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LIBOR rigging: Difference between revisions
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There is also the odd spectre of the law of [[contract]] forming the backdrop to criminal culpability: usually, the rozzers will stay out of a contractual dispute even if fraud is alleged, preferring that to be a matter of civil loss and not one requiring the machinery of the state. LIBOR being primarily of interest to third parties to the “contract” those considerations are not present, but still one must apply contractual principles to contractual matters, and not criminal ones. | There is also the odd spectre of the law of [[contract]] forming the backdrop to criminal culpability: usually, the rozzers will stay out of a contractual dispute even if fraud is alleged, preferring that to be a matter of civil loss and not one requiring the machinery of the state. LIBOR being primarily of interest to third parties to the “contract” those considerations are not present, but still one must apply contractual principles to contractual matters, and not criminal ones. | ||
====Everyone was at it==== | |||
A fun game, if you have twenty minutes, is to google the names of the {{plainlink|https://en.wikipedia.org/wiki/Libor|Seventeen LIBOR panel banks}} to see if any of them were ''not'' somehow implicated in so-called “LIBOR rigging”. | |||
If you haven’t got twenty minutes, then the WSJ’s completely ''brilliant'' {{plainlink|https://graphics.wsj.com/libor-network/|spider network}} will give you the answer in an instant. | |||
''Everyone'' was at it. This means either (a) there was a collossal conspiracy at which everyone was trying to rip off the general public for personal gain and, since their efforts would naturally cancel each other out, probably failing or (b) ''this is how everyone understood to the LIBOR system to work''. It might not be edifying, but employees have fiduciary obligations to their shareholders, and if everyone acts according to those fiduciary obligations — or even their own personal self interests — the selfishness cancels itself out. This is ''exactly'' the logic of Adam Smith’s [[Free market|invisible hand]]. | |||
=== The “LIBOR Definition” === | === The “LIBOR Definition” === | ||