UBS to pay $545 million to settle U.S. investigations into role in manipulating currency and interest rates

For those who don’t remember the massive (and we mean massive) LIBOR manipulation scandal from a few years back (the reason UBS is now paying a fine) here’s a short video explaining what essentially went on.

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Bank of England Drops a Bombshell on Parliament: It Shredded Its Crisis Era Records

No reason to keep records of what happened at one of the world’s most powerful central banks during the height of the 2008 Crash. Nothing important to know there. No reason to look back and remember what worked and what didn’t. No reason to keep the evidence.

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Carnival Against Capitalism in London, Should Be Against “Crony Capitalism.”

People are chaining themselves to barricades and waving red flags in the streets of London in protest of the G8 talks. The protest has been called a “carnival against capitalism.” Sadly these folks do not understand the vital difference between “capitalism” which is voluntary and provides opportunity for those not blessed with access to the modern aristocracy, and “crony capitalism” where the state is hijacked by the powerful to line their pockets and consolidate power.

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Taibbi: Everything Is Rigged: The Biggest Price-Fixing Scandal Ever

Another must read article from Matt Taibbi. Yes, Taibbi still won’t go after the Federal Reserve and the biggest fixer club of them all, the FOMC at the Federal Reserve. But he has done some excellent work over the past 5 years exposing the inner workings of a financial system which is deeply flawed. (To be kind.)

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EU Hedge Fund Manager Bonus Caps May Actually Make Things Worse.

Anyone who has read us for very long knows that we give bankers a hard time, often. The financial industry, especially the big banks, is rife with crony capitalism. The big banks are arguably the biggest crony capitalists of them all, and the corruption which comes with a Wall Street/Washington DC axis must be dealt with. It is vital for the future of our economy. Ending the Fed would be a good start.

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Another Absolute Must Read from Matt Taibbi : Gangster Bankers

Too big to fail and too big to jail are essentially the same sort of crap, with different smells. In both phenomena recklessness is rewarded  and broader society is made to pay in obvious and not so obvious ways.

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Goldman Sachs Takes Over the Bank of England

Technically one of their alums is taking over the Bank of England, Mark Carney, but it is pretty clear that the “vampire squid” now holds sway over nearly the entire European banking system.

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Libor Scandal: Massive Fraud at a Fundamental Level, Even Calls for the Jailing of Bankers

First, what is Libor or LIBOR?

It is the London Interbank Offered Rate. The rate at which an individual Contributor Panel bank could borrow funds, were it to do so by asking for and then accepting inter-bank offers in reasonable market size, just prior to 11.00 London time.

In short it’s the rate at which banks can get money from other banks just before lunchtime in London.

It sets a benchmark for most of the world’s derivative markets which trade in various currencies.

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Will Goldman Sachs Soon Have One of its Own as the Head of the Bank of England?

Goldman’s conquest of Europe continues. This morning comes word that Jim O’Neil, Goldman Sachs Asset Management Chairman, is in the running for BOE head.

He joins Mark Carney, current head of Canada’s central bank, and Goldman alum, as a contender.

Government Sachs is no joke. They have huge exposure to all sorts of financial nastiness. Might as well head off any trouble right at the source.

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