While speaking this week, shamed CEO Bob Diamond claimed to have never heard of the Libor fixing until last month yet it is hard to believe that he wasn't aware of something like this. It either shows incompetence, negligence or that the banks are too large to be managed and need to be broken up to a more manageable level.
Have the banks finally reached their tipping point by going too far, too many times? I'm still not convinced because they are the government and they are the law but they're definitely in for some challenging months.
More from Bloomberg on the ongoing Libor ripoff.
Banks routinely misstated borrowing costs to the British Bankers' Association to avoid the perception they faced difficulty raising funds as credit markets seized up, said Tim Bond, a strategist at Barclays Capital.
"The rates the banks were posting to the BBA became a little bit divorced from reality," Bond, head of asset-allocation research in London, said in a Bloomberg Television interview. "We had one week in September where our treasurer, who takes his responsibilities pretty seriously, said: 'right, I've had enough of this, I'm going to quote the right rates.' All we got for our pains was a series of media articles saying that we were having difficulty financing."