Also in this playlist...
This transcript is automatically generated
Do better than that.
The rate rigging scandal continues to rock the financial world today as the Royal Bank of Scotland -- up to being the third bank.
To manipulate gold global benchmark interest rates known as Libor the RBS president calling the bank's involvement the biggest disappointment of his legacy.
A legacy our next guest described as being despicable and ingrained in the bank culture as a whole joining me -- CFTC commissioner Bart Chilton.
Part welcome to the show.
Good to be with -- -- So this is a story we've been following for some time these of this Libor scandal and that thing it was astonishing to me in a reason we've got -- the show tonight.
Is she just the unabashed -- bragging.
Their frat boy attitude that occurred with this and how they the way they talk it's like they're laughing at us historic -- has to pay more.
-- you're you're absolutely right -- they were up brazen.
They acted as if they were above the law.
And -- the rules of fair play just didn't matter to them.
And that's why we have this as you say this is the third such bank the first was Barkley is the second was UBS and now the royal bank of Scott RBS.
The third with a penalty of more than 600.
Which I think is serious and significant and hopefully it will send us a strong and resounding message that.
Don't mess with these markets they are too important for -- I around the world the investigations go on but you're -- -- -- -- the RBS and found lots of embarrassments were fighting in the reporting.
Today in this week they'll literally hundreds.
Of efforts to manipulate Libor it's astonishing to me.
Because this this rate lets -- describe why this is so important.
This determines how much paper mortgage loan or any kind of loan or -- business solo at the end of the day if they're manipulating Libor.
You have no control over your -- -- -- you're absolutely right these these these are benchmark rates that set the interest rates that people pay.
For different currencies all over the globe so any thing that anybody purchases with credit has the potential of being skewed.
And you know that's just too important not just to Americans but the people all across the globe are so -- messing with these markets is just we cannot tolerate it and that's why I'm so glad that we've had we have what I think -- a very hefty fine.
-- may be going to be via these guys in my view but I want you read some of the comments they make that sort of astonishing I think we have -- -- screens control room.
For the come up in just a second but it's there unabashed lack of embarrassment about this.
This Libor setting it's getting not it's just amazing how Libor fixing can making that much money.
It's a card till now in London they smack all the one year iris and fix it very high or low.
And on and on it -- they need to interpret this for us.
Bart please delegate super high three and -- super low and tell us what this means pretty -- 41 and 51.
If he did I would come over there.
And make love to you what is -- reported that home.
How well I'll leave that to make love to you part -- your imagination but the 3 am in the six and down.
Means the three month Libor rate that they are asking for it to be set at -- rate.
Which is different and disingenuous.
From what the real rate would be which is what my different.
It is a legal absolutely and that's what we -- -- -- and they this Libor rate Jerry is set to sort of a weird way.
And I'll describe -- I think I can describe it pretty simply they take sixteen banks is the largest banks in the world.
They take all sixteen of them they throw the submissions from the top -- look for out below four out and then they take the middle.
-- RBS was in the middle a lot of the time.
So they actually did manipulate they attempted to manipulate the rate but they actually did manipulate because they were in the middle.
And like you say it's against the law and I'm glad we have this fine.
I think this hopefully sends a message that they're really does need to be a culture shift a culture change in the banking in the financial service sector.
Beyond Libor quite frankly I mean we've talked about it before all of them.
The Ponzi scam is all of the malfeasance it's going on in the financial sector -- they really need to be shaken up and I think it will start now.
But they can talk the talk but -- police Italy we need to see you walked the walk is you often -- Well and we need an even playing field for individual investors out -- people who are borrowing money.
They need to understand and know the markets there and be treated fairly part thanks for coming on tonight always a pleasure to have you on the show.
Thank you Jerry.
Filter by section