Marine Takes British Bankers’ Libor Funds With Chaff In Pawlenty’s Cloud
United States Marine Field McConnell has taken control of the British Bankers’ Association Libor funds with chaff in the Wizmo cloud used by Tim Pawlenty to run Thomson Reuters-rate setting software.
McConnell claims the BBA handed over Libor fund management after chaff suggested Wells Fargo’s John Stumpf had used Pawlenty’s cloud to relay Onion Router ignition signals to Twin Towers incendiary bombs in support of phony 9/11 pass-through claims.
To be marked attention Tim Pawlenty, McConnell is copying this post to Anne Wallace (email@example.com), the senior director for consumer financial services, The Financial Services Roundtable, and the president of the Identity Theft Assistance Corporation.
Libor virtual deception with chaff in Pawlenty’s Cloud
“Identity and Deception in the Virtual Community Judith S. Donath MIT Media Lab Prepared for: Kollock, P. and Smith M. (eds). Communities in Cyberspace. London: Routledge Available in Croatian, as Identitet i prijevare u virtualnoj zajednici, (translation courtesy of The Institute of Ethnology and Folklore Research) or in Greek, as ΤΑΥΤΟΤΗΤΑ ΚΑΙ ΕΞΑΠΑΤΗΣΗ ΣΤΗΝ ΔΥΝΗΤΙΚΗ (VIRTUAL) ΚΟΙΝΟΤΗΤΑ”
“Bank lobby agrees to step back from Libor role
Reuters – 8 hours ago
LONDON (Reuters) – The British banking lobby responsible for setting Libor said it was happy to hand over the task to regulators, days ahead of an expected UK proposal to take tighter control of the scandal-tainted benchmark borrowing rate.
Martin Wheatley, a top UK regulator, is expected to propose stripping the British Bankers’ Association of its supervisory role in setting the hugely influential London interbank offered rate, in plans to be presented on Friday.
“If Mr. Wheatley’s recommendations include a change of responsibility for Libor, the BBA will support that,” the BBA said in a brief statement on Tuesday.
Libor, which underpins global trade and is used as a reference for pricing loans and transactions worth more than $350 trillion, has been engulfed in controversy since Barclays was fined a record 290 million pounds ($471.38 million) in June for fixing it in the past.
The rate is based on banks’ assessments of what they expect to be charged, rather than measuring actual lending rates. The process is not supervised by financial regulators, and has drawn wide criticism for being insufficiently strict.
The Wheatley review, due out on Friday, is expected to propose anchoring Libor interest rates to real transactions, rather than rates at which panel banks believe they could borrow cash from their peers on an unsecured basis.
In the United States, regulators reacted positively to the announcement.
“Libor is a global benchmark which is in dire need of a massive make over,” said Bart Chilton, a commissioner at the Commodity Futures Trading Commission, which was involved in the settlement with Barclays. “Step one is to get it away from an interest group.”
Libor has been criticised since the credit crisis in 2008, when interbank lending dried up, forcing banks to submit rates that were an estimate rather than a gauge of real deals and allowing them to keep Libor artificially low.
Even before the credit crisis, fixing the rate allowed derivative traders to make gains, enabling them to know in what direction the prices of complex financial instruments such as interest rate swaps were heading.
The BBA took control of Libor in 1986 and now covers a suite of 150 rates in different currencies and maturities, forming the basis for pricing contracts worth $350 trillion globally, from home loans to credit cards [and Small Business Administration and student loans].
Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, one of the bodies that fined Barclays, said on Monday Libor should be replaced or changed, suggesting it be based on “actual, observable market transactions.”
Thomson Reuters, parent company of Reuters News, calculates and distributes Libor rates for the BBA.
(Reporting by Huw Jones, Steve Slater and Douwe Miedema; Additional reporting by Alexandra Alper in Washington; Editing by Jane Merriman and Leslie Adler)”
More to follow.