Tag: Barclays

  • THE GOLDMAN SACHS AFFAIR: CORRUPTED JUSTICE, OR AN UNTOUCHABLE FINANCIAL SECTOR?

    Translated from the French by Tim Gupwell.

    The first hypothesis which comes to mind with regard to the American Justice Department’s decision on Friday not to prosecute the bank Goldman Sachs for its alleged role in the Subprime crisis, is of course of corruption at the very heart of the Department. The facts are well-established and eminently reprehensible: exploiting the trust of their best clients to sell them junk products; organizing bets and participating actively in these bets on complex securities which had been manipulated to ensure they were of the worst possible quality.

    Which begs the next question: “is … Read the rest

  • FORMER C.O.O. OF BARCLAYS, JERRY DEL MISSIER’S HEARING, BEFORE A BRITISH PARLIAMENTARY SELECT COMMISSION

    Translated from the French by Tim Gupwell

    Up to now in the LIBOR affair, the witness statements before the parliamentary select committee have essentially seen everyone lying to protect their own interests. The inevitable result is a sort of cacophony, compounded by strategy changes half-way through, which was particularly the case for Bob Diamond, former Chief Executive of Barclays, who one day sought to bring down with him Paul Tucker, Vice-Governor of the Bank of England, only to attempt the following day to absolve him of any responsibility, with the catastrophic result you can easily imagine.

    As for the officials, … Read the rest

  • THE FOUR YEARS NEEDED TO CREATE A SCANDAL

    Translated from the French by Tim Gupwell

    Over recent years you may have seen me carrying out extremely complex complications such as this: “it needed four years – between 1929 and 1933 – before any genuine measures were taken at the time of the Great Depression!” And it was this kind of calculation which led to my disenchanted musings– since nothing was being done – when I wondered on the 28th June whether I should put an end to the blog.

    And then, and in fact it was on this very same day, the second episode of the LIBOR … Read the rest

  • THE HEARING OF PAUL TUCKER, DEPUTY-GOVERNOR OF THE BANK OF ENGLAND, BEFORE THE BRITISH TREASURY SELECT COMMITTEE

    Translated from the French by Tim Gupwell

    Paul Tucker, Deputy Governor of the Bank of England, made a statement this afternoon before a British Treasury Select Committee. The reason for his presence today was that on the 4th July, before this same committee, Bob Diamond (who was the Chief Executive of Barclays until a few days ago) had hinted that he had been under pressure from Tucker for the bank he managed to submit lower figures for its inter-bank borrowings than the figures it was actually submitting. The figures in question were used at the time by the … Read the rest

  • 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 … Read the rest

  • 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 … Read the rest

  • 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 … Read the rest