Bitcoin Forum

Economy => Economics => Topic started by: chsados on July 02, 2012, 11:00:10 PM



Title: Barclays: Yet another reason why Bitcoin > Banks
Post by: chsados on July 02, 2012, 11:00:10 PM
Quote
At times, Barclays traders sought to affect rates on dates when interest-rate derivatives contracts settled, thus profiting more from trades, according to documents made public by the U.S. Commodity Futures Trading Commission, one of the agencies conducting the Libor probes. Here’s an e-mail about the three- month rate from a senior Barclays trader in New York to the London banker who submitted the rates: “Hi Guys, We got a big position in 3m libor for the next 3 days. Can we please keep the lib or fixing at 5.39 for the next few days. It would really help. We do not want it to fix any higher than that. Tks a lot.”

Bankers submitting rates responded to such requests as if they were routine: “For you, anything,” and “done ... for you big boy,” according to the e-mails. Not that the efforts went unappreciated: “Dude. I owe you big time!” one trader wrote to a Libor submitter. “Come over one day after work and I’m opening a bottle of Bollinger.”

Barclays traders also coordinated with counterparts from other banks. In an instant message, one Barclays trader wrote to a trader at another bank: “If you know how to keep a secret I’ll bring you in on it, we’re going to push the cash downwards. ... I know my treasury’s firepower ... please keep it to yourself otherwise it won’t work.”

Read full article here (http://www.bloomberg.com/news/2012-07-02/barclays-case-shows-something-s-rotten-in-banking-culture.html)


Title: Re: Barclays: Yet another reason why Bitcoin > Banks
Post by: marcus_of_augustus on July 02, 2012, 11:57:04 PM

The best quote I heard was the "... LIBOR has become dislocated from itself ... " , these were the kinds of psychological contortions they wrapped themselves into to justify to themselves they weren't involved in a criminal conspiracy to defraud millions of people from billions of dollars.

In the end though, the spiralling IT costs of wrapping secure app layers on top of an insecure core system, as they try to compete with inherently-secure systems, will cause the current system to bankrupt itself (and whoever else it manages to glob onto on the way down).