If you are new to this blog, you are invited to read first “The Largest Heist in History” which was accepted as evidence and published by the British Parliament, House of Commons, Treasury Committee.

"It is typically characterised by strong, compelling, logic. I loosely use the term 'pyramid selling' to describe the activities of the City but you explain in crystal clear terms why this is so." commented Dr Vincent Cable MP to the author.

This blog demonstrates that:

- the financial system was turned into a pyramid scheme in a technical, legal sense (not just proverbial);

- the current crisis was easily predictable (without any benefit of hindsight) by any competent financier, i.e. with rudimentary knowledge of mathematics, hence avoidable.

It is up to readers to draw their own conclusions. Whether this crisis is a result of a conspiracy to defraud taxpayers, or a massive negligence, or it is just a misfortune, or maybe a Swedish count, Axel Oxenstierna, was right when he said to his son in the 17th century: "Do you not know, my son, with how little wisdom the world is governed?".

Thursday, 28 June 2012

Greg Pytel: Barclays' interest rate rigging? Nihil novi

Yesterday it was announced that Barclays Bank was fined for manipulating interbank lending rates. It is business as usual in the City, not even the tip of the iceberg. Don't pick up on Barclays: this shows what the modern banking system degenerated into. It has nothing to do with free market financial trading. It is a crude and primitive manipulation and rigging. Very transparent indeed but regulators and politicians choose not to see this. As previously published on this blog: this also shows what kind of "top talent" the current financial industry attracts.

From a broader perspective it is simply a part of the largest heist in history which continues.


  1. The most telling part of this whole debacle is in The Economist's coverage of the story, where this is an "embarrassment" to Barclays... Really? An embarrassment?!?!

    But I guess that's the attitude that prevails in those circles, where the fact that it's a result of systemic dishonesty and ruthless greed in banking is completely disregarded.

    1. Well, if an ordinary folk is dishonest he (or she) ends up prosecuted and, frequently, in jail. But these guys are above the law. Is it not what modern western democracy is all about?

      Best, Greg

  2. Imagine a worker in say the automotive industry, is badly injured at work, in no time, "elf 'n safety" executives would be demanding the directors be brought to justice for allowing such an incident to occur on their watch. No doubt a prosecution would ensue, a criminal matter.

    However in this case the culprit(s) do the deed, and the top directors feint ignorance and it seems little happens, certainly most pundits were suggesting it was not a criminal matter. Indeed I heard it described as, "not playing straight", and a simple manipulation to gain an advantage, a cosy club, it seems. By any definition a fraud has taken place, anyone wilfully manipulating data for a commercial gain is acting fraudulently.

    The costs in the meantime, namely the fine, will no doubt be added to our banking costs, socialised! The Chief Executive, graciously offers not to take his humungous bonus. Bring out the tumbrils and prepare madame Guillotine, methinks!

    1. This is communism for the rich at its best. During communism days nomenklatura also could get away with anything.


      So in historical perspective nothing really new.

      Best, Greg