Monday, July 09, 2012

Barclays Adds to Bankers' Poor Image

The revelation that Barclays Bank manipulated the LIBOR interest rate is another example of corruption among world class bankers.  Although Barclays is the only bank which has admitted guilt so far, it seems clear from emails and other documents that the manipulation was widespread among the other world class banks that Barclays did business with, probably including such big names a JP Morgan Chase and Citibank. Jamie Dimon was just on Capitol Hill testifying about loosing billions of dollars in bad investments, but the Senators and Congressmen basically gave him a pass.  With few exceptions they praised him and asked for his advice on banking regulation and the economy.  I was ashamed of my Senator, Michael Bennet, for kowtowing to Dimon by throwing him softball questions.  Now Jamie Dimon's similarly named colleague at Barclays, Robert Diamond, has resigned under pressure for rate fixing.

It is clear why the banking community, and Jamie Dimon in particular, were so opposed to Elizabeth Warren's taking over the Consumer Financial Protection Bureau.  They were afraid that she would be a real police woman, and they knew that they were dirty.  They may not be criminals, but they are dishonest and corrupt.  They have just manipulated the Congress to make it legal to do the unscrupulous things that they do.  Their actions are often so complicated and involve such obscure financial instruments that it is very difficult to specify them as crimes, but Elizabeth Warren, as a Harvard law professor, could probably have done it.  So, Jamie Dimon and his fellow big-shot bankers paid lobbyists and congressmen and senators directly to keep her out.  He obviously got to President Obama, too, which is why I am not voting for Obama.  He sold out America for something -- money, Jamie Dimon's love?  I don't know what, but I don't like it.  It was not good for the country.

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