Category: Insiders

Wall Street Banks Admit They Rigged CDS Prices Too

Tyler Durden :

Here is a system that ultimately allows banks to control the pricing for the instruments they use to bet against securities that they themselves create. This is just part and parcel of a never-ending paper wealth creation machine which generates billions in fiat money profits without creating anything in the way of tangible value and before it’s all over, this financialization of the US economy will likely end up bringing the world to its knees unless someone, somewhere puts a stop to the madness.

Is there anything left to be manipulated ?

→ Zero Hedge

Was Tom Hayes Running The Biggest Financial Conspiracy in History ?

 
It was an audio CD from inside Barclays. Gensler, his coterie, and members of the enforcement division gathered on scuffed-up sofas and chairs in the waiting area outside his office—the only meeting place with a working CD player—to listen. It was a telephone conversation between two Barclays middle managers that had taken place 18 months earlier, during some of the most turbulent days of the crisis. Speaking in a cut-glass English accent, one of the men told a subordinate that he needed to start lowering the bank’s Libors. When the more junior employee started to object, the first man told him the order had come from the most senior levels of the bank, who in turn were acting on instructions from the Bank of England.

Kervielesque :

“Well, that’s sort of ironic that you’re firing me, given that you were involved in it up to your eyeballs,” Hayes later recalled telling McCappin.

→ Bloomberg Businessweek

Rain Man In Trouble

 The Unraveling of Tom Hayes, Pt. One :

Ms. Tighe printed out the settlement documents and went through them with a yellow highlighter, with Joshua balanced on her lap. She was relieved. They made it clear that Libor manipulation was widespread. Her husband wasn’t even named.

That evening, as she prepared a joint of roasted lamb for dinner, Mr. Hayes sat nearby, puttering on his Apple laptop. A news alert popped up. Mr. Hayes clicked the link. A video of the U.S. attorney general at a news conference in Washington started playing.

“Sarah, I’ve been charged by the U.S.,” Mr. Hayes announced.

Credit : Peter Mlekuz, Janko Klavora

→ The Wall Street Journal