Labels

SUPPORT JULIAN ASSANGE

Sunday, November 2, 2014

Rampant financial crime in City of London eroding public trust - BoE

Rampant financial crime in City of London eroding public trust - BoE

Published time: October 28, 2014 19:58 
Edited time: October 29, 2014 00:05

The exterior of the headquarters of the Bank of England in London. (AFP Photo)
The exterior of the headquarters of the Bank of England in London. (AF
In her first public address since adopting the position of BoE Deputy Governor, Nemet Minouche Shafik denounced the actions of UK traders in foreign exchange, currencies and bonds markets, warning financial misconduct in these sectors goes well beyond a few rogue financiers.A top Bank of England (BoE) official warns widespread financial crime in the City of London is eroding public trust. The BoE’s criticism surfaced as it launched a review to tackle market manipulation.
Referencing LIBOR riggers’ behavior as unacceptable, she suggested fines for such fraudulent activity were inadequate and signified “salt rubbed into the wounds to public confidence in financial markets.”
View image on Flickr website
LIBOR (London Interbank Offered Rate) currently determines the cost of up to $350 trillion worth of global financial products. While the 21st century has been littered with financial scandals, Libor rigging by leading global banks has been dubbed the most flagrant in modern history.

Approximately £4 billion worth of fines have been issued for the manipulation of core benchmark rates to date, and the City is expecting further fines for the rigging of currency markets to be publicly announced in November.
(AFP Photo/DOMINIQUE FAGET)
(AFP Photo/DOMINIQUE FAGET)

Speaking at the London School of Economics (LSE) on Monday, Shafik warned Britain’s financial system is rigged and characterized by disproportionate rewards.
“When people read of malpractice in financial markets, of trading profits being claimed through manipulation, collusion or dishonesty, they naturally wonder if they are one of the people who have been wronged,” she said.
Joel Benjamin, a leading researcher and campaigner at UK ethical finance group Move Your Money is investigating the impact of LIBOR rigging on UK citizens and stakeholders. Benjamin warns such rate manipulation is anything but a victimless crime, and those who have suffered most in its wake remain largely uncompensated.
“The real victims of LIBOR are pension funds, SME's fraudulently mis-sold interest rate swaps, public authorities with cash investments in the banks, and LOBO loans and PFI contracts where interest repayments increased as LIBOR was rigged lower by the banks,” he told RT on Tuesday.

‘Fix the barrel - to get rid of the bad apples’

Shafik's address at LSE accompanied the launch of the BOE's long-awaited review of fixed income, foreign exchange and commodities markets, collectively termed FICC. The results of the Bank's review, first announced by Chancellor George Osborne in June, are expected to surface following the general election in May 2015.
Commenting on the implications of rate rigging, Osborne warned on Monday that financial integrity is a vital prerequisite for a thriving British economy.
But Benjamin argues Osborne has done little to help small businesses and local authorities that have suffered as a result of such financial crimes.
Britain's Chancellor of the Exchequor, George Osborne. (AFP Photo)
Britain's Chancellor of the Exchequor, George Osborne. (AFP Photo)

“Instead of investigating victims of LIBOR fraud and pursuing compensation, George Osborne has handed LIBOR fines to armed forces charities. LIBOR fines should be going to SMEs defrauded by the banks and to fund public services ravaged by austerity cuts borne of the bank bailouts,” he said.
Reflecting on questionable aspects of Britain's financial sector, the BoE’s deputy governor said the tired argument that financial misconduct relates to the behavior of a “few bad apples” is “no longer credible.”Shafik suggested UK financial regulation lacks efficacy and robustness, and a regulatory overhaul is needed to “fix the barrel and to get rid of the bad apples.”
Post a Comment

assange



At midday on Friday 5 February, 2016 Julian Assange, John Jones QC, Melinda Taylor, Jennifer Robinson and Baltasar Garzon will be speaking at a press conference at the Frontline Club on the decision made by the UN Working Group on Arbitrary Detention on the Assange case.

xmas





the way we live

MAN


THE ENTIRE 14:02' INTERVIEW IS AVAILABLE AT

RC



info@exopoliticsportugal.com

BJ 2 FEV


http://benjaminfulfordtranslations.blogspot.pt/


UPDATES ON THURSDAY MORNINGS

AT 08:00h UTC


By choosing to educate ourselves and to spread the word, we can and will build a brighter future.

bj


Report 26:01:2015

BRAZILIAN

CHINESE

CROATIAN

CZECK

ENGLISH

FRENCH

GREEK

GERMAN

ITALIAN

JAPANESE

PORTUGUESE

SPANISH

UPDATES ON THURSDAY MORNINGS

AT 08:00 H GMT


BENJAMIN FULFORD -- jan 19





UPDATES ON THURSDAY MORNINGS

AT 08:00 H GMT

PressTV News Videos