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Matt Taibbi – Eliot Spitzer – Libor Scandal – Lie More – Dennis Kelleher – Faking Credit Scores – It’s Over For The Banking Cabal

Matt Taibbi – Eliot Spitzer – Libor Scandal – Lie More – Dennis Kelleher – Faking Credit Scores – It’s Over For The Banking Cabal

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[Matt Taibbi – Eliot Spitzer – Libor Scandal – Lie More – Dennis Kelleher – Faking Credit Scores – It’s Over For The Banking Cabal]

[Eliot Laurence Spitzer (June 10, 1959)] Source: LYBIO.net
Matt you have said as the headline I’ve just quoted that we should be outraged, screaming, going nuts over this, this is the mega scandal of maga scandals – why and why are you so outraged?

[Matthew C. “Matt” Taibbi (March 2, 1970)]
Oh, well Libor is like the sun at the center of the financial universe, if they’re monkeying around with Libor, and I’ve talked to one friend who works on Wall street he said, this is like finding out that the whole world is built on quicksand because Libor is in everything, it’s in mortgages, it’s in credit cards, it’s in all kinds of investments that are tied up municipalities, communities, so – what – if they play with this rate it it effects everything in the world basically. And this goes far beyond any corruption scandal we have.

[Eliot Spitzer] Source: LYBIO.net
Give us – give us a quick overview of what is it they did? Explain it to folks who – A Libor is like a foreign language

[Matt Taibbi]
Right

[Eliot Spitzer]
You know the prime rate, maybe we know? We see a credit card rate on the statement we get. What’s Libor? Who is it – who sets it? What have they been doing, to do this?

[Matt Taibbi]
Libor is basically the rate at which banks charge each other to lend to each other. Ah so it’s essentially, every morning a committee calls up each of the 16 banks in the committee and they ask them how much they have been charging each other to borrow. And they report a number and what they have been doing is lying about how much they’ve been charging. They’ve been giving lower numbers or sometimes higher actually – they have been tweaking it both directions. But essentially they have been faking their credit scores. That’s really what it comes down to.

[Eliot Spitzer]
Okay, now I’m gonna come back to the mechanics of this in a minute, cause what’s important in terms of how many other people almost necessarily were involved?

[Matt Taibbi]
Right

[Eliot Spitzer]
This can’t be one bank doing it?

[Matt Taibbi]
Right

[Eliot Spitzer]
Because of the way they do it. The import of this, as you just said it, every interest rate in the world comes back to Libor – you futs around with Libor or – your affecting hundreds of trillions of dollars everyday

[Matt Taibbi]
Right

[Eliot Spitzer]
Dennis – Matt is – you know – I jump out of my skin when people know when I’m upset – Matt this is exuberant – Dennis do you share the sense of outrage, that if they’re doing this, this is corruption based on corruption based on corruption?

[Dennis Kelleher – President & CEO, Better Markets, INC.]
Ah if anything it’s an understatement, Eliot.

[Eliot Spitzer]
I’m not prone to understatements so explain to me why that – why that is?

[Dennis Kelleher] Source: LYBIO.net
You know, nobody should be surprised that we have yet another corruption scandal being done by one of these global too big to fail banks. This is their business model. They are based on and have been based on for a long time of making as much money as quickly as possible in any way that they can not get caught. When they would deregulate it in the 80 – in the early 2000’s it wasn’t just that the regulators walked off the beat, they were given the green light they there were basically no rules applied to them and they could do whatever they want about 7 – took them about seven years and they caused the biggest financial crisis since the crash of 1929 and gave us the worse economy since the Great Depression. The same people that did that, the same executives, the same business model that crashed the entire financial system in 08′ are still running these banks. You know, Diamond didn’t just get to Barclays he was there throughout the run up and the good times through the scandal. And we’re facing this scandal now, and there’s gonna be more, to the extent that anybody keeps looking because the entire business model is corrupt and rotten to its core.

[Eliot Spitzer]
You know, Dennis, I just wanna – for folks who don’t know who you are and your resume. You were one of the senior – you were a partner in one of the biggest law firms in the world that represented these guys and I don’t say that in anything with anything other than praise, you worked with them, you’ve seen them, you understand them, you’re not some crazy guy off the street we just dragged in to spew venom at them, you have worked with them and understand their thinking, their business practices and everything else because you just gave a pretty serious and I think absolutely on the point indictment of what is wrong with our failure to impose any accountability, virtually nobody has been chased out of the business despite the massive unbelievably expantive corruption we’ve seen month after month – Matt I wanna come back to you – cause you said something critically important the number 16 – 16 banks get together to create and set Libor.

[Matt Taibbi]
Right

[Eliot Spitzer]
So one stray out-liar wouldn’t shift it because of the they way they do it, right? They take the top four the bottom four and toss them out – in order for them to affect the Libor a lot of people have to be involved?

[Matt Taibbi]
Right ya, every morning the British Bankers Association calls up all 16 of these banks, they ask them for a number, ah to report a number, they throw out the four highest numbers and the four lowest numbers. So that means necessarily that it can’t just be Barclays

[Eliot Spitzer]
That’s right

[Matt Taibbi]
And the World Bank of Scotland, in fact, it’s probably can’t even be four banks, or five banks, really in the end its probably gonna come out that it’s gonna be all of them were involved in this.

[Eliot Spitzer]
Right

[Matt Taibbi]
And that’s what’s critical for people to understand that this is a Cartel style corruption, it’s not just one Barclays.

[Eliot Spitzer] Source: LYBIO.net
You’ve written recently about how mob behaviour infiltrated Wall Street

[Matt Taibbi]
Right

[Eliot Spitzer]
I rarely do this – I’m gonna disagree with you a little bit – I think the mob learned from Wall Street

[Matt Taibbi]
(laughs)

[Eliot Spitzer]
Not vice versus – I think the mob – seriously – I think the mob looked at the business practices whether it’s Rockefeller ‘the oil trust’ or Wall Street, and they said Cartels are good better than hitting people over the head with a baseball

[Matt Taibbi]
Absolutely

[Eliot Spitzer]
Anyway your metaphor is perfectly — Dennis you’ve seen these markets do you agree with Matt this has got to be expantive, this is a Cartel it runs certainly beyond the UBS, RBC and Barclays the three that we know of having reached agreement so far.

[Dennis Kelleher]
I think history has so far proved that it’s not that common that it’s an one off example where a bank kind of goes crazy and does something by itself to essentially try to take advantage of or manipulate, or rip off it’s peers, what they historically do, we just saw this in its FX market, I’m sorry the Foreign Exchange market, where were manipulating what they would charging their customers, and it’s an important lesson that you know gets spread out over many months, it wasn’t a crisis that reached a crescendo like this. But in that market – even a black rock was reported that it got ripped off quite significantly and Black Rock is one of the most sophisticated investors in the world and if Black Rock and get ripped off and the Foreign Exchange market as reported, then anybody can, that’s – the problem with this, it goes back to the core, I tell people this is a scandal of Libor, this is a scandal about the business model of these banks which is actually LIE-MORE

[All]
(laughs)

[Dennis Kelleher]
LIE – LIE MORE

[Eliot Spitzer]
I like that, that’s good.

[Dennis Kelleher]
That’s – that’s what’s going on here. They will do almost anything. Look, Bob Diamond at the head of Barclays said: as you said at the top of the story: umm Eliot: ‘that’s it time to stop looking at the Banks we need to move on, remorse is over, no investigation, there’s nothing to see here.’ He sounds exactly like another Diamond – the Diamond in the U.S. Jamie Dimon saying the same thing.

[Eliot Spitzer] Source: LYBIO.net
More about him later in the show.

[Dennis Kelleher]
These guys

[Eliot Spitzer]
Your exactly right

[Dennis Kelleher]
Ya, but these guys are all trying to say: “Don’t look into us, we didn’t do anything wrong, we didn’t have something to do with it.” Like – move on, move on, move on. If anybody stops for a moment and seriously investigates what these banks did and the run up to the crisis, and after the crisis, we’ll see this day after day after day because corruption is at the core. Lie More is what they done. Lie More is what they do. Wall Street is a high crime area. We need to send the cops in and nobody wants to do that.

[Eliot Spitzer]
Well we’ll hopefully change that – Matt you said something at the top and you you’ve said this in your blog posting that the public isn’t outraged

[Matt Taibbi]
Right

[Eliot Spitzer]
We’re following Tom Cruise’s divorce rather than something that is perhaps the center piece of the biggest corruption in Wall Street in many many years – why – I mean this is sociology crisis, why is that?

[Matt Taibbi]
I think it has to do with a lot of things, 1) Libor is incredibly complicated, its difficult to explain to people on Television what it is

[Eliot Spitzer] Source: LYBIO.net
You just did it great, I get it now

[Matt Taibbi]
Right

[Eliot Spitzer]
I didn’t understand it before

[Matt Taibbi]
Well right people it’s tough it takes more than 10 seconds –

[Eliot Spitzer]
Right

[Matt Taibbi]
That that’s one problem but I think its also tough for people wrap their heads around

[Eliot Spitzer]
Right

[Matt Taibbi]
The scale of this thing, I mean, this is way bigger than any corruption scandal –

[Eliot Spitzer]
Right

[Matt Taibbi]
– that’s come out since 2008 this this the implications of this is so awesome that I think people are so reluctant to take it in yet.

[Eliot Spitzer]
I think there is also a reality that Libor is one level below what people ordinarily deal with

[Matt Taibbi] Source: LYBIO.net
Right

[Eliot Spitzer]
People in business know about Libor, base borrowing and the interest rate is pegged to Libor and I think for most folks they don’t really see Libor as a day to day part of their lives the way they do some of the other scabs. Dennis

[Dennis Kelleher]
But Eliot –

[Eliot Spitzer]
Yes sir

[Dennis Kelleher]
I just was gonna say – Matt whose done just fabulous reporting, if anybody wants to know about staying on top of what’s going on, you need to read Matt. And he asked the exact right question, which is: “Why is nobody freaking out about the Libor Banking Scandal?” And the answer to that question really is: cause the corruption in our – they are really not banks they are finance and trading companies, lets call them what they are, they hide behind the label banks, but they’re not really banks, but what the – the corruption behind their business model has pervaded the political arena as well. And the reason nobody is freaking out is because unlike in the U.K. where there is actually an Opposition Party who is actually causing a rawkus and surprisingly the press and Matt talk about this to, the Press has really turned up the heat and you’ll notice the crazy leftist socialist rag called the Financial Times

[Eliot Spitzer]
Right

[Dennis Kelleher] Source: LYBIO.net
Last Friday said that what we probably need is to wipe out this entire generation of so called banking leaders who apparently have no ethics or integrity and I’m not talking about all banks or all financial – this is the biggest to big to fail banks – that’s where the corruption is.

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Matt Taibbi – Eliot Spitzer – Libor Scandal – Lie More – Dennis Kelleher – Faking Credit Scores – It’s Over For The Banking Cabal. I tell people this is a scandal of Libor, this is a scandal about the business model of these banks which is actually LIE-MORE. Complete Full Transcript, Dialogue, Remarks, Saying, Quotes, Words And Text.