The LIBOR Scandal's Lies

prospect.org — The financial world is seeking to place blame in the LIBOR scandal to divert attention away from the bad behavior of the banks. Their spin managers will want to make the proceedings and the media coverage into a discussion of regulatory failures. There is little doubt that regulators were both inattentive and complicit, and a thorough investigation of their failures is in order. However, regulators did not manipulate LIBOR; banks did. Their culpability and schemes to deceive the markets and the public must not be obscured by the search for what regulators knew and when they knew it.

more »