CNBC’s Rick Santelli has just called Ben Bernanke’s Senate testimony regarding LIBOR manipulation the ‘Smoking Gun’ the Fed was involved and manipulated rates.

Santelli stated:

The fed chairman and the e-mails partially in the journal today all talked about discussions that were known to the chairman. Right here, he said that the manipulation of rates was a little bit low by certain banks but they just wanted to show they were healthy during the crisis. Manipulation is manipulation!!!
People on the trading floor heard that!  They thought basically that’s the smoking gun, whether it is Geithner, Gensler, and Chairman Bernanke, they knew submissions were low!

What’s your definition of manipulation? If you murder your neighbor and it was an accident, is there not still a hearing? Is there not still a trial? …
Hhe didn’t really explain why there was no public disclosure of the problems they found in libor. Even more than public disclosure, the issue would be why have regulators — if regulators see things that aren’t right and manipulation even if there is a good reason and totally ignore it, why do we have regulators?

To clarify Mr. Chairman, you just admitted that banks submitted false rates during the financial crisis (AND THAT YOU WERE AWARE OF THIS FACT!!) in order to appear healthy during the crisis.
This is the same as a fast food burger flipper falsifying pay stubs to demonstrate he makes $50,000 weekly in order to afford a new crib in the Hamptons….just so his finances appear healthy to the lender of course.

Apparently falsifying financial documents is not considered a fraudulent felony if you’re a large bank or Central Bank?

  1. I’m laughing at this because  as 10,000,000 people were buying  overpriced McMansions with liar loans, the top  banker/lairs were getting and receiving loans with no more concern to the consequences of their actions than John G Citizen was when he signed his loan docs.  The mantra was —” If the bank approved the loan, they must know I can afford it”.  It turns out these same banks can’t afford the very loans they are making to each other and other  central banks.  No wonder that these goofy b****** made loans to unqualified borrowers. They were actively doing the same to each other.  Of course this subprime market is in the $500 trillion dollar range so there is nothing to worry about here.   LOL

  2. People.  It’s like complaining to your load shark that he’s fix’in the rates!  Show me the law they’re breaking, other than the paper that we’re using says Federal Reserve Note instead of U.S. Treasury Note.

    Let out a laugh and get down to the coin shop before the lid goes vertical

  3. The problem with these financial guys testifying before Congress is that there are no people in the government who understand this stuff well enough to know when it is not working or when people are cheating.  I guarantee you that if one of them ever testified and gave the full definition of what a “derivative” is, every member on that panel would have that deer-in-the-headlights look.  Cheating others who do not understand what it is that you are doing is easier than taking candy from a baby.  At least the baby screams when he is ripped off.

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