THE LIBOR SCANDAL IS STILL ALIVE

The WSJ reports (subscription only) that Deutsche Bank made lucrative bets on LIBOR because it could manipulate the rate.  Naked Capitalism has the key graphs:

The documents from the former Deutsche Bank employee set out how traders in London and New York working for the German bank’s global-finance unit successfully bet that borrowing costs in euros, U.S. dollars and British pounds over three- and six-month periods would rise faster than one-month interest rates because of deepening stress throughout the global financial system.

The interest-rate bets included an estimated potential profit of €24 million for each hundredth of a percentage point that the three-month U.S. dollar Libor increased compared with the one-month U.S. dollar Libor, according to the documents.

The former employee has told regulators that some employees expressed concerns about the risks of the interest-rate bets, according to documents. He also said that Deutsche Bank officials dismissed those concerns because the bank could influence the rates they were betting on.

You won't hear anything about this from conservative talk radio or FAUX News but I did find one conservative outlet that did cover the WSJ report BUT ONLY BECAUSE CHUCK HAGEL IS ON THE DEUTSCHE BANK BOARD.