Tuesday, July 3, 2012

LIBOR Cyborg - IV

I'm sorry, I really didn't want to do one more, but what else is there? 

The Chairman resigns, taking moral responsibility for an executive decision. CEO digs his heels in and not-so-subtly threatens the Central Bank. Next morning, like a palace coup, the CEO is gone. His replacement will be chosen by the going-going-gone-but-not-really Chairman. There's news that the COO might be following the CEO. Isn't it simply delightful when a scandal is upon us? 

It is becoming obvious that the Board decided to sacrifice the Chairman in order to save the CEO, but things got so far out of hand that he simply couldn't be saved. Its also come to light that the CEO was, in effect, asked to be thrown out by BOE Governor's eyebrows Juicy. 

Oh and wait for it, there's a Parliamentary meeting on the issue tomorrow, at which the now-ex CEO is going to testify and where he reportedly plans to put a part of the blame on BOE by saying that he was told by BOE officials that you know, you don't really have to tell them what you think your actual LIBOR rates are.  And whatever little incentive he might have had to keep his trap shut must have been totally thrown out of the window by this removal, right? Cannot wait for that to get over now...

The BBC says The City of London is in panic. One man's panic is another man's entertainment you know...