• LIBOR: WE AIN’T SEEN NOTHING YET

    Translated from the French by Tim Gupwell From the Financial Services Authority’s Final Notice of their decision, dated the 27th June, to impose an 85 million Pound fine on Barclays Bank (less a reduction of 30% for exemplary co-operation with the enquiry) due to their manipulation of the LIBOR interbank rates, two separate periods need to be distinguished. In the first period, which loosely spans the period from 2005 to 2007, rates were manipulated on trading floors by operators at a subordinate level; in the second period, which runs from 2007 to 2009 and which corresponds to the height of…

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  • REFRESHER COURSE: HOW AL CAPONE FELL

    Translated from the French by Tim Gupwell Idea association being an excellent means of investigation… here is a reminder of this article dating from 26th March 2010. Everybody knows the history of Al Capone, who was never caught by the American state for his racketeering activities but was brought down by an investigation for tax evasion. One also knows that the American banks have made life difficult for the authorities since they have attempted to put back a bit of order into a sector which has triggered an unprecedented crisis in the entire capitalist system. At the same time you…

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  • THOSE RESPONSIBLE FOR THE CRISIS WHO ARE RARELY TALKED ABOUT

    Translated from the French by Tim Gupwell The question of whether a debt contract can be considered as money is central to my book L’argent mode d’emploi (2009). I expose the violence exerted by Joseph Schumpeter (1883-1950), when he imposed the idea that such was the case, and I demonstrated the inanity of the pseudo-arguments that he advanced – employing phrases that often lacked any sense – to support the idea (p. 175 – 180). A debt contract is indeed another form of money according to Schumpeter, and its amount can be added to that of money in order to…

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  • GUILTY PARTIES WANTED !, by François Leclerc

    Guest post. Translated from the French by Tim Gupwell In accordance with the predictable script, the bond market is under pressure again. The cost of servicing Spanish and Italian debt has continued to increase as their financing plans move forward in little measured steps. The effect of all this is to place an additional burden on the budgets, undermining those measures which are intended to reduce the deficits. The statistical institutes INSEE (France), IFO (Germany) and ISTAT (Italy) all agree: Europe is sinking into a recession which they describe as ‘technical” in an attempt to make it sound innocuous, but…

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  • LIBOR: DELAYED INDIGNATION

    Translated from the French by Tim Gupwell The paradox of the 2008 ‘LIBOR scandal’ – in addition to its familiar ring in 2012 – is that, as I alluded to at the time and as I recalled a few days ago, the fraud was well-intentioned for once: the ‘philia’ of Aristotle, the good will exercised by everyone so that a common activity can be pursued – in this case the very existence of the financial system. Yesterday’s ‘surprise’ was that Paul Tucker, Vice-Governor of the Bank of England, was said to have advised Bob Diamond, who resigned yesterday from Barclays,…

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  • NUCLEAR RESTARTED IN JAPAN, by Asami Sato

    Guest post. Translated from the French by Tim Gupwell On Saturday the 16th June, the Prefecture of Fukui (in the West of Japan) officially gave its consent to the Prime Minister for two reactors at the Ohi nuclear power station to be restarted. The dates are set for the 8th July for reactor N°3 and the 24th July for Reactor N°4. So the ‘nuclear zero’ experiment will only have lasted two months. Apparently, the painful experience of Fukushima will have no impact on the habitual order of Japanese political life. No question meets with a clear answer anymore: extremely divergent…

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  • BARCLAYS BEFORE A BRITISH PARLIAMENTARY SELECT COMMITTEE

    Translated from the French by Tim Gupwell I watched the hearing of Bob Diamond live, who had resigned the day before from his post as Chief Executive of the British bank Barclays. Diamond was extremely polite but his tactics in response to the questions posed him were very skilful: the more brutally a British parliamentarian interrogated him, the more he highlighted in his answer the complicity that had previously bound them together, frequently resorting to the use of his interrogators’ first names in the answers he gave (playing on the fact that they would  be forced to pass this familiarity…

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  • THE MANIPULATION OF THE LIBOR

    Translated from the French by Tim Gupwell In my Friday morning video (in French), I said that when a pirate (Rupert Murdoch) does business with a ship wrecker (the City of London), it tends to weaken the entire system, and I went on to add that this is particularly the case when the population, which is observing all this from afar, starts to exhibit a certain degree of indignation. The LIBOR affair has been widely discussed for several days now, due to the 290 million pound fine imposed on the British bank Barclays. My reaction hitherto has been limited to…

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  • THIS SYSTEM IS ITS OWN WORST ENEMY, by François Leclerc

    Guest post. Translated from the French by Tim Gupwell In the little game of who won and who lost, what conclusions can be drawn from the recent European council? Interpretations differ widely: some highlight the German Government’s about-turn, who themselves retort that the essence of their position has been preserved intact; others congratulate Mario Monti for his skilful manoeuvring; while the French claim that the real winner is Europe itself, magnanimously playing the role of victor, and giving credence to the idea that the Germans gave in. With everybody trying to turn the situation to their advantage, where does the…

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  • THE WINDOWS MUST REMAIN CLOSED, by François Leclerc

    Guest post. Translated from the French by Tim Gupwell By rejecting the quartet’s plan, (which has, moreover, already been watered-down) before the summit has even been held, the German deputy foreign affairs minister, Michael Link has placed himself in the avant-garde of all those opposing any attempt at a compromise. The “iron chancellor’s” hard-line approach has not changed: political union first, but not yet, and possibly the rest after that. There is a risk that the only thing left of the elaborate construction, already proposed only in its broadest outlines (even for that of the banking union component) is the…

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