Josh Sigurdson talks with author and economic analyst John Sneisen about a story that really should be hitting the front pages throughout Canada.
Several Canadian banks have been accused of rigging rates to boost profit. According a class action suit by a Colorado based pension fund, for seven years, 6 Canadian banks and three foreign lenders “conspired to manipulate a Canadian interest rate benchmark to boost “illegitimate profits” on derivatives trades for several years until 2014.”
According to the suit, the banks attempted to boost earnings from derivatives trading by manipulating the Canadian Dealer Offered Rate (CDOR) which is a benchmark lending rate.
The banks include, Toronto-Dominion Bank, Royal Bank of Canada, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada, as well as HSBC Holdings Plc, Bank of America Corp. and of course the one and only Deutsche Bank.
The banks held on average more than US$1 trillion in CDOR-based swap contracts with U.S. counterparties at the time.
One could ask why banks using people’s loaned money are doing derivative trades, but more importantly, why are people using banks to a greater extent than necessary?
Deutsche Bank has been tied up in everything alongside HSBC and of course RBC and Scotia Bank are always up to no good. This looks a lot like what we saw with the Libor rigging some years ago.
These banks get away with what most would be thrown in jail for. The banks, hand in hand with government, benefit off of debt, subservience and ignorance which is why one needs to solve that problem individually by being financially responsible, rule and educate themselves.
These problems will continue to perpetuate until people learn. Responsibility is the hallmark of freedom and liberty after all.
Stay tuned as we continue to cover these issues.