Libor Scandal Essay Example | Topics and Well Written Essays - 1000 words

Libor Scandal - Essay Example The dishonesty that was exposed by the authorities was very shocking and that the ultra conservatives needed to exploit the public by weeping into public gallery. When the authorities ignore incessant warnings about the true health of the system, they merely choose to be on the sidelines yet the problem continues to spiral out of control. The society must constantly drive for more control, through several bodies and commissions and their agencies, they seem to coil under the weight pressure of such scandals. The system of relationship between the authorities and business is a network of personal interests complicated by the mutual rules and regulation governing such a relationship and underpinned by a culture of ‘too big to fail’. The authorities must use their discretions to punish those manipulating the system for profit fully, and this must be conducted without fear and favor. As a consequence the most important lesson the society should have learned from the Libor sc andal is the perpetrators going out of business, but then again this might cause further pain for non- participants of the scandal such as their customers and shareholders. However, the real perpetrators such as the traders and the brokers should feel the full force of the law for their actions in manipulating the Libor rate; therefore, they must be charged with criminal offence. When people argue about the evils of capitalism, they fail to notice that the system cannot manipulate itself; it takes the people effort to do that. The writer of the post decries the weight that the system carries, he notes when a scandal breaks out, the system bears the blame yet people cause such scandals. On the other hand,... When people argue about the evils of capitalism, they fail to notice that the system cannot manipulate itself; it takes the people effort to do that. The writer of the post decries the weight that the system carries, he notes when a scandal breaks out, the system bears the blame yet people cause such scandals. On the other hand, the Business Week claims that the Libor scandal had the consequence of destroying the entire worlds’ financial structure; this is because several people relied on the Libor rate as the benchmark rate. The rate is standard for over 360 trillion of securities loans including students and bonds, and its manipulation might have enormous results. The paper reported that there are several lawsuits filed seeking compensation from the world’s top banks such as Bank of America, JP Morgan Chase, Barclays, and Citigroup amongst other banks. Predictably, the banks moved to court to counter the suit by application to the court for dismissal of the suit, and these banks faced an uphill task of winning back their clients back after the enormity of this scandal was revealed. Consequently, these banks are likely to face protracted cases in court by aggrieved parties from all over the world at least thirteen different suits have been filed in the US. The paper further persuades the investors not to take lightly the importance of the issue ‘Investors should not minimize the importance of this matter’. The authorities must always have the interests of the wider public at heart.