Thursday, 28 June 2012

Barclays caught manipulating interest rates

Barclays has just been find $450 million for attempting to manipulate a key market interest - LIBOR. This is the rate that determines many other rates including those on credit cards fees, government bonds, and corporate loans.

How did the headman at the Bank - Bob Diamond- respond when he had to acknowledge the appalling misbehaviour of senior management?

"I am sorry some people acted in a manner not consistent with our culture and values."

What exactly is the culture in Barclays? What are the values of the Bank. If asked, Mr. Diamond would probably puff out his chest and go through a litany of nouns; honesty, integrity, probity, trustworthiness and truthfulness... and so on...

However the track record suggests that the bank operates by only one principle - greed. Mr. Diamond can spin this story as much as he likes. No one seriously believes that Barclays is anything more than a cabal of ravenous bankers trying to screw every penny it can from its customers.

Despite the scandal and the scathing judgement from regulators, Bob Diamond will be keeping his job. Is there any accountability at Barclays? Is Bob man enough to stand up and take responsibility? Is he ready to take the long walk in order to answer for the degenerate behaviour of the bank while he was the man in charge?

No, no, no....personal accountability isn't valued in Barclays. It isn't part of the corporate culture. Large unmerited pay packages are part of the Barclays corporate infrastructure. Last Year, Bob Diamond walked away with a £25 million pay packet.


ernie said...

Look this isn't just a question of him resigning. This investigation turns up what is clearly fraudulent activity, the rigging of markets to gain money, which by definition must come from someone else's pocket. He (and all the others involved) must be put on trial. Only when the filthy stables now known as our high street banks are cleared out will be have a hope of building something back up

Stevie b. said...

Just seen Angela Knight of the BBA on Channel 4 news. As usual - and being well-versed in trying to defend the indefensible - an unctuous, "not us, gov", holier-than-thou performance of a woman squirming in denial. No wonder the banks are in big trouble - again. If the only way to see the back of Angela is for the banks to fail and share and bondholders to lose, then bring it on!

And the mighty, big Bob appears to have gone into hiding. Pathetic.
They should both resign and hang on to the shred of dignity such resignations would bring.

Kitz said...

The only way Diamond and his cohorts will go to jail is if they refuse to pay council tax .
Isn't Tony Blair on the board of that other nest of vipers
J P Morgan . Nice to be able to call in favours.

Electro-Kevin said...

I know that Barclaycard are not the same company.

I'm going to rant anyway.

I was subject to a credit card fraud over a year ago. When Barclaycard thought it was me at fault for failing to pay my bill their charges racked up at hundreds of pounds a time.

The charges reached thousands.

When they realised it was their fault the redress was £100 goodwill - this despite the fact that I'd missed out on a good mortgage offer, very nearly ended up with bailiffs on my door and was unable to sort out other credit card bills.

I felt that he redress was inadequate and reported the facts to the Financial Ombudsman's Service.

They found in favour of Barclaycard.

The £100 didn't even cover my postage and telephone bills - let alone three subject access requests, excessive interest rates and a lot of stress.

In the 1970s it was the miners and ship builders who were the bogey men - I don't recall any of them being rich, they were simply after a fair deal.

The banking sector's greed and dishonesty is in another league altogether - and it has brought the western economies to the brink like no other.

What are the Tories going to do about it ?

Alice Cook said...

A sorry tale Kevin, but you were dealing with Barclays.

Mortgage News said...
This comment has been removed by a blog administrator.
Electro-Kevin said...

My point is, Alice - the establishment (especially the regulatory and political one) are cowed by the banking industry.

Electro-Kevin said...

The 1970s abuses and excesses which brought us to the brink were by unionists and their members paid a grave price. It has to be said that all those individuals aspired to was double-glazing, central heating and a holiday in the sun every year.

The banking sector bend the public over (as they did me on my credit card and on my police pension)

The bankers help to bring the country to the point of bankruptcy - they celebrate in hot tubs of Bollinger.

The excesses are of a far higher order than the unions ever involved themselves in.

So what are the Tories going to do about it ?

Is this a class issue ?

That is my question.

Electro-Kevin said...

Contrast the palty £100 I get if the bank gets it wrong to the thousands I have to pay them if I get it wrong.

With the system bent in their favour like this how can any banker fail ?

That they HAVE failed - despite adding systematic fiddling to those outrageous and legal advantages already available - shows what a bunch of overpaid wankers they really are.