He Said, She Said, I Say ~ The Risk Averse Alert

Tuesday, July 17, 2012

He Said, She Said, I Say

The gentleman suggesting you, "Put this in your pipe and smoke it" now offers you a light...

Today, BoE chief Mervyn King "dismissed accusations that he failed to pick up on the manipulation of Libor, saying he only found out about the malpractice two weeks ago and shooting back at implied criticism from U.S. authorities that London had been too slow to act."

"The first I knew of Libor wrongdoing was when FSA reports came out two weeks ago," King said.

"When questioned over a 2008 email sent by Timothy Geithner, then president of the New York Fed, to King about recommendations to enhance the credibility of Libor, King said the Fed did not raise any evidence of wrongdoing."

"In emails released by the Bank of England, Geithner's proposals, dated May 27, 2008, included a section on how to eliminate the incentive to misreport banks' lending rates."

Whereas appearing today before the Senate Banking Committee Bernice assured the panel that, British authorities were in the loop way back when, yet did not implement the New York Fed's recommendations.

And so is the intended destination in fact reached stirring a pot simmering Glass-Steagall. Someone's got some some splainin' to do (and her name, at least here anyway, is Tina). Not so fast sweeping Barclays under the rug, Team Fraud.


So, let's take it right back to July 2011. Today's technical similarity is just too compelling (see momentum, bottom panel). Plus, there's a lot more weakness where that came from...


A technical backdrop still markedly deteriorated finds today's "he said, she said" disparity at the core of the trans-Atlantic banking system a well-timed affair for kicking off a heaping helping of nasty.

Fast Money
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