Today’s Non-News

The ongoing, years late look into LIBOR came up with another nugget today as reported by Reuters. According to sources, traders at a US and Canadian bank altered their ring tones for Fan and Fred tipping them to "front run" the GSEs in the swap market. As a long time practitioner in Back Month Eurodollars, my only comment is "Lindberg Lands !"

To review: The banks conspired to set the rate so as to aid their positions. They rigged the electronics to trade in front of the biggest customers. And they strong armed floor brokers for fills by hanging the volume over their heads.

All of these shenanigans were so pervasive and obvious to anyone with even a tangential orientation to the market in the 10 years from 1995 to 2005. The handful of us that complained were held off as pariahs. The biggest financial scandal in the history of mankind continues to spill out dribble by dribble. Few bother to cover it, even fewer care.

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