Libor-Like Manipulation Possible in Other Benchmarks- Goldman’s Gensler to Investigate

Bloomberg writes today that authorities are scrutinizing other benchmarks and markets for signs of manipulation in the wake of the LIBOR scandal.
Don’t worry, Goldman’s own Gary Gensler is on the hunt…just as soon as he gets around to completing the going-on-5-year silver investigation supposedly being conducted by the CFTC, which was supposed to have been concluded by September.

 

The same lack of oversight that enabled traders to manipulate the London interbank offered rate plagues other benchmarks around the globe, according to a group of international securities regulators.

Fewer than half of the benchmark interest rates surveyed in the U.S., Europe and Asia were based on actual transactions, according to a confidential International Organization of Securities Commissions discussion paper obtained by Bloomberg News. Instead, the rates were calculated by methodologies that were unclear, not transparent and only rarely subject to specific regulatory standards or obligations, the group said.

Scrutiny of financial benchmarks has intensified since June, when Barclays Plc (BARC), the U.K.’s second-largest bank by assets, agreed to pay $460 million for its role in trying to manipulate interest rates. In a global probe that has ensnared banks including UBS AG (UBSN), Citigroup Inc. (C), Royal Bank of Scotland Plc and Deutsche Bank AG, investigators have focused on whether traders coordinated submissions to the survey-based rate to profit from derivatives positions.
Last week, IOSCO created a task force to develop policy guidance on how benchmarks should be compiled and regulated. The exercise, which is being led by Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, and Martin Wheatley, managing director of the U.K. Financial Services Authority, follows a similar effort to establish best practices for reporting oil prices.
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Comments

  1. Gary Gensler, ” Nutin here … hey who’s on American Idol?”
     

  2. Didn’t everyone get the news?  The CFTC has already decided to drop their 4 yrs+ long investigation into silver price suppression, as announced through their global mouth-piece, the Financial Times of London.  So, they’re off the hook…

  3. The fox will do an investigation inside the hen house.

  4. For CFTC investigations, please refer to the ‘geologic’ conversion chart for estimated completion timeframe…by the time they finish, you (and any guilty) parties will be long dead…

  5. Gensler is a pawn of the government and Wall St.  We are pawns as well.  I’m not diminishing the corrupt bums, of which Gensler is one, but lets face it.  We all are sheep to be shorn by the government, period.

  6. I’m sure that they’ll do their best to hide the manipulations since they are all corrupted. I think that the reason why the Libor scandal was discovered is because it became too obvious so they revealed it and then everyone thinks that they are the good guys.

  7. Reveling it means nothing when fines are likely 1/10 of the illegal profits. Life sentences are needed for fraud exceeding $1 million.

    • Life sentence, my patootie!  Where’s Vlad the Impaler when we need him?  A few applications of that would straighten out these bankster scumbags and their trained monkeys at the CFTC.
       

  8. The greatest manipulation of all … the one that necessitates the entire cascade of subsequent manipulations we’re ceaselessly encouraged to rather concentrate on … is the etherial conceptualization of ‘money’, as opposed to its physical realization.

    Money’s principal function isn’t as a mere ‘medium of trade’, but as a means to objectively estimate a ratio of quantities and/or qualities between different things that best exchange, given their particular relative supply-demand characteristics at any place or point in time.  In order to achieve that end, money itself must be fully subject to its own supply-demand factors, so as to ‘mesh its gearing’ to that of the things it’s juxtaposed to. This is why gold alone isn’t suitable. Without silver’s rational inter-relationship, there isn’t a competitive ratio to refine its proper ratio in the larger ‘spectrum’. Silver’s own ratio to gold, too, must be refined by comparison to the supply-demand forces of copper, which is why this monetary ‘triumvarate’ has stood for millennia. The three act in unison as a sort of ‘balance beam where their inter-related ratios suppress willful temptations to over or under estimate any of them and their further individual qualities of objective comparison.

    Money is a thing … NOT an ‘invention’. 

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