Tuesday, July 3, 2012

ELEMENTS OF SUB-CAPITALISM (ONE)





                  ELEMENTS OF SUB-CAPITALISM (ONE)
 In a press release dated 06/27/2012, David Meister (CFTC) Director of Enforcement said:
“The American public and our markets rely upon the integrity of benchmark interest rates like LIBOR and Euribor because they form the basis for hundreds of trillions of dollars of transactions and affect nearly every corner of the global economy”
“Banks that contribute information to those benchmarks must do so honestly. When a bank acts in its own self-interest by attempting to manipulate these rates for profit, or by submitting false reports that result from senior management orders to lower submissions to guard the bank’s reputation, the integrity of benchmark interest rates is undermined. The CFTC launched this investigation to protect the markets and the public from such illegal conduct, and today’s action demonstrates that we will bring the full force of our authority to bear as we carry out that mission.” In this current transatlantic investigation concerning banks manipulation of Libor and the Euro interbank offered rate (Euribor), the CFTC fine Barclays $450m ($200m to CFTC, $160m to the criminal division of the US Department of Justice, $92,8 m to Britain’s Financial Services Authority). The investigation forced the resignation of the bank chairman Marcus Agius (he is now back!) and the CEO Bob Diamond. Regulators indicated that world's most powerful banks have been fixing the prices of almost every adjustable-rate vehicle on earth: mortgages, credit cards, interest-rate swaps and currencies…ect. It means that banks like Barclays, Citigroup, HSBC, J.P. Morgan Chase, Lloyds, UBS, Royal Bank of Scotland, Deutsche Bank AG (DBK) manipulated the world economy and $800 t. derivatives market. The practice started in 2005.This manipulation and false reporting concerning Libor and Euribor is an expression of a culture of fraud in the world financial. Fraud is an element of depreciation of capitalism. Deregulation can only lead to the development of fraud, weaken our economic system and create sub-capitalism.
Aboubacar Sissoko

No comments:

Post a Comment