Liz Warren has guts … and not the good kind, either
My favorite non-Cherokee Cherokee penned an op-ed piece on the LIBOR scandal in The Washington Post yesterday. The coverage of the scandal hasn’t exactly been front page news, but that’s probably due to the average Joe and Jane having no clue as to what LIBOR is, not to mention the equally clueless, non-financial communications wizards in our news media.
However, having Elizabeth Warren take on the LIBOR issue as a champion of us little folk is a bit much.
The Libor fraud exposes rot at the core. Now, who will stand up to fix it?
Certainly not you, Liz. Not with your record of equally gaming the system for years for your own personal advancement. Champion of us little folk, eh, when you didn’t have the decency or courtesy to meet with Twila Barnes and her group (authentic members/descendants of the Cherokee nation), when they traveled to Boston to ask you why you’re continuing to put forth your false claim as a descendant of this noble Native American nation. Why, even your mother’s own death certificate listed her as “white” when it clearly mentioned “American Indian” as an option.
But back to LIBOR. As Liz continues her rant about the corrupt, nefarious Wall Street bankers, one notices that not a mention is made of Timmy Geithner, former President of the New York Federal Reserve Bank, and the role he played, or rather not played, in the scandal. The Wall Street Journal is spot on in their review:
Mr. Geithner and the rest of the Federal Reserve were so unalarmed about the claims of inaccurate Libor rates that they even continued to use Libor as a benchmark. In September 2008, the New York Fed extended an $85 billion line of credit to rescue AIG. The interest rate for that loan was based on the three-month Libor rate, plus 8.5%. Two months later, the Fed restructured the rescue package, lowering the interest rate to Libor plus 3%.
And so mild was its concern that when the Fed set up the Term Asset-Backed Securities Loan Facility, or TALF, in November 2008, it set the interest rate for the emergency program on the one-month Libor rate, plus a premium. That program, which eventually lent $1 trillion to banks and hedge funds, was administered by none other than the gumshoes at the New York Fed.
LIBOR is an integral component of the world financial system, and its apparent manipulation brings into question the transparency of the workings of that system. However, Liz Warren, in her attempt to lead the charge for more regulation and even more government interference, uses a poor choice of words, as in “rot in the core.” Looking at her recent past history, including her refusal to pay her own “fair share“, I can only walk away with, “mirror, mirror, on the wall….”