In 2002 Guantanamo Camp was set up as a camp for "illegal combatants", international terror suspects. Like any government's initiative it started a life of its own: jobs and income depend on it including those of most influential companies. For example Halliburton, a US company whose CEO was once Dick Cheney, the US Vice-president at the time when Guantanamo Camp was established, was awarded a $1 billion construction contract to revamp the Camp in 2005.
After a decade there are no longer "illegal combatants" roaming the world, waging the war against the US. There is a little operational case - to justify the expense - for Guantanamo Camp as a place for detention of international terror suspects. So what next for Guantanamo Camp? Is such a lucrative place of income for many influential defence businesses going to be closed? Or is it more likely that a large US company will get a lucrative contract for another revamp or even for running its operations?
Here the LIBOR scandal may come quite handy. Whilst we may be cynical about the capitalism in the US, especially in its current form of the "communism for the rich", the US has an impressive track record in prosecuting the financial fraudsters. From Charles Ponzi in the beginning of the 20th century to more recent perpetrators of the financial wrongdoings behind WorldCom, Enron, Tyco and "NatWest three" scandals. Not that long ago Bernie Madoff experienced the decisive side of the US justice.
It appears it is only a matter of time when the US justice system will start catching up with those behind the LIBOR scandal. In a recent interview on the BBC Radio, Prof Alan Riley from City University Law School said:
"Any fixing of the LIBOR rates is prima facie criminal price-fixing and the United States extra-territorial jurisdiction applies even to price-fixing in London. If price-fixing is proved the US authorities may well seek extradition of executives based in the United Kingdom. Given the effectiveness of the US criminal antitrust regime (in which over 25,000 prison days were handed down in 2009), compared with the failure to secure any home grown price-fixing convictions in the UK under Section 188 of the Enterprise Act 2002 (the Cartel Offence), it is much more likely that US authorities will successfully prosecute bankers than the British authorities".
As the number of individuals involved in the LIBOR scandal is significant the Guantanamo Camp may become handy. The prospect of extraditions to the US is not purely theoretical. Indeed a number of City folk are already taking legal advice on that. And those who do not - who were involved in the LIBOR "business" - should think about it.
Very droll. Let us hope the US can convict those we have so singularly failed to but one has to ask why is it they Americans are so willing to focus on our banks rather than their own? Is this really just another extension of financial warfare? I would like to see them all go to prison but I have a feeling the US elite is just picking and choosing. Geithner is every bit as guilty as Bob Diamond, Corzine, Dimon, et al. When they all get sent to Guantanomo, along with the Natwest 3, we will know the US justice system has justice at its heart and not the interests of the US bankers. Remember there is an election just around the corner and one scapegoat is as good as another.
ReplyDeleteHi Schweik
DeleteThis is true that American focus on our banks. And it may well be the case that this is about weakening the "competitive edge" of the City. (I put "competitive edge" in quotes as it is really a high degree of impunity the financiers can commit the financial crimes here which are no longer acceptable in the US.)
On the other side the US is quite effective in putting their own fraudsters behind bars, as Prof Riley said. Far more than we here. WorldCom, Enron, Tyco convicts were all American.
Best, Greg
Then let's keep our fingers crossed! I have been waiting for these guys to be put behind bars for about five years as have many hundreds of thousands of other people I guess. Justice cannot come too soon for these fraudsters.
ReplyDeleteHi Greg! I don't want to teach you how and what to write since your fantastic blog opened my eyes for the whole crime going on, but I will allow myself to suggest a better wording: instead of LIBOR scandal it should be LIBOR crime, fraud or something like that. Scandal is when footballer cheat on his wife, but this is a crime on a huge scale. Best wishes and write more often.
ReplyDeleteHi Mishoni
ReplyDeleteThanks for feedback! I share your point, but... on the other side others were complaining that I write in too straight-forward manner, take no prisoners, etc. For me it really does not matter as long as the readers understand what I write. So maybe I stick to writing in a direct manner but being a bit soft with choice of words.
Best, Greg
Greg..here's an interesting one for you on the same topic...did you know that Standard Chartered (in news today for criminal activity) bought Wachovia Bank after it had been revealed that Wachovia was up to its neck in illegal activity? Don't you think it strange that a British bank would buy an American one, knowing its books were being cooked and that it was up to its neck in corruption? Do you think it is possible that they bought Wachovia BECAUSE they knew it had dirty business going through it and that it could also make some money out of these 'customers'? I read about this purchase with open mouthed amazement and now that I see Standard Chartered in court for illegal activities it strikes me that this bank is simply a HUGE vehicle for embezzlement and fraud.
ReplyDeleteHi Schweik
DeleteThanks for that. I did not know these details. "Strange"? Maybe. But someone must have made loads of money on it:-)
Best, Greg
Correction not Wachovia but American Express Bank International (subsidiary of American Express)
ReplyDeletehttp://www.bloomberg.com/news/2010-07-07/wachovia-s-drug-habit.html