The Great Libor Rate Manipulation Caper - Bob Diamond Resigns
[UPDATE : June 3, Bob Diamond has resigned as CEO of Barclays - with immediate effect - a bit foa surprise it happened so quick, just a week or so since the LIBOR fixing scandal broke - and just a few days after I published my blog post! Such is the power of the written word :-)]
"Why do you rob Banks Mr Dillinger?"
"Because that's where the money is (dumbo)." John Dillinger's (public enemy numero uno) famous reply to his judge in court.
He could also have robbed jewelry stores of course if he had been interested in diamonds, but he obviously prefrred cold hard untraceable cash.
But, despite Mr Dillinger's inflated opinion of himself, that's the dumb way to rob banks, unless you also like getting shot at - see video of Dillinger below - complete with whacky subtitles and cutesy music
The smart way to rob banks involves inside jobs and computer terminals - here is an email from one of the people involved in the Barclay Libor interest rate fixing scam (or was it just an innovative scheme?) in a move known to insiders as "covering your donkey" -
As the U.S. Dollar senior submitter said in October 2008 to his supervisor at the time, “following on from my conversation with you I will reluctantly, gradually and artificially get my libors in line with the rest of the contributors as requested. I disagree with this approach as you are well aware. I will be contributing rates which are nowhere near the clearing rates for unsecured cash and therefore will not be posting honest prices.”Will there be compensation made to Joe Public mortgage payer? Will there be litigation? Will Barclays and other bank share prices tank even further? Will Bob Diamond sit on his sword? We are holding our breath. In the meantime here's a look at Barclay's share price charts.
First the 10 year chart - that line around 100p looks very tempting
Now the 6 month chart
Falling knives? Only for the brave? At the low point today it was down 20% to 164p - when the City finally realized that people outside their little cosy bubble were taking this latest Barclays' pile of poo seriously and there might actually be serious consequences.
For further reading about how to interpret stock charts check out - http://www.sharescity.com/2010/02/stocks-and-shares-for-beginners.html
That's all Folks! (Until the next time that is - what will they cook up for us next?)