Dealers including top American banks which control the $12.8 trillion US Treasury market rigged bond auctions for years, Bloomberg reports.
Citing a federal antitrust lawsuit, the financial data and news provider says the likes of Goldman Sachs, JPMorgan, and Morgan Stanley coordinated to manipulate Treasury auctions. This has the looks of another Libor like scandal. In a recent report from the Telegraph, Tom Hayes, a former derivatives broker at Citigroup and UBS was at the centre of a network of traders at 10 firms that conspired to manipulate the Libor benchmark between 2006 and 2010. and was sentenced to 14 years in prison. Hayes, who was the first person to be found guilty by a British jury of rigging Libor rates, has ask the courts for permission to appeal his sentence.
There is no doubt however, that the real culprit behind this new scandal is the Federal reserve via its quarterback JPMorganChase and other big banks. Hopefully, we’ll see in the near future bankers such as
Jamie Dimon (CEO of JPMorganChase) go to jail for such activities, along with his top executives. The markets are rigged and only serve the interests of the big players. Maybe we should follow the lead of Iceland when it comes to crooked bankers. But unfortunately, big corporations are in charge in Washington DC and before we can see any possibility of imitating Iceland’s action, a big clean up in the US Capital will be required.
On a side note, the debt bubble is about to pop, and nothing can stop that from happening. It may be delayed for a few weeks but it will happen, it’s only a matter of time before a financial reset is initiated.