International Banking Actuality Part 37 - Libor Fallout

  • Aired:  07/18/12
  •  | Views: 50,663

Banking titans Rich Ricci and Bob Diamond are implicated in the Libor financial scandal, but an eighth-generation Hoare remains innocent of the rampant rate rigging. (4:07)

IT'S ACTUALLY JUST 16 LONDON LUNCH BUDDIES.

(LAUGHTER) JUST OUT OF CURIOSITY, WHAT WOULD PUBLIC E-MAILS LOOK LIKE WITH A SCHEME SUCH AS THIS?

>> TRADERS E-MAILING EACH OTHER SAYING "HEY, I REALLY NEED YOU

TO... I REALLY NEED MY RATES TO COME IN AT A CERTAIN RATE.

IF IT DOESN'T HAPPEN I'M GOING TO GET KILLED." (LAUGHTER)

>> Jon: SO THESE E-MAILS,

TRADERS FOR THESE BANKS WOULD CALL UP THE BANK OFFICIAL CHARGED WITH REPORTING THEIR

BANK'S LIBOR BORROWING RATE AND ASK THESE INDIVIDUALS TO LIE.

JUST A LITTLE.

ABOUT THE RATE.

WHAT DO E-MAILS LOOK LIKE POST-LYE.

>> QUOTE, DUDE, I OWE YOU BIG TIME.

COME OVER AFTER WORK AND I'M OPENING A BOTTLE OF BOLLINGER.

>>"

>> WHEN I WRITE A BOOK ABOUT THIS YOUR NAME WILL BE IN GOLDEN LETTERS.

THE REPLY FROM LONDON?

"I WOULD PREFER THIS NOT BE IN ANY BOOK." (APPLAUSE)

>> Jon: HOW WOULD YOU FEEL ABOUT IT BEING IN AN INDICTMENT?

(LAUGHTER) WHO WHO IS RUNNING THESE BANKS?

HOW DOES THIS HAPPEN?

>> RICH RICHIE, HE IS PROBABLY THE MOST SENIOR PERSON AT BARCLAYS.

BOB DIMON FIRED AMID THE LIBOR SCANDAL.

>> Jon: ARE YOU (BLEEP)ING KIDDING ME?

NO.

RICH RICHIE?

AND MR. DIAMOND?

(LAUGHTER) IS THIS REAL OR A DICKENS NOVEL?

HERE'S HOW WEIRD THIS STORY IS.

ONE OF THE FEW GOOD GUYS IN THE STORY IS A BANKER WHO DIDN'T PARTICIPATE IN THE RIGGING OF RATES.

HIS NAME?

ALEXANDER HOARE.

(LAUGHTER) HE'S A SCION OF LONDON'S ESTEEM HOARE AND COMPANY.

THAT'S RIGHT, FOLKS.

EVEN THE HOARES ARE DISGUSTED.

AN EIGHTH-GENERATION HOARE FROM A LONG LINE OF LONDON HOARES.

>> EARLIER WE TOLD YOU THE THREE THINGS WE'D ALL HEARD ABOUT THAT

WERE KILLING OUR ECONOMY WERE,

NUMBER ONE OVERREGULATION.

>> THERE'S NOT VERY MUCH OVERSIGHT OVER HOW THE BANKS SUBMIT THAT DATA.

>> Jon: OKAY, SO NOT OVERREGULATION IN THIS CASE.

SOUNDS A LITTLE MORE LIKE UNDERREGULATION.

SO IT MUST BE THE NUMBER-TWO REASON, THE UNCERTAINTY IN THINGS LIKE OBAMACARE AND

DODD-FRANK THAT'S KILLING US.

>> THEY'RE MONK KISS AROUND WITH LIBOR.

I TALKED TO ONE FRIEND WHO WORKS ON WALL STREET HE SAID "THIS IS

LIKE FINDING OUT THE WHOLE WORLD IS BUILT ON QUICKSAND."

>> Jon: OKAY, SO AT LEAST NOW WE KNOW WHAT IT'S BUILT ON.

(LAUGHTER) THAT'S A TYPE OF CERTAINTY SO AN UNREGULATED FREE MARKET CAN ALSO

APPARENTLY CREATE UNCERTAINTY AND SOME BANKERS MADE A FEW HUNDREDS OF MILLIONS OF DOLLARS

BETWEEN EACH OTHER RIGGING THEIR BESTS ON INTEREST RATES AND KEPT INTEREST RATES ARTIFICIALLY LOW

DURING THE FINANCIAL CRISIS.

IT STILL DOESN'T EXCUSE ECONOMY-WRECKING REASON NUMBER THREE-- PUBLIC SECTOR UNIONS AND

THE DAMAGE THEY CAUSE WITH THEIR MASSIVE PENSION DEMANDS.

>> THE VICTIMS IN THIS WHATEVER YOU WANT TO CALL IT ARE THE MUNICIPALITIES AND THE CITIES

AND ANYBODY WHO GOT PAID LESS THAN A FAIR MARKET INTEREST RATE ON BONDS

>> OH, RIGHT.

(LAUGHTER) THE PUBLIC SECTOR PENSIONS ARE UNDERFUNDED IN PART BECAUSE THE

BONDS THEY OWN ARE PAYING TOO LOW A YIELD THANKS TO 16 SUITED TURD MONKEYS IN LONDON.

(LAUGHTER)

>> THE CITY OF BALTIMORE AND THE FIREFIGHTERS AND POLICE UNION OF

NEW BRITAIN, CONNECTICUT, HAVE ALREADY FILED A LAWSUIT YOU'RE TALKING ABOUT ONE OR TWO MILLION

DOLLARS, THAT'S A FIRE COMPANY.

>> Jon: YEAH, BUT WHEN YOU TAKE OUT A MORTGAGE TO REBUILD YOUR BURNED-DOWN HOUSE

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