Some selective memory on LIBOR shown today
Barclays Bank is the the worst bank in the world and everyone should resign. hmmm
Barclays chief threatens to hit back | ft.com
Bob Diamond is threatening to reveal potentially embarrassing details about Barclays’ dealings with regulators if he comes under fire at a parliamentary hearing on Wednesday over the Libor rate-setting scandal, according to people close to the bank’s chief executive.
LIBOR has operated under a highly loose framework since inception.
The notion that LIBOR has been some kind of technocratically defined daily rate and that Barclays somehow subversively undermined that rate definition is a classic example of all politicians developing selective memory.
LIBOR (London Interbank Offered Rate) is relatively new, and that newness evolved to become LIBOR = Derivatives.
Derivatives were not on the radar in 1984 when LIBOR arrived on the scene. However when we look at the LIBOR situation today as defined in the
judgement against Barclays.
This is not to let Barclays off the hook. Nor is it to let the other 20 banks involved and not yet named, off the hook. But my recollection of LIBOR when it began is not the precise market defined rate that the ‘holier than thou’ crowd today pretend it to be.