Weekly Roundup 7/17/2012

Crooked Bankers Are Corrupting Government: The Real LIBOR Story
Richard Eskow, Huffington Post, July 11, 2012

Synopsis: The truly alarming financial news is not that banks manipulate the LIBOR  -- the interest rate banks charge other banks -- says Eskow, a writer for a liberal advocacy group. The big story is that politicians, regulators and financial journalists ignored the immoral and damaging practice.

Takeaway: "Reports say that the Fed knew about Barclays' deception back in 2007" but nevertheless "rescued Barclays and its executives with nearly a trillion dollars in publicly backed loans,” Eskow writes. “That means that Barclays probably made billions off the reduced interest rate alone, courtesy of the American people...after [the Fed] learned that the bank was lying."

For more, see our reports on "Financial Misconduct," Jan. 20, 2012, and "Financial Industry Overhaul," July 30, 2010.

-- Marcia Clemmitt, Staff Writer

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Amid Reports of Ineptitude, Concerns Over Security at London Olympics
John F. Burns, The New York Times, July 15, 2012, p. 10

Synopsis: Two weeks before the start of the London Summer Olympics, security experts, whistleblowers and even government officials say security plans are in complete disarray.

Takeaway: The problems go far beyond the shortfall in private security guards, which will now be filled by Britain’s armed forces. For example, recruits repeatedly failed to spot fake bombs and grenades during X-ray training, and cleared people through security without spotting hidden weapons.

For background see “Hosting the Olympics,” CQ Global Researcher, July 3, 2012.

-- Thomas J. Colin, Contributing Editor