Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://secure.socialistparty.org.uk/issue/858/20801

From The Socialist newspaper, 3 June 2015

Finance capital - taking Liborties

Simon Carter

The ongoing trial of former UBS and Citigroup trader, Tom Hayes, has revealed the huge scale of the 2012 Libor rate fixing scandal perpetrated by the major banks.

Eight banks and finance houses including Barclays Bank, JP Morgan, Swiss bank UBS, Royal Bank of Scotland and Deutsche Bank have already been fined billions by UK and US authorities over the scandal.

Many of these banks are also facing another tranche of hefty fines for fixing the Forex - the foreign exchange currency rates - for at least a decade.

Libor stands for the London Inter-Bank Offered Rate. It is an average interest rate calculated through submissions of interest rates by major banks in London.

The Libor prices the loans made to either building societies or commercial loans to small companies. An increase in Libor can add hundreds of pounds to households' annual mortgage repayments or to small business loans. Libor is used in pricing $800 trillion worth of financial contracts.

Rigged

In attempting to fix the Libor rate, the banks rigged the market in its favour, making bigger profits.

During the 2007-08 world financial capitalist crisis, and subsequent credit crunch, banks were anxious about lending to one another and the Libor rate rose accordingly. If a bank looked as if it might collapse, the rate they were charged to borrow went up.

Barclay's top management told staff to lie, saying that they could borrow at lower interest rates than they could, in order to cast the bank in a better light.

A further 20 traders have been charged following a Serious Fraud Office investigation but there were probably hundreds more involved, and none of the banks' top fat cats have been charged.

As expected, the banks and the UK government have issued the usual statements about "tighter rules", being "more rigorous" and ensuring "transparency", etc.

But it's clear that even when news of the scandal first surfaced the banks' traders continued their crooked dealings. And, furthermore, what are the chances of new dodgy dealings of finance capital being exposed in the coming years?

It's equally scandalous, but completely in character, that establishment party politicians ignore the only meaningful course of action to prevent these money grubbing parasites re-offending, ie nationalisation of the banks, under democratic workers' control and management.

Then, instead of lining their pockets at our expense the huge financial funds of the banking sector could be used to finance a vast expansion of jobs, vitally needed council housing, environmentally friendly infrastructure projects, and public services as part of a socialist plan of production.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 3 June 2015:


Socialist Party news and analysis

Strikes get results

Tories deepen housing crisis

Labour leadership 'choice' confirms need for new party

Bruised and Blattered - Fifa's boss eventually resigns

Finance capital - taking Liborties

Setting the anti-war record straight

Filipino nurses fight Daily Mail smears

Them & Us


Socialist history

The lessons of Labour's 1945 victory

Heysel: How socialist councillors built bridges


Socialist Party youth and students

Budget Day: Smash Tory austerity!

Queen's Speech protests: determination to fight back

Sri Lankan students protest


Socialist Party workplace news

Lewisham academy schools plans dropped

Victory for Kone strikers!

Glasgow council concedes over pay grading

Network Rail forced to make new offer

PCS members rally in Trafalgar Square

Bromley anti-privatisation action continues

Workplace news in brief


International socialist news and analysis

Spain: left 'popular unity' lists win key victories

Britain: end deportations - solidarity needed

Chile: 200,000 protest in Santiago

Hong Kong: refugee campaign victory


Readers' comment

Mental health services gutted by Labour cuts

How the unemployed are targeted with sanctions

Human rights hypocrisy


 

Home   |   The Socialist 3 June 2015   |   Join the Socialist Party

Subscribe   |   Donate   |   PDF  |   ebook






Related links:

Banks:

triangleWhat lies behind the US-China trade war?

triangleLabour looks to Bank of England to stall house prices

triangleNew recession fear stalks the world economy

triangleBillionaires avoid paying and even talking about tax! Take the wealth off the 1%

London:

triangleWest Papuans demand self-determination in London

triangleUnions must fight to make bus drivers and passengers safe

trianglePCS strike at BEIS: "The life we live is not liveable"

triangleAnother London block of flats destroyed by fire - remove unsafe cladding now!

Interest rates:

triangleAmber warning lights flash on British economy

triangleHousing crisis: Corbyn's positive measures blanked by Labour's right

triangleDefuse the consumer debt time bomb: nationalise the banks!

News and socialist analysis

News and socialist analysis

11/9/19

Scotland

Scotland and Brexit: Developing threat to the capitalist union

11/9/19

General election

Tory meltdown - Organise to finish them off

6/9/19

Government

Tories in tatters: Corbyn must seize the time

4/9/19

Demonstration

Marches, blockades, strikes, occupations... How can protests win?

4/9/19

Socialist Party

Dozens of protests say Boris must go - Socialist Party policies heard on TV

4/9/19

Retail

What strategy can end the retail jobs massacre?

4/9/19

Wales

Austerity anger feeds movement for Welsh independence

4/9/19

Bury

Bury expelled from football league: Boot out the bosses ruining our game

4/9/19

Education

Money doesn't make up for cuts - education unions must organise for funding and against Tory attacks

3/9/19

Government

Tories out now - Corbyn in with socialist policies

28/8/19

Labour

Boot out Boris and all the Tories

28/8/19

Northern Ireland

Brexit and the border in Northern Ireland - will there be a return to the 'Troubles'?

28/8/19

RMT

Interview with Sean Hoyle - left candidate in RMT general secretary election

28/8/19

World economy

Imperialist tensions escalate as world economy teeters

28/8/19

Child abuse

Notts child abuse scandal: Socialist Party demands action programme to prevent future cases

triangleMore News and socialist analysis articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: info@socialistparty.org.uk

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 0798 202 1969

East Mids: 0773 797 8057

London: 020 8988 8786

North East: 0784 114 4890

North West 07954 376 096

South East: 020 8988 8777

South West: 07759 796 478

Southern: 07833 681910

Wales: 07935 391 947

West Mids: 02476 555 620

Yorkshire: 0114 264 6551

ABOUT US

ARCHIVE

Alphabetical listing


September 2019

August 2019

July 2019

June 2019

May 2019

April 2019

March 2019

February 2019

January 2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999