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