Barclays Libor Scandal: Reports Regulators Knew; Time for Independent Investigation and Eliot Spitzer

With the industry in full defense mode over the fallout from the Libor price-fixing scandal, we catch a strong and overpowering sense of this stench filtering into the public domain once again. Bloomberg highlights as much in a short must-view video clip, Bad Bankers May Face Criminal Charges,

“Fraud is a crime in other businesses, why should it not be so in banking?” 

I would not doubt for a second that the Federal Reserve, U.S. Treasury, the Office of the Comptroller of the Currency, the SEC, the CFTC, and FINRA were all very much aware that Libor was being manipulated throughout the peak of the financial crisis in 2008.

Why wasn't anything done? Market manipulation at that point in time was deemed of secondary importance to saving the system.

What system? A system of crony capitalism reflective of a deeply incestuous relationship between Wall Street and Washington.

We will only learn the truth if we have total transparency. Given the size and scope of this scandal, what should happen?

I firmly believe we need an independent investigation overseen by an independent prosecutor with full subpoena powers. I think Eliot Spitzer would be a good candidate for the position.

Let's see the e-mail exchanges, gentlemen.

The outrage in the UK should be streaming across the pond. I strongly recommend readers view this 80 second clip.

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.