U.S. Banks Join Brits in LIBOR Party

JPMorgan (NYSE:JPM) is not finally being hit with the ugly stick by the regulators regardless of the hopeful tone of this article by the Huffington Post, because we all know that nothing will actually come of this.  The Federal Reserve and the U.S. Treasury were behind the rigging of LIBOR originally and the politics of it in an election year is that the banks will have to fall on their swords a bit in public to save the reputation of governments on both sides of the Atlantic.

The problem really is that those who can be swayed by any of this nonsense are those who never had their faith in government shaken in the first place: those employed and supported by it and brain-washed penniless progressives hanging on on Facebook (NASDAQ:FB) and the Huffington Post ensuring the continued vapidity of both of those obvious click-bait troll-fests.  So, the regulatory agencies issuing subpoenas now will be ignored until after the election and then they’ll go back to sleep along with the rest of Washington D.C. because there will be nothing worth caring about happening.

There’s that whole fiscal cliff thing.  But, that’s the other party’s problem.

What may come of this, at best, is a few more fines, which the Fed will pay for us by proxy, along with statements neither confirming nor denying guilt and protection from any further prosecution.  In other words, business as usual will be the order of the day.  Jamie Dimon knows this, so does Tim Geithner, which is why HBC), Barclay’s (NYSE:BCS) and those not on Chuck Schumer’s payroll however are in big trouble.

The Too-Big-To- Fail banks are to Too-Big-To-Jail because when confidence in the system is lost for real people pull their money out and collapse them before the Fed has the ability to type “1,000,000,000″ and hit ctrl-c/ctrl-v a whole bunch of times.  That’s why, in the end, nothing of consequence ever happens to these guys, until the day comes when they truly turn on each other.

 

 

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Tom Luongo

About Tom Luongo

Tom Luongo is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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