Tag Archive for New York Fed

Evidence in Libor rate-rigging sheds light on regulatory authorities’ implicit approval.

Recent evidence in the Libor rate-rigging scandal sheds light on the implicit approval of regulatory ‘authorities’ who had knowledge of bankers’ long-standing manipulation of the Libor. This “see no evil, speak no evil” regulatory approach must be met with serious repercussions for all those involved.

We should be nurturing an economic environment that enables no-nonsense regulators who have the manpower, funding and GUTS to impose heavy sanctions. Instead, Stockholm Syndrome appears to be a recurring theme in recent regulatory failures.

From The New York Times

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Geithner’s 2008 Libor recommendations display textbook regulatory capture.

It’s no wonder the Fed and big banking lobbies resist increased transparency. As head of the New York Federal Reserve, Treasury Secretary Timothy Geithner had the opportunity to act on Libor rate-rigging back in 2007-08. Instead, he took marching orders from the very U.S. banks that were wreaking havoc on our domestic economy.

Three decades of regulatory capture, manipulated interest rates, collusion, and disregard for the public interest culminate in a perfect storm of self-dealing, political corruption and global fraud. As loyal Americans, our first instinct is to defend free market capitalism, but we can no longer mistake that economic system with the international corporatism now in place.

From The Huffington Post

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