Unlike the USA, the British courts and legal process are not as in bed with the bankers as they are in New York. They have brought to court today on criminal charges former brokers charged with conspiracy in the LIBOR interest rate fraud that continues to expand. This stands in stark contrast to the policy in New York City regarding the banks and brokers there as being the notorious UNTOUCHABLES. The US is like to also charge low-level brokers who have been dismissed, but never the major bankers.
In our own case, the SEC appeared before Judge Louis A. Kaplan who pointed out that the document used by the SEC to bring its charges was (1) a translation of a Japanese document that they fashioned as they desired, (2) the omitted the first page stating they were notes, and (3) misrepresented the fact that we stated we were “conservative” and used less than 10% for hedging employing futures. They the SEC argues we were trading yen futures and had their receiver liquidate those positions when they were the hedge since the notes were payable in yen.
Judge Kaplan pointed out that the first page was missing and that we disclosed we would be using futures yet still granted the SEC injunction stripping the company of any right to hire lawyers appointing Alan Cohen of Goldman Sachs as the receiver and O’Melveny & Myers as his counsel. So even when the documents used do not say what the government claims, they still win in New York City. Kaplan even stated in court that if using futures as disclosed was “conservative” as the SEC was pretending, then “the last ant I saw is an elephant.” Nobody seems to have understood what hedge currency even was. Do you think they will EVER admit a mistake – only unbiased people would do such a thing – TYRANTS NEVER DO! So it is just hopeless and they cannot see that this simply warns that you have to be out of your mind to place any money in NYC if you cannot defend yourself when the bankers rip you off. This is why London regained the status of being the Financial Capital of the World. Unless there is REAL prosecution of bankers, there can be no free market and capital will never be safe.
Britain has not yet shown it will prosecute the heads of banks involved – only low level brokers. If Britain wants to retain that crown, it has to set an example for the whole world to regain confidence in its legal system and its integrity that the USA sold to the highest bidder,