Man in Business clothes being Arrested

Retail Banks Disciplined, While Central Banks Act With Impunity

12.09.2016 • Central Banks

From Kris Sayce – Port Phillip Insider (Australia) –

Over the past few years, you may have read stories about how banks have manipulated interest rates.

Take this from the Australian Financial Review in March this year:

‘How one bank, however big, might manipulate the Australian money market’s main benchmark interest rate has been the subject of much conjecture. ‘Court documents ãled on Friday by the Australian Securities and Investments Commission have offered an insight into how traders from various parts of the ANZ Banking Group shared information and facilitated the supply and demand of bank bills. ‘This allowed them to conjure up a favourable interest rate setting that allowed the bank to make millions of dollars of profit in a five minute window, it is alleged.’

You generally won’t änd us sticking up for the banks. And we’re not about to do so here.

But in our naïve world, we have long wondered what makes manipulation of interest rates by retail and merchant banks any different to the manipulation of interest rates by a central bank.

-If you want to subscribe to read more, visit http://portphillippublishing.com.au/ (paywall)(English)-

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