By Dirk Tejan
In what some are calling the largest banking scandal of all time, multinational banking giant Barclays and the Bank of England have been implicated in yet another massive financial scandal: the misconduct involved the fluctuating London Interbank Offered Rate (LIBOR). Simply put, this is the rate at which banks can borrow from one another and it affects not only Britain, but many banks around the world.
On Wednesday, Bob Diamond, former CEO of Barclays was forced to testify in front of British Parliament. According to e-mails, it
appears that in 2008, Paul Tucker, the Deputy Governor of the Bank of England, encouraged Diamond to artificially lower LIBOR rates, thus
effectively stealing massive amounts of money from investors all over the world. According to a recent Rolling Stone magazine article it seems that, even worse, Tucker was only following orders from his bosses, that is, those within the highest levels of British Government.
While all of this seems appalling, does it really rise to the level of “the largest banking scandal of all time” as some are saying? Of course it makes the billions stolen from investors last year by Former New Jersey Governor and MF Global CEO Jon Corzine, look like chump change. You know, Corzine never served any jail time. Do you suppose his Goldman Sachs and political connections had anything to do with that?
Of course, we all remember the trillions in “bailout” money the taxpayers were forced to pay to the “too big to fail” international banksters. A recent audit of the Federal Reserve confirmed that the U.S. taxpayers provided a whopping $16 TRILLION in secret loans to bail out U.S. and foreign banks and businesses. According to a February 9th Bloomberg article, in 2009 every mortgage in America only amounted to $10.5 trillion! The amount of money stolen from America was enough to cover every home loan in the country.
After the Bankers lobbied (paid off) Congress to repeal the Glass Steagall act in the 90’s, the banking world became a gamblers paradise. (Paradise is defined as a place where others are forced to pay off your debts, but you get to keep all of your winnings).
But, as big as the “bailouts” were, (right now let’s not mention the massive derivative implosion that is on the way), does even the Bankster bailouts reach the level of “the largest banking scandal of all time?”
Perhaps the largest banking scandal EVER is central banks in general, such as the Federal Reserve, or the International Monetary Fund. While a quick look shows that the leadership of international banking giant Goldman Sachs and the Federal Reserve are closely intertwined, the Federal Reserve is not “Federal” and is not a “Reserve”. That’s right; the Federal Reserve is a privately owned bank, with the protection of the power of the Federal Government behind it.
The United States Constitution originally allowed only Congress to print money. In 1913 President Wilson changed that with the Federal Reserve Act. This act allowed the privately owned “Fed” to print money and charge interest to the American people. After the dollar was de-coupled from the gold standard, the Fed was allowed to essentially print money out of thin air! For many years the “Fed” has been allowed to charge interest to America on this “Fiat” (phony) money! Meanwhile they have enjoyed their government protected monopoly status. Perhaps Thomas Jefferson was right in saying “I believe banking institutions are more dangerous to our liberties than standing armies.”
So what has been the “Largest Banking scandal of all time?” You be the judge.