Episode 60: Bob Diamond and Barclays Libor Scandal

by robbooker on July 4, 2012

Play

Happy 4th of July! Join us for Episode 60, when Rob Booker takes a few minutes to rant about the latest, current events headlines. Rob expounds on the news surrounding Bob Diamond, the former CEO of Barclays who resigned in the wake of a giant scandal, where investors were swindled out of millions of dollars through the manipulation of interest rates across Europe.

Rob also spends some time waxing philosophical about principles of honesty and morality, and he also addresses questions like, “Why don’t more white-collar crimes lead to jail time?” You’ll hear all of this and more during Episode 60 of The Traders Podcast. Listen, and leave us a comment with your opinion on these matters. Thanks for listening!

{ 9 comments… read them below or add one }

JR July 4, 2012 at 8:47 am

We should call it in the future the “LIE-BOR” rate.

Reply

yvan July 4, 2012 at 12:46 pm

Rob, Jason thanks so much for bringing us the traderspodcast. I absolutely love it!!

Reply

John July 4, 2012 at 10:47 pm

I think the problem is we don’t have a true free market. These people can do this type of thing because the customer is not going to leave because they know that the Gov will bail them out if they mess up to bad. In a true free market the Gov does not bail anybody out because they have no money to bail anybody out with. So company’s don’t do the things there doing today because all there customers will go someplace else if they do. With out the Gov bailout what the company’s do now would be suicide for them. No the free market is not utopia and bad things happen to good people but bad things also happen to bad Banks and company’s instead of being rewarded with bonuses. If you break the laws of the free market you go out of business. If you follow the free market laws there’s a good chance of being greatly rewarded.

Reply

Bruce Mars July 8, 2012 at 11:57 am

Everyone can get as philosophical as they like…but if Mr Diamond were to relieve someone of a few dollars as they were walking out of a bank (methodology…your choice) as opposed from “his” way from inside a bank….. We would call him a thief and he would go to jail. The simple reason these paisty punks steal is they arent put in jail like a common thief, which is what they are, and THAT creates the culture. Lock em up. Pass laws that they do a min of 5 yrs for 1 million or less and add 5 yrs for each million over that and start lockin em up. In 15 yrs we will never hear of this crap anymore. And don’t put em in a country club…put em where they belong…with the rest of the lazy people in real prisons.

Reply

josef July 8, 2012 at 12:06 pm

I think the difference is comparing people who have soooo much wealth, and keep taking more illegally, and those working people who are barely getting by, and do something illegal on the side for some extra money. Same principle, but very different. When your own cup is overflowing, but trying to fill it more, is different than somebody whose cup is not filled, and he is trying to fill it a little. I also agree with Bruce above, if there is no penalty, then there is no deterrent. If you can steal a million, and only have to repay $10K (or whatever slap on the wrist), what’s the deterrent? The threat of being mixed in with other criminals would be huge!!!l ( anybody know about Rikers Island in NYC, it would scare every Wall Streeter to never doing something close to illegal)

Reply

Amarsir July 9, 2012 at 5:02 am

So apparently we’re choosing to disregard that Barclay’s lowered LIBOR to reduce borrower’s payments, thereby saving them from default in an attempt to prevent the crash.

“Hey, those guys put money in homeowners’ pockets. Get ’em!”

Doesn’t have the same ring.

Reply

Bruce July 13, 2012 at 1:34 pm

Wrong ring? I think you are listening to the wrong bell!!! They didnt lower libor to help borrowers….. hahhahhahhaaa nice try tho…; they lowered it to get themselves better positioned. WAKE UP!!!!

Reply

Jason Pyles July 19, 2012 at 7:50 am

@ Yvan,
It is our pleasure. And thank you for listening. The listeners and your comments here are what makes it all worth it. Thanks, again.
Jason

Reply

Crossbill April 20, 2013 at 11:22 pm

it’s simple, follow the rules…

Reply

Leave a Comment

Previous post:

Next post: