July was a desperate
month for some of the worlds biggest banks. Bob Diamond, the former chief executive of
Barclays, answering questions about the rigging of Libor rates, found members
of a UK Commons Treasury select committee raising doubts about
his capacity for accurate recall. Quite aside from the furore
about what Bank of England deputy governor Paul Tucker meant and who said what to
whom about Libor in the teeth of the crisis, there is clear
evidence of a cartel of traders at Barclays and several banks
attempting to rig the interest rate derivatives markets in ways
that carry the worst echoes of Ivan Boesky in the 1980s.
At JPMorgan, chief executive Jamie Dimon had to confess that
the firm had previously overstated its first-quarter net income
by $459 million and was now restating its numbers because of
new doubts over some traders marks on the infamous...