It isn’t just China…
A response to the article on corruption in China.
Business Insider penned this opening: “[Other articles have described the] widespread fraud that has become apparent, both in mainland and US listed Chinese companies…..an extraordinary number of the Communist Party and the military cadre had massive unexplained wealth …”
Let’s take a different approach. I have rewritten his sentence into a different context. Suppose you were an honest Chinese observer, reading the following sentences about the United States.
“Widespread fraud has become apparent in the Mainland US and among US-listed financial firms. Extraordinary numbers of political figures and public appointees have massive wealth. Examples include (1) Dick Fuld, who was a director of the Federal Reserve Bank of NY until his firm, Lehman Brothers, went into bankruptcy. He has not been charged with any crime. He denied knowledge of any accounting irregularities. (2) Former US Senator Jon Corzine’s firm was a Federal Reserve primary dealer before it failed. Huge balances of client funds are unaccounted for at MF Global. Corzine says he does not know what happened. (3) No one knows the counterparties of the transactions that cost JPM billions. (4) Members of Congress and their staffs trade on insider information and are not violating US law because of the congressional exemption that Congress legislated for itself.”
Steve, I could lengthen this but you get my point.
The LIBOR rigging is systemic. For evidence see a Bloomberg report from May 29, 2008, under the headline, “Libor Banks Misstated Rates, Bond at Barclays Says.” (Yes, the article ran more than four years before Barclays’s $453 million settlement last month with U.S. and U.K. authorities for manipulating Libor.)
The insiders on that board know the facts. Watch out for what is coming. It may dwarf allegations about Chinese corruption.
The US and UK systems were once the models for the world. They are now sick and corrupt. We are five years into a financial crisis and nothing has changed. Who are we to throw stones at others?
From David Kotok, via The Big Picture