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Possibility -- -- we were that we were absolutely aware of not just of the reports that banks were under reporting this reporting.
But the nature of the rate.
He was aware that was secretary treasury Timothy Geithner saying is where fraud related to live -- in 2008.
Eight we have somebody who says you know what this is serious enough.
That the people responsible.
For tweaking these rates should be paying the price for the scandal joining us now is that man Dennis Kelleher better markets president.
And CEO aren't you say are arrests yesterday right here on this program Sheila -- the former FDIC chair said I agree with others Heller in -- -- she said.
They're fully she fully expects there will be arrested this -- But the easy part is to start with the traders it's not very often that you get voicemails.
Which essentially give you an open and shut case of intentional manipulation.
What is one of the most important rates in the entire world it'd fit every day it results in the pricing of something in the neighborhood of 500 plus trillion dollars.
A financial instruments from credit cards to student loans to mortgages.
-- to the rates that cities and towns and states -- in their bonds so victims here our tax payers and everybody else and the people who did this.
A lot of have some handcuffs on -- be taken to jail and be done pretty well.
That would be traders that would be the guys who were sending the emails -- -- is at least that's as far as we know as far as those banks are concerned.
Who wrote hey buddy can you -- me a favor and -- -- down a little bit thanks big -- those guys.
I yes -- that's -- start but look.
But it's not just one bank and one bank there's sixteen banks involved in the pricing of Libor one -- can't change Libor up -- down.
So it has to be multiple banks we know that we gonna say -- they are but this is just like when you -- -- after a mafia crime family.
Or an insider trading case or a criminal antitrust case you start with the -- You get them you arrest them you put them in court you make them talk they then give you their supervisors.
You then arrest them.
You put them in court you make them talk and you get them to give you their supervisors in the executives and you move up the chain and that's what needs to be done -- Let's let's talk about let's talk about pretty high up in the chain right now let's talk specifically about Timothy Geithner.
What worries a lot of folks it has not necessarily just what the banks were doing but the collusion.
Of the government and I know the Fed is not part of the government but sometimes it acts like it is but -- collusion are perceived collusion between the government.
And that these banks that's what fueled the bailouts that were very unpopular lot of people.
And some folks say that's what fuelled this scandal do you see that have because we now know that Geithner new.
About some of these rate fixings some of which may have been illegal.
And rather than referring it to our own prosecutors in the United States he just talked to the brits about.
You know I think it's important to distinguish between stupidity and incompetence and criminality.
I don't think it's where there is do you think was going on here at.
My nose has put out what is water -- -- -- -- well what was happening here.
We may need a longer show but Jonathan.
-- -- That the criminality is on the bank side and I think we need to prioritize.
You know -- how we -- what how we look at this the first and most important priority is to get the criminals who actually committed the crime and who really colluded in the criminal cents.
-- says it was Geithner who had the power to refer that criminality if there was one.
To the US authorities that's what happened for example would BCCI a foreign bank there was operating in New York on this oil and it was a New York prosecutor Robert Morgenthau that brought that -- down.
Well and David this you know that was Tom that within the bank they were not collusion where actual regulators did things criminal here it looks like the rate of an exciting -- -- -- there was criminal behavior back then go ahead.
Network not agreeing but here it looks like regulators had information that day that acted on in completely insufficiently or in the just in confidently.
That's a completely different issues and.
Criminals punished with this though.
Alert the authorities in England about this they were the regulators -- British banking authorities so could he's argued that he followed the letter of the law not necessarily the letter and spirit.
But the letter of the -- and he did shunted over to them.
Well the truth is it's like usual right the regulators all point to each other and they say not me and you know -- everybody's looking for cover.
And we should scrutinize them and they should be criticized and frankly the people who are still in positions of power should be punished if it's appropriate because they -- -- on the job.
On the other hand stupidity and incompetence just can't compete with criminality and we shouldn't turn a criminal story.
Into a political story there is still crooks working at these banks who engaged in this conduct there are still people who make getting bonuses.
As a result of this and that's wrong.
And if they were they able to continue to do that for four years the enablers should be in trouble as well.
I agree but let's get the bad the worst guys before we get the bad guys Dennis Miller like to see -- Dennis thank you for being -- better markets president and CEO we'll see you soon.
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