- July 5, 2012
- Posted by: Ted Bullen
- Category: Banking, Corruption, Ethics, News
Barclay’s London-based CEO, Bob Diamond, was ousted this week as a result of an admitted manipulation of the London InterBank Offered Rate (LIBOR). LIBOR has long been one of the world’s most used financial indices. Manipulation of LIBOR by Barclay’s and other banks, directly impacts consumers and businesses. Barclay’s first manipulated the rate so as to improve its margins on internal trades. Subsequently, Barclay’s submitted artificially low rates being reported for LIBOR averaging, to make the bank’s finances look more stable than they were so as to project stability during the height of the financial crisis.
Recently, another banking sector CEO, with a similar name, Dimon (Jamie Dimon), of JPMorgan Chase, faced congressional questioning over losses from high risk investment positions that the bank took in its London operation. Originally, the losses were expected to be around $2 billion – all internal money and not that of customers. Now losses are projected to go as high as $9 billion. This news has heated up the hot water that Dimon is already in. Now, add to this the fact that JPMorgan Chase is being investigated for playing a role in the LIBOR scandal, along with Barclay’s and other banks. This puts into question Dimon’s fitness as a leader.
With one Diamond out and another Dimon in a precarious position, it is sure that “banking’s” Diamonds/Dimons have clearly lost their luster.