Scandal Wall Street scandal of all.

Just when you think that Wall Street does not sink under any - on any lot of trust of the people to spread the miasma of the human economy, and gave birth Partiers tea and occupiers and the nature of the theory of conspiracy. all; Greedy when it did, then damage to the lives of millions of Americans, causing taxpayers to shell out billions. (This part has been paid), even as its executives to make more money than ever before; When political power is large (through the campaign) has cut a lot of the Dodd-Frank is supposed to rein it in and called the "Volcker" has been sold as the milder of the Glass Steagall old. used to separate investment banking from commercial - yes, just when you think that the road has to go even deeper level of greed and corruption, public-BE-damned will be revealed.

Sit down and hold on to your chair.

The most basic of services, banks do? Borrow and lend it out. You put your savings in a bank holds in trust and the bank agreed to pay you for it. Or do you recover money from a bank and you agree to pay interest on the bank.

This interest rate is determined, however. We believe that the banking system is set up as expected at today's best guess about the future value of money.

But suppose that our assumption is wrong. Suppose that the bank will manage the interest rate so that they can bet with money you borrowed or returned to them - bet that will pay off big for them because they have inside information about what the market expected. The fact that they are not sharing with you.

The massive breach of trust of the people. And it was like to tear out nearly universe - trillions of dollars that you and I and others question would otherwise have received or recorded in the lending and borrowing money we receive will be in order. banker It is a violation of any of the trust that we have witnessed it look like child's play by comparison.

Sad to say there is reason to believe this was happening, or something very much like each other. This is an emerging scandal over "LIBOR" (short for "London interbank offered rate") is all about.

LIBOR is the benchmark for millions of dollars of the loans - mortgage loans small business loans, personal loans. It was compiled by the rate at which major banks said they had borrowed.

The scandal was limited to the Barclay's Bank in London with a large, recently paid $ 453 million to U.S. regulators, Bank of England, with a layer of management has been forced to resign, and the terms of trade. 'Give me the picture of the way easily. Their colleagues, their genuine interest in drilling in order to make the big bucks (Robert Diamond, Jr., CEO, Barclays was forced to resign, said. E-mail him. "Physically sick" - perhaps because they are so patently exposed to corruption.).

But Wall Street was almost certainly involved in the action as well, including the suspect, as usual - JPMorgan Chase, Citigroup and Bank of America - because banks are involved in determining the rate of LIBOR and Barclay's. not without a steamer. Participation of their witting.

In fact, the defense has been at Barclays Bank LIBOR is fixed in the same way and for the same reason. The Barclay is a "cooperative" (ie, providing evidence about the curse, large banks, etc.) with the Ministry of Justice and regulatory agencies, etc., to avoid a penalty action or prosecution for criminal purposes and fireworks. just begun.

There are really two different LIBOR scandal. One has to do with the timing, just before the financial year 2007, when Barclays and other banks submitted fake LIBOR rates lower than banks. 'Borrowing costs incurred in order to disguise how much trouble they are in. This is not good enough. Are known, then the action may be taken earlier to minimize the impact of the financial crisis at the close of 2008.

But the scandal, the other is even worse. It involves a more common practice was started about 2005 and continued until - who knows? It may still happen - to cook up LIBOR necessary to ensure betting bank. In derivatives, it is profitable.

This is a huge level of internal trade. It has been a banker, and the rest of us - have they ever used to make their bets - the loser, and chumps.

What to do about it other than hope that the Ministry of Justice and other regulatory agencies impose fines and criminal sanctions, and hard to hold the executive accountable?

When it comes to Wall Street and the financial sector in general, most of us suffer from fatigue, combined with the overwhelming evil cynicism that nothing will ever remain true to stop the violation of these roads. too powerful. But the fatigue and cynicism are self-fulfillment; What to do if we surrender to them.

Choice will not loosen and stand in need of a glass. Steagall-reinstituted. The largest banks were destroyed. The question is whether the unfolding scandal LIBOR ammunition and enough power to get the job done.

According to this article: http://www.huffingtonpost.com/robert-reich/libor-wall-street_b_1656665.html?utm_hp_ref=business.