Time For Abbott Government and ASIC to Get Serious About Australian Banksters
by Dr. Andrew D. Schmulow
Independent Australia, (2015), published electronically.
The 14-year sentence handed to Tom Hayes, the Yen trader at the centre of the Libor-fixing scandal in the UK, is the longest sentence yet in a scandal that has cost his former employer UBS, and others, US$17 billion in fines.
Apart from his obvious guilt, Hayes went out of his way to antagonise the Court, and the Judge.
Hayes, described as the “Machiavelli of Libor”, will not be the last to suffer the consequences of this fraud. Unfortunately, however, it appears bank executives will not be among those punished. And this is curious. UBS either knew, turned a blind eye, or had such weak internal controls that Hayes was able to perpetrate this fraud for three some years.
UBS was no doubt motivated, in part, by the US$260 million Hayes made for it. All the while he was being courted by the usual suspects: Lehman Brothers and Goldman Sachs.
He then fell out with UBS, over pay, and joined Citibank. Within a year Citibank had discovered his fraud. What at UBS we were led to believe remained undiscovered for in excess of three years, Citi sacked him for.
This article was originally published on The Conversation under the title ‘Lie-bore: powerful bank regulators running out of excuses‘.