For those of you who don't know that's English rhyming slang for wank. If you don't know what a wank is look it up in a slang dictionary. Not a very nice term to call a person. So it goes Barclays bank = "wank" hence the rhyme. Got to love those Brits and their creativity. We've heard or may have heard of the latest fines against this institution but nobody reported the actual extent of the damage and who else was in on the scam. I don't know all the details yet as it's all still under investigation but the meat of the crime was simple. The LIBOR which we refer to over here in the U.S. as the discount rate (that's the rates banks charge each other) was manipulated for the benefit of the banks. Not being set by the market forces of supply and demand this effected the price of all of the consumer loans things like mortgages, car loans and credit cards.
They have the nerve to call themselves professionals. They forgot to add the ending word, thieves.
The extent of the Damage
The fine which was in the $400 million range might seem excessive by anyones' standards until you look at how much money was involved. We're talking about $360 trillion dollars here. That's trillion with a T. That would be enough to easily take down the entire worlds' economy in a heartbeat. But the real questions remain to be seen. Does Barclays have enough capital reserves to cover even a fraction of the losses or insurance against a meltdown? Time will tell as the investigation unfolds. But don't expect too much information on this to be broadcast as such because to do so could in itself bring down banks and entire national economies. Not that that isn't happening already. What can we the little guys in this sea of sharks expect in the coming days? Well, if the whole thing doesn't collapse of its' own weight more and higher fees and penalties. That's the nature of incompetence and corruption to pass the problem of to those who had nothing to do with it. I know it's our fault for putting our money in the banks in the first place. It was just too tempting for the crooks.
Will we see some perp walks with CEOs trading in expensive suits for prison orange? I almost doubt it. While us peons can get jail time for stealing a loaf of bread these guys are making off with the treasuries of entire countries. Willie Horton was wrong. Don't bother going to a bank to rob it, own the bank! That way you can rob the entire city state and nation. Willie thought small I guess.
There's the derivatives and the swaps not yet disclosed and I'm almost certain that once this onion is peeled back there'll be nothing left at it's core. Debt is only seen as an asset on the banks books but to us only when it's backed with something of value. The trust lost here will be astronomical. Not that there was much to begin with in the first place after our last go round.
Just waiting for the day when every bank transaction at a bank will come with a fee whether deposit, withdrawal or payment. My god loan sharks will seem kinder after this is all done. Mark my words.