"Oh what a tangled web we weave,
When first we practise to deceive."
Sir Walter Scott, Marmion
This is the credibility trap for government regulators and officials who have played fast and loose with market manipulation when it suited their purposes in the past.
I wonder if Jamie Dimon has similar 'dirt' on the Congress and the regulators. JPM would be in a good position for that, given their past involvement with the Exchange Stabilization Fund and their major role in the metals markets.
The power brokers say that bribery is good, but blackmail is better, more reliable. And so it may be.
Let's see if Mr. Diamond can intimidate the British Parliament and make them dance to his tune. He has certainly thrown down the gauntlet as they say.
Barclays chief threatens to hit back
By Patrick Jenkins, Brooke Masters and George Parke
Bob Diamond is threatening to reveal potentially embarrassing details about Barclays’ dealings with regulators if he comes under fire at a parliamentary hearing on Wednesday over the Libor rate-setting scandal, according to people close to the bank’s chief executive.
“If he is attacked, he will fight back,” said one person familiar with preparations for the Treasury select committee hearing...
Read the entire story here.