Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Tuesday, December 11, 2012

Libor Manipulation Scandal: Britain's Serious Fraud Office Arrests 3 In Interest Rate Probe

LONDON, Dec 11 (Reuters) - Britain's Serious Fraud Office (SFO) and London police have made the first arrests as part of a global investigation into the manipulation of interbank lending rates, a scandal that has rocked the banking industry.

The SFO said on Tuesday three British men, aged 33, 41 and 47, were taken to a London police station for interviews in the early morning after three properties were searched.

An SFO spokesman said the interviews were continuing.

"The men are all British nationals currently living in the United Kingdom," the SFO said in a brief statement.

Prosecutors and regulators across Europe, the United States, Canada and Japan have been investigating how traders attempted to rig key benchmark lending rates such as Libor (the London

interbank offered rate) after the U.S. Commodity Futures Trading Commission initiated an industry-wide probe in October 2008.

Dozens of people have been fired by banks and are under investigation in the probe into benchmarks like Libor, which underpins around $550 trillion of loans and financial contracts.

Sources familiar with the investigation said in July regulators and prosecutors in the United States and Europe were closing in on individual traders and that arrests were expected shortly.

In the first settlement with UK and U.S. regulators, Barclays agreed in June to pay $450 million in fines and penalties to settle allegations by regulators and prosecutors that some of its employees tried to manipulate key interest rates from 2005 through 2009.

It was also accused of low-balling rates during the 2007/08 credit crunch.

Similar financial settlements are expected shortly with banks such as Switzerland's UBS and Britain's RBS , although around a dozen banks are being investigated.

Spokespeople for Barclays, UBS and RBS declined to comment on the arrests.

Original Article
Source: huffington post
Author: Kirstin Ridley and Matt Scuffham

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