LIBOR scandal gets nasty
Jul 05, 2012
Bob Diamond last night implicated large parts of the Establishment in the rate-fixing scandal.
In a spectacular act of revenge, the fallen financial titan turned on the Bank of England, Whitehall officials and the last Labour government.
His former bank Barclays published documents suggesting the Bank of England leant on him to push down the Libor rate that affects the price of loans and financial products everywhere.
This scandal involved virtually all of the big banks as well as the government. They all lied about interest rates in order to hide the true condition of the banks.
This has the potential of bringing down the whole system. It is a crisis that has the potential of being far worse than the 2008 collapse of Lehman Brothers.