COMMENT: Libor myopia risks missing the big picture of regulatory failure

July 11, 2012 6:14 PM

The Libor scandal is being mistakenly linked to a myth that the financial crisis was the result of too little regulation, writes Matthew Sinclair in City A.M.
PRICES keep markets sane. The information they provide connects the decisions made by traders, investors and managers to reality. Markets become delusional, and can fail spectacularly, when those price signals are interfered with and distorted. What we have sadly learned with the recent scandal at Barclays, and other major banks, is that the distorted price signals were not just the result of faulty regulations, but also the manipulation of the key Libor rate by participants in that market.

Click here to read the complete article

The Libor scandal is being mistakenly linked to a myth that the financial crisis was the result of too little regulation, writes Matthew Sinclair in City A.M.
PRICES keep markets sane. The information they provide connects the decisions made by traders, investors and managers to reality. Markets become delusional, and can fail spectacularly, when those price signals are interfered with and distorted. What we have sadly learned with the recent scandal at Barclays, and other major banks, is that the distorted price signals were not just the result of faulty regulations, but also the manipulation of the key Libor rate by participants in that market.

Click here to read the complete article

Latest Blogs:

TaxPayers' Alliance Icon

The dream of home ownership

1:58 PM 20, Nov 2017 Ben Ramanauskas

TaxPayers' Alliance Icon

The REAL impact of beer duty

3:14 PM 14, Nov 2017 Ben Ramanauskas

TaxPayers' Alliance Icon

Paradise Papers

1:44 PM 06, Nov 2017 Duncan Simpson

TaxPayers' Alliance Icon

Innovations like "CareBnB" are good for the NHS

4:39 PM 02, Nov 2017 The TaxPayers' Alliance

TaxPayers' Alliance Icon

Coming to the aid of aid

5:06 PM 01, Nov 2017 Duncan Simpson