16 Jul Salmond must say ‘enough is enough’ as Libor scandal widens
Alex Salmond should say “enough is enough” after Libor says leading financial commentator Ian Fraser IMAGE: STOCKPIX.EU
Scottish news: Salmond must say ‘enough is enough’ as Libor Scandal widens
by Jamie Mann
Award-winning financial commentator Ian Fraser, has said that Alex Salmond has the perfect opportunity to say “enough is enough”, and should plan for Scotland to build its own independent financial system and regulatory framework.
Talking to Scottish Times about the recent Libor revelations, who is also an author and financial journalist, has said that these most recent “disgraceful episodes” have exposed the “true inadequacies” of the UK’s regulatory system. He believes that if Scotland is to become independent, it would be better off developing its own monetary apparatus.
Until now, the SNP has promoted the policy of remaining within sterling and having existing UK institutions regulate an independent Scotland’s currency and financial bodies.
However, as it emerges that all of the UK’s major banks are implicated in the Libor scandal and with allegations of complicity between leading bankers, government ministers and regulators abound, it becomes increasingly likely that the SNP will be unable and unwilling to defend the status quo and instead opt for an independent financial system.
See Scottish Times article on the lastest Libor news here.
The pressure to build a go-it-alone monetary architecture will only increase as the threat of litigation against UK banks and authorities worsens. There is an increasing likelihood that the scandal will generate many thousands of lawsuits – the accumulative cost of which Mr Fraser suggests could destroy the UK’s financial system.
Evidence of Libor-fixing has already caused Barclays to be fined £300m, but a confidential note sent to clients by Autonomous Research said that the combined losses of the 16 banks involved in the scandal will be £27bn. Other estimates are higher including one analyst’s forecast of £42bn.
The UK’s ‘big four’ of Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland could see prospective costs of almost £7bn alone.
Mr Fraser, whose financial articles can be read here, pointed out that these fines may be nothing compared to the fines which could be imposed if investigations into whether banks sought to create cartels proved successful. The consequences of being found guilty of such a crime could spell the end for many banks.
You can read Ian Fraser’s articles on financial matters on his website www.ianfraser.org/
Support Our INDEPENDENCE REFERENDUM APPEAL