Barclays interest scam is making news in last few days. It has been reported that Barclays rigged the Libor (London Interbank Offered Rate) interest rate to take unfair advantage. It is claimed that Barclays executives published incorrect rates to take edge in market – with full knowledge of their business leads. The scandal has so far resulted in resignations of two senior-most executives; more resignations / expulsions are sure to happen post full investigation.
Even though bankers were accused for so many other things in past, cheating and dishonest to each other were not the prominent complaints. Generally, there is an assumed honour and honesty among thieves on how they will exploit the market. Even that honour is now broken! Damage towards this breach of honour has been calculated to £290 Million and same is fined on Barclays. [How “accurately” honesty has been priced by FSA and CFTC! Rest of the banks can now relax and keep the security ready before commence of next round of cheating!]
Question is – is anyone surprised by what has happened? I don’t think so. Barclays is nothing but just another business, whose primary reason for existence is to make profit. Media has reported that there are a number of other banks who have committed this serious crime.
Success or failure of banks affects the whole economic status of a country. Banks could literally make or break a country, and hence should not be treated with less importance than internal affairs or military of any state.
Given this truth, should this power be vested with private sector – whose primary motive is just to make profit? Are we comfortable to handover military affairs to private companies? If not, why banks? The only solution is state owned, not-for-profit banking SERVICE[….to be completed]
Centralisation of credit in the banks of the state, by means of a national bank with State capital and an exclusive monopoly – Karl Marx, The Communist Manifesto