Feb 08 2013

The “whore’s drawers” and the Libor scandal – a tale of two cultures

Posted by: Nick Shaxson in: Thoughts

From Rowan’s blog:

“A single mother who claimed more than £44,000 in benefits but failed to tell the authorities she was living with a man, has been sent to prison.”

And then from the Libor fraud scandal, he pulls out this correspondence:

Yen Trader 1: can we lower our fixings today please [Primary Submitter]
Primary Submitter: make your mind up[,] haha , yes no probs!
Yen Trader 1: I’m like a whore’s drawers.


Swiss Franc Trader: can u put 6m Swiss libor in low pls?
Primary Submitter: NO
Swiss Franc Trader: should have pushed the door harder
Primary Submitter: What’s it worth
Swiss Franc Trader: ive got some sushi rolls from yesterday?
Primary Submitter: ok low 6m, just for u
Swiss Franc Trader: wooooooohooooooo[,] 0.01%? that’d be awesome

And then there’s the “just amazing how Libor fixing can make you that much money.”

And of course we can all guess how many participants in Libor fraud have gone to prison for it. (Clue: it’s a very round number.)

Enough said, I think.

More from Bosworth-Davies, a former fraud squad detective, on the Keiser report, here. (Starts at about 14 minutes in. Hat tip: Gail Bradbrook.)

Among many other things, he mentions the euphemistically termed “mis-selling” PPI scandal:

‘Mis-selling’ – that sounds OK: it sounds like the guy just made a mistake, and that they’ll recompense the customer. But by calling it mis-selling, they are dumbing down the whole context, if they said the banks have been defrauding you it would send a completely different message. It is a way of covering up fraud by re-naming it. It is very clever, it’s deliberate, it’s effective.”

Quite so, and note Garry’s comment underneath. I also like this:

“I am not blaming (the FSA leadership) she and her team aren’t sufficiently qualified to understand how you go up against a mainstream organisation that is behaving like organised criminals. You have to bring in men and women who know how to deal with organised criminals.”

one comment

Garry Anderson 2th February, 2013 5.01 pm

Hello Nick.
The FSA would not tell us the difference between fraud and mis-selling. So we made an official complaint against them for their ‘lack of integrity’. We won having basically proved they are crooks. We had been ‘mis-sold’ an endowment mortgage and have the evidence to prove it was fraud. We have just gone through the FOS and they even changed our complaint from fraud and churning to one of mis-selling. Also they are ignoring the final response letter from Barclays. The FOS are crooks also – including the head Ms Ceeney. Barclays are still profitting from the scam and still extorting payments for the shortfall.
BTW: The SFO would not tell us the difference either.

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