Like the monsters in the campy Vin Diesel Sci-Fi romp Pitch Black, even the slightest touch of light causes the creature to shrivel up and turn to dust. So too with the global financial system. Every time we shine a light on some part of this thoroughly corrupt enterprise, it shrivels up and turns to dust.
So this isn't about Libor - this is about Lie-More
That seems to be the business model for the big global finance houses. They like to call themselves "banks," but they aren't banks in any traditional sense. They are global behemoths that are not just too-big-to-fail, but also too-big-to-regulate and too-big-to-manage. Take JP Morgan Chase for example. It has a $2.35 trillion balance sheet, more than 270,000 employees worldwide, thousands of legal entities, 554 subsidiaries and, as proved by the recent trading losses in London, a CEO, CFO and management team that has no idea what is going on in their own bank.
Let's hope for the sake of the global financial system, the global economy and taxpayers worldwide that Mr. Diamond's resignation is the first of many.