The LIBOR rate-fixing scandal is coming to America

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Now – more than a dozen banks are being investigated by the U.S. Justice Department to determine just how widespread the rate-rigging scandal, which might have cost consumers billions of dollars, really is. So far, only one bank – Barclays – has been implicated in the scandal. But with the DOJ on the case, and several cities launching their own investigations to figure out if their pension funds took a hit as a result of the rate-rigging, it could just be a matter of time before other banksters’ heads role.

Congress is jumping into the mix, too, with plans to bring Federal Reserve Chairman Ben Bernanke and Treasury Secretary Tim Geithner to Capitol Hill for hearings before the Senate Banking Committee and the House Financial Services Committee.

Given the charade on Capitol Hill when JP Morgan Chase CEO Jamie Dimon came down to testify a few weeks back, we shouldn’t expect too many tough questions about this latest financial scandal. Then again, if Treasury Secretary Tim Geithner knew what was going on while he was head of the Federal Reserve Bank in New York – then we might actually get some answers. After all, if there’s one thing Republicans love more than protecting Wall Street, it’s embarrassing the Obama Administration. Keep an eye on this story.

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Thom Hartmann A...
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From NYTimes today — "Rate Scandal Stirs Scramble for Damages" by Nathaniel Popper

"As unemployment climbed and tax revenue fell, the city of Baltimore laid off employees and cut services in the midst of the financial crisis. Its leaders now say the city’s troubles were aggravated by bankers’ manipulation of a key interest rate linked to hundreds of millions of dollars the city had borrowed.

Baltimore has been leading a battle in Manhattan federal court against the banks that determine the interest rate, the London interbank offered rate, or Libor, which serves as a benchmark for global borrowing and stands at the center of the latest banking scandal. Now cities, states and municipal agencies nationwide, including Massachusetts, Nassau County on Long Island, and California’s public pension system, are looking at whether they suffered similar losses and are weighing legal action."

It looks like this could turn into a free-for-all!

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Karolina
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Nov. 3, 2011 7:45 pm

State owned banks looks like a good idea. There is only one state bank in USA, the bank of North Dakota. Everything is free enterprize in USA including money creation!

"The absence of outrageous, multi-million dollar salaries would translate into less costly banking services, plus services would be offered in what are now “bank deserts,” where the poor are required to use expensive, neighborhood check-cashing storefronts. There would be no need for “reserves” or for the massive bureaucracy needed to track reserves, nor for the massive compliance bureaucracies, nor for FDIC insurance. No need for Fannie Mae or Freddie Mac." says Mitchell in

http://rodgermmitchell.wordpress.com/2012/05/12/at-long-last-are-we-read...

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