2012

Bill Black: The LIBOR Scandal Represents the Largest Rigging of Prices in the History of the World by many Orders of Magnitude

Bill Black, S&L-era Regulator, Associate Professor of Law and Economics, author, and Ph.D. in White Collar Criminology, discusses the LIBOR (London Inter-Bank Offered Rate) rigging scandal:

The magnitude of the LIBOR rigging scandal: What we have seen is a Cartel in operation, which did distort LIBOR for the benefit of the largest banks in the Cartel. It is the largest rigging of prices in the history of the world by many orders of magnitude.

The impact of financial sector reform on this kind of activity: Efforts to reform the financial sector to date are not genuine; they are highly political. There is a competition for laxity in London. There has been a collapse of ethics and governance in the system. It has degenerated into something that threatens the crown jewel of London, which was LIBOR.

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