Submitted by Tyler Durden: Three weeks ago, before Lieborgate broke and the world finally understood what so many had been warning about for so long, we noted something else:
that not only was LIBOR manipulated and fudged daily between 2005 and
2008, but as the chart in the attached post shows, it has been gamed
every single day in 2012 as well. More importantly, we noted something
else - the transition at the top of the British Bankers Association: the
organization responsible for compiling LIBOR submissions from member
banks, and reporting what the daily Libor fixing is. Because in the
second week of June, the BBA's new head became... the former head of lobbying for none other than Morgan Stanley, Anthony Browne, a firm which itself was just caught red-handed manipulating
rating agency "independent ratings" to benefit its bottom line (and
which itself miraculous was downgraded by less than what the market
expected in order to allow it to avoid several billion in collateral
calls). And what did Anthony do at Morgan Stanley until June 12: he was head of Government relations for Morgan Stanley for Europe, Middle East and Africa and was previously an economic and business adviser to London Mayor Boris Johnson. That's right - "head of government relations" for a rather prominent TBTF bank, being put in charge of daily Libor fixing. But everyone is shocked, shocked, that gambling has been going on here for years.
From the Independent:
Who he?
Former journalist with The Times, Observer and BBC. Moved into the
world of think-tanks (right of centerish) and then became Lond on Mayor
Boris Johnson's policy director for economic development. Most
recently Morgan Stanley's chief lobbyist. At the age of 47, he remains a
high-flier.
Stepping into the shoes of?
Angela Knight. Fiesty and funny former Tory Treasury Minister who is
off to no less calm pastures as the boss of Energy UK. (You thought
bankers were unloved? Wait until you see what happens to power
generators.) She guided the banking world through the five most
turbulent years in the industry and scored points for never ducking the
issues and teaching far better-paid people than herself how to
apologise.
What's next?
Carry on apologising. Continue to tell the top bankers that they are
still paying themselves far too much. Oh, and as you say in your own
words "ensure the banking sector returns to health, remains in Britain,
and has the trust of the public and politicians".
Pitfalls?
George Osborne is desperate to start selling off some of the
taxpayer stakes in Royal Bank of Scotland and Lloyds. Don't let him
oversell the strength of the industry. Vince Cable will have a dig when
ever he can. New entrants like Metro Bank, Virgin Bank and even
M&S will want to grab their slice of the BBA cake at the expense of
longer-established banks. Don't punt on who might be the next Governor
of the Bank of England. You could put several noses out of joint.
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