Barclays, LIBOR and Banking Culture
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The more the world learns about international banking, the more it looks like a "cheating culture." We hear about the growing LIBOR scandal and what it could mean for $350 trillion in contracts from multi-national business and municipal government down to mortgages and student loans. Also, the showdown deepens between Egypt's president, the military council and the courts, and another battle over how far the Bush tax cuts should be extended.
Banner image: Bob Diamond, then-CEO of Barclay's UK, speaks at the World Economic Forum Annual Meeting in Davos, Switzerland, January 27, 2012. Photo by by Moritz Hager, courtesy of the World Economic Forum/flickr
Showdown Deepens Between Egypt's President, Military Council, Courts ()
A confrontation appears to be escalating between Egypt's newly elected President, Mohamed Morsi, and institutions still run by the country's military regime. Yesterday, Morsi ordered Parliament to re-convene. But today, the constitutional court refused to reconsider its order dismissing that body. Kareem Fahim, Middle East Reporter for the New York Times, joins us from Cairo with an update.
The LIBOR and Why It Matters ()
The London Interbank Offered Rate, or LIBOR, is what banks charge each other to borrow money, and it's not just for financial wonks and accountants. It's also used as a benchmark to set rates for $350 trillion in contracts: commercial loans, home loans, car loans and credit cards, including yours. Now it turns out that major banks may have manipulated the LIBOR for their own profit. Are they being run by a "cheating culture?" Would regulation of the latest global financial scandal help or should bankers be required to risk their own money, not everybody else's?
- Kara Scannell: Financial Times, @KaraScannell
- George Nilson: City of Baltimore
- William Cohan: Bloomberg, @williamcohan
- David Callahan: Demos, @Demos_Org
- Alex Pollock: American Enterprise Institute, @AEI
Red State-Blue State
Obama and Romney Try Framing Tax Cut Debate ()
President Obama repeated a familiar proposal today: when the Bush Tax Cuts expire at the end of the year, they should be extended — but only for those making less than $250,000 a year. Mitt Romney and other Republicans call this a massive tax increase at the worst possible time. We hear more from senior political writers Wayne Slater with the Dallas Morning News and Carla Marinucci with the San Francisco Chronicle.
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