16 Big Banks Sued By U.S. Federal Deposit Insurance Corp. For Rigging Libor
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[16 Big Banks Sued By U.S. Federal Deposit Insurance Corp. For Rigging Libor]
[Reporter News:] Source: LYBIO.net
A US regulator has sued sixteen banks for manipulating a key global interest rate, the Federal Deposit Insurance Corporation has accused them of conspiring to keep the rate low to enrich themselves.
The banks which include Bank of America, Citigroup and JP Morgan Chase are among the world’s largest. A civil lawsuit has been filed in a New York federal court.
Barclays, HSBC and the Royal Bank of Scotland are some of the other banks named in the lawsuits.
The bank’s rigged the London interbank offered rate called the Libor from August to some 2007 to mid 2011.
The manipulation caused substantial losses to nearly 40 US banks which were shut down during and after the 2008 financial crisis.
Libor has affected trillions of dollars in contracts around the world, including mortgages, bonds and consumer loans.
Let’s go to Missouri and talk to Dean Henderson author of Big Oil And Their Bankers. Welcome to the program sir. First of all Mr. Henderson, just how likely can action be taken against these banks?
Well, I mean, it’s a good thing I think, I mean it’s a good sign, there’s some talk at the European Union, they are probably going to do the same thing next month, the regulators in the EU.
It is the biggest American Anglo and Swiss Banks were talking about – it’s the head of the snake. The banks basically ripped off our government at least for 900 billion dollars. Sell a gun to our head back in 2008.
Demanded money and then imposed austerity on the middle-class
and the poor in this country to try to make up the difference.
So it’s a good sign but you know you get a sense it’s just a band-aid and you know, still the bottom line is the Justice Department needs to prosecute some of these bankers under criminal charges, I think.
The fact that nearly 40 US Banks – well they suffered substantial losses and they were shut down, the fact that can compensation be made for these banks? Can damages be mended?
Well I think, you know, the bigger question is – is the government gonna handle this right way; for example Washington Mutual, one of the banks, you know, that’s being – that went into arrears is now owned by JP Morgan Chase, so are they gonna find JP Morgan Chase and give the money to Washington Mutual and
basically in essence give it right back to JP Morgan Chase, or is this gonna cover some of the government, you know, shortfall that we experienced bailing out these banks. So I think that’s the important thing. And uh, and again I think we need to get on with the criminal charges at this point.
From now on, what precautionary measures can be taken to prevent similar fraud from happening in the future?
Well you know we need to repeal Glass–Steagall, our – reinstate, excuse me, Glass–Steagall, I mean, this is repealed under the Clinton Administration, it allowed investment banks, and big deposit banks and merchant banks to all do the same sort of thing, sort of merger in all those different areas and we need to reinstate Glass–Steagall and we need to re-regulated the banking sector and we need a get rid of this notion; Too Big To Fail and you know, basically if you make a mistake in the marketplace let’s be good capitalists and let you fail.
[Reporter News:] Source: LYBIO.net
Alright Dean Henderson author of Big Oil And Their Bankers from Missouri thanks you for joining us, Sir.
16 Big Banks Sued By U.S. Federal Deposit Insurance Corp. For Rigging Libor. The banks basically ripped off our government at least for 900 billion dollars. Sell a gun to our head back in 2008. News Transcript, Dialogue, Remarks, Saying, Quotes, Words And Text.