February 08, 2013
Sir, Neil Barofsky lets his heart all out, when complaining about unethical behavior in banking, and most especially about the lenient judicial treatment of all those many banks and bankers involved in various unethical actions, like for instance in the Libor rate manipulation, “The Geithner doctrine lives on in the Libor scandal” February 8.
And I don’t want to argue against him, but also need to remind him that, when it comes to unethical behavior in banking, nothing is so unethically as when bank regulators decide to impose capital requirements for banks which favor those perceived as not risky, those already favored, and discriminate against those perceived as risky, those already discriminated against.
These besides odious so dumb regulations, helped to create the excessive bank exposures to what was believed to be safe but turned out not to be, which caused the crisis, and stops many of the most important actors in our real economy from having access to bank credit, which keeps us in crisis.
The truth is that the Libor rate manipulation, in terms of unethical behavior, is pure chicken shit when compared with the interest rate manipulations by bank regulators in favor of “The Infallible and against “The Risky”