Sunday, July 15, 2012

Libor truths will eclipse Lords Reform, Coalition Woes and transform British politics!

Sky News has a leaked memo this morning from the Barclays Bank Executive Board in a report linked here, from which comes this quote:

In a memo sent to staff yesterday evening and which has been leaked to (Mark Kleinman, the article's author), the nine members of the bank's executive committee warned that the Libor crisis should not distract them from the core task of safeguarding Barclays' vast balance sheet.
"The macro-environment remains febrile, especially in Europe. We have to remain vigilant on balance sheet exposures and risk management. In short, our focus must remain on capital, funding and liquidity; improving returns; and driving income growth."
The memo, co-written by Marcus Agius, Barclays' outgoing chairman, apologised for the impact of the rate-fixing episode on the bank's staff, but hinted that its rivals were likely to be hit even harder than the £290m in fines imposed on Barclays.
"As other banks settle with authorities, and their details become public, and various governments' inquiries shed more light, our situation will eventually be put in perspective."

Of course it is not just other banks. The true scandal and the eventual truth that will emerge is that it was the Central Bankers and the then governing politicians in Downing Street who conspired to create the crisis.

The posting on my blog from 24th September 2008, quoting a report from Bloomberg gives the entire game away from this one statement:

"There's no real term funding markets except for central banks," said Meyrick Chapman, a fixed-income strategist in London at UBS AG. "The Libor is meaningless. It's for unsecured lending and there is no unsecured lending as far as I can see."

Therefore it is obvious that if there was no unsecured lending in September 2008, and you can read my blog archive for that month by clicking here to recall the prevailing chaos, then as Libor rates continued to be issued, they appeared only as a result of a conspiracy between Central Bankers presumably at the behest of their political masters with ultimate responsibility resting with Gordon Brown in Downing Street, (already widely suspected of having become almost completely unhinged).

The fact that Brown, Darling and those others New Labour ministers and placemen involved have yet to be called to account, speaks volumes on Britain's present methods of governance, in which Lords Reform can immediately be seen to be a complete irrelevance.

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