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03

Jul

LIBOR scandal - canary in the coal mine ?

more from the chief conductors of the Titanic er the City of London:

Lord Adair Turner, head of the Financial Services Authority (on whose watch the Libor rate-rigging took place), has just condemned the scandal - and admitted that the true scale of City wrongdoing is much greater.

Turner told the FSA’s public meeting this morning that the full investigation into what went wrong will take years.

Here’s the key quotes:

The LIBOR scandal has caused a huge blow to the reputation of the banking industry. The cynical greed of traders asking their colleagues to falsify their LIBOR submissions so that they could make bigger profits – has justifiably shocked and angered people, in particular when we are facing hard economic times provoked by the financial crisis.

But sadly it is clear that the behaviours evidenced in the LIBOR case were not, in the years before the crisis, confined to this specific area of financial activity.