Mitt Romney is apparently not having the best time in Britain thus far. But things will get significantly better when he attends a big fundraiser tonight populated by many executives from Barclays Bank, the firm at the heart of the Libor scandal. While Bob Diamond, the former CEO, has dropped out of the event, Patrick Durkin, the top lobbyist at Barclays US operation, is a co-host (and also a major bundler for Romney). All the attendees are US citizens who either live in London or who traveled for the event.
|By: David Dayen Thursday July 26, 2012 4:50 pm|
|By: David Dayen Wednesday July 25, 2012 7:45 am|
I think we have enough data to close down the years-long human experiment into whether austerity hurts economies in recovery. With last quarters result in, this is the first double-dip recession for Britain since the 1970s, and the longest and biggest since quarterly record keeping began after World War II. In addition, the British economy is now smaller than it was when Conservative Prime Minister David Cameron took office in May 2010.
|By: David Dayen Friday July 20, 2012 6:17 pm|
Markets on the continent are melting down, particularly due to the increased Spanish borrowing costs. As I explained yesterday, the votes in Germany to approve the bailout of Spanish banks, which was reiterated by the Eurozone, effectively reversed the results of the EU Summit by making it explicit that the Spanish government would be on the hook for the bailout funds, rather than direct injections into the banks themselves.
|By: David Dayen Tuesday July 17, 2012 10:15 am|
The British Parliament continued their investigation into Barclays Bank and the Libor scandal this week, and it’s just getting worse and worse for everyone involved. Yesterday, Jerry del Missier, the former COO of Barclays, testified that he was instructed by CEO Bob Diamond to manipulate the Libor down in 2008, to mask the ill financial health of the bank.
|By: David Dayen Monday July 16, 2012 8:30 am|
If there is a genuine effort to bring criminal charges in the Libor scandal, the Justice Department will have plenty of banks to choose from – Deutsche Bank, cooperating with EU and Swiss regulators, is just an example – and can round up a couple low-level bankers for the perp walk photo-op. But this would be a classic deflection strategy. Because the more you learn about Libor, the more you must reserve some of your fury for the regulators.
|By: David Dayen Sunday July 8, 2012 5:00 pm|
A whistleblower from Barclays Bank makes the obvious point that former CEO Bob Diamond had to know about the various fixings of the Libor benchmark inter-bank lending rate before he claims to have found out: Speaking on condition of anonymity, the banker says that senior Barclays bosses would have been told about Libor concerns because [...]
|By: David Dayen Friday July 6, 2012 9:48 am|
In Britain, the investigations into Barclays Bank manipulating the benchmark Libor rate have begun in earnest. Parliament approved an official inquiry into the Libor scandal, though only at the Parliamentary level rather than an independent investigation.
|By: David Dayen Thursday July 5, 2012 9:06 am|
The Bank of England, People’s Bank of China and the European Central Bank all cut lending rates or added quantitative easing today, a near-global spurt of monetary stimulus designed to increase economic growth. Because the Federal Reserve hasn’t joined in, the dollar is growing stronger, which is bad news for US exports.
|By: David Dayen Wednesday July 4, 2012 11:42 am|
There’s a closely watched Parliamentary hearing with Bob Diamond, the former CEO of Barclays Bank who resigned after the scandal of bank employees rigging the benchmark Libor inter-bank lending rate. It’s been fairly explosive, as Diamond accused Paul Tucker, deputy governor of the Bank of England, of essentially encouraging Barclays to manipulate the Libor rates, to make their financial situation look less dire.
|By: David Dayen Monday July 2, 2012 1:30 pm|
Along with Barclay’s Bank, sixteen other major financial institutions are implicated in the scandal. In the simplest terms, Barclays admitted to manipulating the inter-bank lending interest rates to cash in on derivatives and also mask weaknesses in its balance sheet. But the LIBOR (which stands for London Inter Bank Offered Rate) is used as a benchmark lending rate all over the world. Adjustable-rate mortgages were calculated using the LIBOR. The exposure on this could be enormous.