July 4, 2012 archive

Le Tour de France 2012: Stage 4

The Tour de France 2012, the world’s premier cycling event kicked off last Saturday with the Prologue in Liège, Belgium and will conclude on July 22 with the traditional ride into Paris and laps up and down the Champs-Élysées. Over the next 22 days the race will take its course briefly along the Northwestern coast of France through  Boulogne-sur-Mer, Abbeville and into Rouen then into the mountains of the Jura, Swiss Alps and the Pyrenees.

We will be Live Blogging Le Tour 2012 every morning at The Stars Hollow Gazette starting at 7:30 AM EDT. Come join us for a morning chat, cheer the riders and watch some of the most beautiful and historic countryside in Europe.

Abbeville – Rouen 214.5 km

Stage 4 starts in Abbeville located on the Somme River, 20 km (12 mi) from its modern mouth in the English Channel, and 45 km (28 mi) northwest of Amiens

History

St. Vulfran Collegiate Church,  AbbevilleAbbeville first appears in history during the ninth century. At that time belonging to the abbey of Saint-Riquier, it was afterwards governed by the Counts of Ponthieu. Together with that county, it came into the possession of the Alençon and other French families, and afterwards into that of the House of Castile, from whom by marriage it fell in 1272 to King Edward I of England. French and English were its masters by turns till 1435 when, by the treaty of Arras, it was ceded to the Duke of Burgundy. In 1477 it was annexed by King Louis XI of France, and was held by two illegitimate branches of the royal family in the 16th and 17th centuries, being in 1696 reunited to the crown. In 1514, the town saw the marriage of Louis XII of France to Mary Tudor, the daughter of Henry VII of England.

Abbeville was fairly important in the 18th century, when the Van Robais Royal Manufacture (one of the first major factories in France) brought great prosperity (but some class controversy) to the town. Voltaire, among others, wrote about it. He also wrote about a major incident of intolerance in which a young impoverished lord, the Chevalier de la Barre, was executed there for impiety (supposedly because he did not salute a procession for Corpus Christi, though the story is far more complex than that and revolves around a mutilated cross.)

Abbeville was the birthplace of Rear Admiral Amédée Courbet (1827-85), whose victories on land and at sea made him a national hero during the Sino-French War (August 1884 to April 1885). Courbet died in June 1885, shortly after the end of the war, at Makung in the Pescadores Islands, and his body was brought back to France and buried in Abbeville on 1 September 1885 after a state funeral at Les Invalides a few days earlier. Abbeville’s old Haymarket Square (Place du Marché-au-Blé) was renamed Place de l’Amiral Courbet in July 1885, shortly after the news of Courbet’s death reached France, and an extravagant baroque statue of Courbet was erected in the middle of the square at the end of the nineteenth century. The statue was damaged in a devastating German

The route follow through the villages hugging the coastline until it takes a left turn inland at Fécamp home of the Fécamp Abbey where Bénédictine, a herbal liqueur beverage, was developed by Alexandre Le Grand in the 19th century. It is claimed that at the Benedictine Abbey of Fécamp in Normandy, monks had developed a medicinal aromatic herbal beverage which was produced until the abbey’s devastation during the French Revolution, but in fact Alexandre Le Grand invented the recipe himself, helped by a local chemist, and he told this story to connect the liqueur with the city history and to sell his liqueur the best as possible. And so goes the way of a myth.

Rouen, Fr Then it is on the the finish in the historic capital city of Normandy, Rouen, located on the river Seine. Once one of the largest and most prosperous cities of medieval Europe], it was the seat of the Exchequer of Normandy in the Middle Ages. It was one of the capitals of the Anglo-Norman dynasties, which ruled both England and large parts of modern France from the 11th to the 15th centuries. It was here that Joan of Arc was executed in 1431. People from Rouen are called Rouennais.

Main Sights

Rouen is known for its Notre Dame cathedral, with its Tour de Beurre (butter tower). The cathedral was the subject of a series of paintings by Claude Monet, some of which are exhibited in the Musée d’Orsay in Paris. It contains a tomb of Richard the Lionheart which contained his heart. His bowels were probably buried within the church of the Chateau of Châlus-Chabrol in the Limousin. It was from the walls of the Chateau of Châlus-Chabrol that the crossbow bolt was fired, which led to his death once the wound became septic. His corporeal remains were buried next to his father at Fontevraud Abbey near Chinon and Saumur, France. Richard’s effigy is on top of the tomb, and his name is inscribed in Latin on the side.

The Cathedral also contains the tomb of Rollo (Hrólfr, Rou(f) or Robert), one of Richard’s ancestors, the founder and first ruler of the Viking principality in what soon became known as Normandy.

The cathedral contained the black marble tomb of John Plantagenet or John Lancaster, Duke of Bedford, who is considered to be Joan of Arc’s murderer. He became a canon priest of the cathedral after her death. His original tomb was destroyed by the calvinists in the 16th century but there remains a commemorative plaque .

The Gros Horloge is an astronomical clock dating back to the 16th century, though the movement is considerably older (1389). It is located in the Gros Horloge street.

Other famous structures include the Gothic Church of St Maclou (15th century); the Tour Jeanne d’Arc, where Joan of Arc was brought in 1431 to be threatened with torture (contrary to popular belief, she was not imprisoned there); the Church of Saint Ouen (12th-15th century); the Palais de Justice, which was once the seat of the Parlement (French court of law) of Normandy and the Museum of Fine Arts and Ceramics which contains a splendid collection of faïence and porcelain for which Rouen was renowned during the 16th to 18th centuries.

Rouen is noted for its surviving half-timbered buildings.

There are many museums in Rouen: Musée des Beaux-Arts de Rouen, an art museum with pictures of well-known painters such as Claude Monet and Géricault; Musée maritime fluvial et portuaire, a museum on the history of the port of Rouen and navigation; Musée des antiquités, an art and history museum with antic or gothic works; Musée de la céramique, Musée Le Secq des Tournelles…

The Jardin des Plantes de Rouen is a notable botanical garden dating to 1840 in its present form. It was previously owned by Scottish banker John Law and was the site of several historic balloon ascents.

In the centre of the Place du Vieux Marché (the site of Joan Of Arc’s pyre) is the modern church of Saint Joan of Arc. This is a large, modern structure which dominates the square. The form of the building represents an upturned viking boat and fish shape.

Rouen was also home to the French Grand Prix, hosting the race at the nearby Rouen-Les-Essarts track sporadically between 1952 and 1968. There was a campaign in 1999 by Rouen authorities to obliterate remainders of Rouen’s racing past. Today, little remains beyond the public roads that formed the circuit.

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Fireworks

Crossposted from The Stars Hollow Gazette

A story about smoking.

The big place to watch fireworks is down on the beach and one year my friends and I decided to make an event of it so we packed up a couple of cases and our portable stereo- a car battery, 250 watt car equalizer/amp, a Colecovision power supply and voltage inverter, 2 Walkman CD players, mixer board, and 4 Minimus 7s.

And a blanket.

We got there early so we’d get good seats and were only 3 or 4 rows behind the Police tape and had a fun early evening waiting for the dusk to gather amusing ourselves, scaring little children, and annoying our neighbors.

Nothing like playing the feedback.

As it got darker we switched to more mellow fare, Holst’s The Planets and Pink Floyd as I recall and soon enough the show started and we were right underneath it.

Underneath as in the shells were exploding pretty much directly overhead and showering flaming debris all around us.  A blanket a couple of rows ahead caught fire causing several moments of excitement until somebody remembered that if you just shovel sand on top these things go out.

I personally was put in mind of an old Buck Rodgers comic strip where the villain, in preparation for a duel with Buck, lies down in a field and has his flunkies howitzer him with spikey mace balls to demonstrate his courage until his chief toady right next to him gets kind of, well, squished.  Think chunks of facade landing next to the Orc captain at the siege of Minas Tirith if you’re not getting the 1930s image.

Harmless good times for the most part and it seemed only fitting that when a lit fragment landed close enough to reach without straining I fished out a Kool and kindled it off the chunk.

The difficult thing was the three hours getting out of the parking lot.

The 1st Amendement v United States Government

Cross posted from The Stars Hollow Gazette

The past Sunday constitutional lawyer and contributing editor at Salon.com Glenn Greenwald appeared with Chris Hayes on MSNBC’s “Up with Chis Hayes”to discuss the history of anonymous speech in politics and debate whether spending money is an exercise of free speech. The other guests on the panel are Maria Hinojosa, anchor of NPR’s Latino USA and president of Futuro Media Group; Rep. Peter Welch, Democrat of Vermont and member of the House Oversight and Government Reform Committee; and Heather McGhee, vice president of policy and research at the progressive think tank Demos.

Glenn also penned a scathing piece on Sen. Diane Feinstein’s (D-CA) attack on our First Amendment rights using, oh noes!, Terror! as an excuse. Glenn makes the point that Feinstein’s outrage over Julian Assange and Wikileaks is tantamount to an attack of freedom of the press.

Dianne Feinstein targets press freedom

The supreme Senate defender of state secrecy and the Surveillance State, California Democrat Dianne Feinstein, yesterday issued a statement to Australia’s largest newspaper, The Sydney Morning Herald, demanding (once again) the prosecution of WikiLeaks and Julian Assange. To see how hostile Feinstein is to basic press freedoms, permit me to change “Assange” each time it appears in her statement to “The New York Times“:

   The head of the US Senate’s powerful intelligence oversight committee has renewed calls for [The New York Times] to be prosecuted for espionage. . . .

   “I believe [The New York Times] has knowingly obtained and disseminated classified information which could cause injury to the United States,” the chairwoman of the Senate Select Committee on Intelligence, Dianne Feinstein, said in a written statement provided to the Herald. “[It] has caused serious harm to US national security, and [] should be prosecuted accordingly.”

As EFF’s Trevor Timm noted, there is no sense in which Feinstein’s denunciation applies to WikiLeaks but not to The New York Times (and, for that matter, senior Obama officials). Indeed, unlike WikiLeaks, which has never done so, The New York Times has repeatedly published Top Secret information. That’s why the prosecution that Feinstein demands for WikiLeaks would be the gravest threat to press freedom and basic transparency in decades. Feinstein’s decades-long record in the Senate strongly suggest that she would perceive these severe threats to press freedom as a benefit rather than drawback to her prosecution designs.

Under Sen. Feinstein’s premise we should have prosecuted Woodward and Bernstein and every other reporter who has exposed government wrong doing. I wonder is she would like to take on Dick Cheney for outing a CIA agent to get us into a war based on a lie, the consequences of which we will never know.  

Why Blog?

Reprinted from The Stars Hollow Gazette

I’ve always identified myself as a writer, even when it was poetry for machines and deadline dreck for newsletters, pamphlets, and flyers.

I like words and written communication better than verbal or theatrical presentations because of the random access you have to the information as a reader.  With a speech, or Radio, or a Play, TV, or Movie the information is under control of the deliverer, not the audience.  It’s inherently a serial exposition, a sales pitch, designed by arrangement and order to lead you from reasonable premises to a predetermined conclusion without allowing you to revisit the path of the argument unless you repeat the experience from scratch.

You may call reading the last chapter to find out ‘who done it’ cheating, I suggest instead that it’s a challenge every Author should be willing to face.  If you can’t make your middle memorable it’s probably better suited for a Short Story than a Novel.

So that’s what’s in it for me.  It’s a form of self expression in a broadly accessible format that’s not really very expensive except in terms of the time it takes to produce the content.

What’s in it for you?

There are 2 parts to this answer.

As a Reader only, you get to bask in my brilliance and wallow in my words and if passive entertainment suits your style I’m grateful for your eyeballs.  By that I mean you’ll get a lot more of me if you can stand it and love or hate it I don’t really give a rat’s ass what you think about me as long as you pay attention.

But the beauty part of a blog is that you can have your voice heard too.  It’s called a Vent Hole for a reason and it accepts both positive and negative feedback.  If your ambition exceeds a Tweet or two you can contribute longer pieces that I will be more than happy to evaluate and feature.  There is nothing that gives me more pleasure than promoting the work of others.

I hope that The Stars Hollow Gazette will develop into a Group Blog where regular participants as well as muse driven Authors will provide a stream of fresh content that will make us a several time a day destination.

Activism

I think that blogs are both more and less powerful platforms than conventionally recognized.  Many people have a nostalgic affection for storming the Bastille and I don’t despise those who are willing to wear no pants.

My legs are not what they once were, though that doesn’t mean I won’t ‘kilt up’ if the occasion calls for it.

I don’t think a failure to summon musket armed militia is an indication of weakness.  The information battlefield has numerous hedgerows, stone walls, and trees to snipe from behind of.  If you think it doesn’t hurt you’re not listening to the howls of outrage from the ego struck elite you ungrateful cur.

My activist brother thinks the most important function of blogs is as a source of information and a historical record, an alternative to the monopolistic media with its competitive barriers.  I think it’s equally as important to amuse and distract.  Your eyeballs are money.  Your passive consent, complicity.

I call you to a life of resistance in the small and easily done things.  Move your money.  Use cash when you can.  Turn off your lights when you leave the room and properly inflate your tires.

If just two people do it, in harmony, they’ll think they’re both faggots and won’t take either of them.

I’ve been called worse things than a stick.  Whom would fardels bear to grunt and sweat under a weary life, but that the dread of something after death, the undiscovered country from whose bourne no traveller returns, puzzles the will and makes us rather bear those ills we have than fly to others that we know not of?

Thus conscience does make cowards of us all and the native hue of resolution is sicklied over with the pale cast of thought, and enterprise of great pitch and moment with this regard their currents turn awry and lose the name of action.

In thy orisons be all my sins remembered.

Civility

No one has any obligation to treat you any particular way on the internet.

Indeed, one of the things I most despise about our inbred Versailles Village political/media culture is their false politeness and evasion of the truth.

Calling people liars and cowards and idiots is not ‘hate speech’.

Saying that Jew controlled financial, media, and political elites are stealing victory from our brave troopers and using the blood of Christian babies to make Matzoh IS.

If you can’t tell the difference between those things it’s simply useless to talk about subtleties and I won’t bother to do so.

In general however you may attribute to me personally any vice- I claim them all, particularly sloth.  If you have something new and inventive you’d care to share I’m always interested in novelty.  On the other hand you can hardly complain when I return the favor and if I happen to do it bigger and grander than you and you leave impressed…

That’s envy, my dear.  There’s a little bit of envy in the best of us.

Evolution

If you’d bother to learn anything about me at all you’d know I’m not a great believer in it.  It seems to me contrary to the Second Law of Thermodynamics.

The law that entropy always increases holds, I think, the supreme position among the laws of Nature. If someone points out to you that your pet theory of the universe is in disagreement with Maxwell’s equations – then so much the worse for Maxwell’s equations. If it is found to be contradicted by observation – well, these experimentalists do bungle things sometimes. But if your theory is found to be against the second law of thermodynamics I can give you no hope; there is nothing for it but to collapse in deepest humiliation. – Sir Arthur Stanley Eddington

But change is only to be expected, and while most of it is merely increasing entropy, intermittently self organizing systems emerge and flourish for a time.

And if you’re lucky you can be a part of it.

Happy Anniversary!

Today concludes our second year of operation at The Stars Hollow Gazette and every indication is that you enjoy our content as much as we do providing it.

It’s easy to get the impression that this site is dominated by just a few voices, but I think if you follow over time you’ll see that there are a lot of regular and semi-regular contributions.  I want to thank those people because that kind support is far more important than money.  Even casual Authors will notice that there is no piece that is not evaluated for featured status.

It relies on you.  I like to think The Stars Hollow Gazette has developed into a site of character and interest, a place you visit several times a day to read the latest and are proud to participate in.  If you feel the same I urge you to send us your eyeballs and read, link, quote, comment, and recommend.

Thank you for your kind indulgence.

Opening Day- July 4, 2010

First Anniversary on The Stars Hollow Gazette– July 4, 2011

First Anniversary on DocuDharma– July 4, 2011

Hmm… not much Anniversary specific.  How about the next day?

First Anniversary on DocuDharma– July 5, 2011

Also, TheMomCat made note of our first week of programming in Today on The Stars Hollow Gazette.

And we filled in your content with these reprints-

It’s a joy and a pleasure to provide you with a place your contributions can be highlighted and I hope you will take advantage of the opportunity to express yourself.

On This Day In History July 4

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge.

July 4 is the 185th day of the year (186th in leap years) in the Gregorian calendar. There are 180 days remaining until the end of the year. The Aphelion, the point in the year when the Earth is farthest from the Sun, occurs around this date.

On this day in 1826, John Adams and Thomas Jefferson, the second and third presidents of the United States, respectively, die on this day, the 50th anniversary of the adoption of the Declaration of Independence.

After the ratification of the U.S. Constitution, Adams was elected vice president to George Washington, and Jefferson was appointed secretary of state. During Washington’s administration, Jefferson, with his democratic ideals and concept of states’ rights, often came into conflict with Secretary of the Treasury Alexander Hamilton, who supported a strong federal government and conservative property rights. Adams often arbitrated between Hamilton and his old friend Jefferson, though in politics he was generally allied with Hamilton.

In 1796, Adams defeated Jefferson in the presidential election, but the latter became vice president, because at that time the office was still filled by the candidate who finished second. As president, Adams’ main concern was America’s deteriorating relationship with France, and war was only averted because of his considerable diplomatic talents. In 1800, Jefferson’s Democratic-Republicans (the forerunner of the Democratic Party) defeated the Federalist party of Adams and Hamilton, and Adams retired to his estate in Quincy, Massachusetts.

As president, Jefferson reduced the power and expenditures of the central government but advocated the purchase of the Louisiana Territory from France, which more than doubled the size of the United States. During his second administration, Jefferson faced renewed conflict with Great Britain, but he left office before the War of 1812 began. Jefferson retired to his estate in Monticello, Virginia, but he often advised his presidential successors and helped establish the University of Virginia. Jefferson also corresponded with John Adams to discuss politics, and these famous letters are regarded as masterpieces of the American enlightenment.

John Adams’ Death

Less than a month before his death, John Adams issued a statement about the destiny of the United States, which historians such as Joy Hakim have characterized as a “warning” for his fellow citizens. Adams said:

   My best wishes, in the joys, and festivities, and the solemn services of that day on which will be completed the fiftieth year from its birth, of the independence of the United States: a memorable epoch in the annals of the human race, destined in future history to form the brightest or the blackest page, according to the use or the abuse of those political institutions by which they shall, in time to come, be shaped by the human mind.

On July 4, 1826, the fiftieth anniversary of the adoption of the Declaration of Independence, Adams died at his home in Quincy. Told that it was the Fourth, he answered clearly, “It is a great day. It is a good day.” His last words have been reported as “Thomas Jefferson survives”. His death left Charles Carroll of Carrollton as the last surviving signatory of the Declaration of Independence. John Adams died while his son John Quincy Adams was president.

His crypt lies at United First Parish Church (also known as the Church of the Presidents) in Quincy. Originally, he was buried in Hancock Cemetery, across the road from the Church. Until his record was broken by Ronald Reagan in 2001, he was the nation’s longest-living President (90 years, 247 days) maintaining that record for 175 years.

Thomas Jefferson’s Death

Jefferson’ health began to deteriorate by July 1825, and by June 1826 he was confined to bed. He likely died from uremia, severe diarrhea, and pneumonia (?). Jefferson died on July 4, 1826, the fiftieth anniversary of the Declaration of Independence, and a few hours before John Adams.

Though born into a wealthy slave-owning family, Jefferson had many financial problems, and died deeply in debt. After his death, his possessions, including his slaves, were sold, as was Monticello in 1831. Thomas Jefferson is buried in the family cemetery at Monticello. The cemetery only is now owned and operated by the Monticello Association, a separate lineage society that is not affiliated with the Thomas Jefferson Foundation that runs the estate.

Jefferson wrote his own epitaph, which reads:

   HERE WAS BURIED THOMAS JEFFERSON

   AUTHOR OF THE DECLARATION OF AMERICAN INDEPENDENCE

   OF THE STATUTE OF VIRGINIA FOR RELIGIOUS FREEDOM

   AND FATHER OF THE UNIVERSITY OF VIRGINIA.

John Quincy Adams, the sixth President of the United States (1825-1829), was at his father’s bed side when he died. He was 7 days short of his 59th birthday

Cartnoon

The Correspondents Explain – The Economy – Trickle-Down Economics (2:40)

On Patriotism

(a reprint from our initial offerings at The Stars Hollow Gazette)

It’s an interesting coincidence that exactly 50 years after The Declaration, Jefferson and Adams died within hours of each other.  Ironically Adam’s last words were- “Jefferson still survives.”  In fact Jefferson preceded Adams which could have caused some embarrassment provided you believe in an afterlife and that Jefferson and Adams could have ended up in the same place.

Me?  Not so much.  People forget that our founders were revolutionaries and the establishment of The United States of America led to a string of more or less successful rebellions in Haiti, South America, and France.

It’s certainly not a historical leap of faith to call The Council of Europe and the Age of Metternich a reaction to a little fight we picked on the road between Lexington and Concord.

History is real, and not so very long ago.

These were people just like us.  Every bit as smart, twice as tough, and doing the best they could with the tools they had available.

Recently they’d been through 30 years of Civil War based on religious sectarianism and class warfare.  Fighting the French and Indians was kind of intermittent by comparison.

They were not rubes by any means though it’s a classic American gambit going back to Franklin at least to put a dead beaver on your head and pretend to be an idiot.  It makes the women want you.

My favorite Ben who is not a traitor was considered the head of the committee that composed The Declaration, but the principal Author was Thomas Jefferson whom we find recently to have made a last minute substitution of ‘citizen’ for ‘subject’ that I found reflective of his principles as a Founder.

Revolution is not all skittles and beer.

America had its Cincinattus and a Republic if we could keep it, but political feuding between the Democratic-Republicans and the Federalists was little short of open warfare in the election of 1800.  People were literally shot down like dogs.

Adams had to suffer Jefferson as a Vice-President (Mr. Heartbeat) and successor.  Two Term Jefferson left his office to James “Mr. Constitution” Madison and the rest, as they say, is history until AndrewKingfishJackson (but that’s a story for another day).

The democratic impulse and enlightenment values embodied in the work of our Founders, little things like the Constitution and Bill of Rights, the institutions of the Congress, Presidency, and Court have always been under attack by powerful elites who seek to influence outcomes in their favor.

The very least honor we owe these brave and principled patriots is to resist those efforts and defend justice and the rule of law to the best of our ability.

To be specific…

Why is Nobody Freaking Out About the LIBOR Banking Scandal?

Matt Taibbi, Rolling Stone

July 3, 9:04 AM ET

Most intriguingly, or perhaps disturbingly, there were revelations last week that Bank of England deputy Governor Paul Tucker had a conversation with Diamond at the peak of the crisis in 2008. The conversation reportedly left Diamond, and subsequently his traders, with the impression that the bank had carte blanche to rig LIBOR downward in order to help allay spiraling public fears about the banks’ poor financial health.



That is explosive stuff. Members of Parliament will be grilling Tucker tomorrow about those events in what is sure to be a far more combative and entertaining legislative inquiry than the Jamie Dimon dog-and-pony show we just went through here in the states in recent weeks.



Anyway, the LIBOR story is leading the front pages of most of Britain’s dailies, it’s on TV, and it’s producing blistering editorials and howls of outrage amongst politicians and activists. But as compadre Yves Smith at Naked Capitalism put it, where’s the outrage here in America?



(T)o me what’s missing from all of this is the “Holy Fucking Shit!” factor. This story is so outrageous that it shocks even the most cynical Wall Street observers. I have a friend who works on Wall Street who for years has been trolling through the stream of financial corruption stories with bemusement, darkly enjoying the spectacle as though the whole post-crisis news arc has been like one long, beautifully-acted, intensely believable sequel to Goodfellas. But even he is just stunned to the point of near-speechlessness by the LIBOR thing. “It’s like finding out that the whole world is on quicksand,” he says.

Mirabile Dictu! Barclays CEO Bob Diamond Resigns Over Libor Scandal (Updated)

Yves Smith, Naked Capitalism

Tuesday, July 3, 2012

This sudden announcement also makes it seem much more likely that serious shoes will drop at the Wednesday hearings.

Although this news has just broken, and I’m sure there will be a ton more commentary in the next few hours, I suspect the proximate cause is that Diamond’s attempts to defend the rigging of Libor during the crisis as being tacitly approved by the Bank of England was not going to fly.



In other words, Diamond was saying “you can’t really blame us for this, we told everyone and no one said no.” We’ll find out soon enough, but the effort to shift blame to the regulators may be what sunk him. Paul Tucker, the deputy governor to the Bank of England to whom Diamond spoke directly on October 28, 2012, has had subordiantes issue denials of Diamond’s account.



The other interesting side effect is that this development, that of two heads falling in short succession at the top of one of the UK’s biggest banks, the only major institution not to receive any bailout funds, will raise the visibility of the Libor scandal in the US considerably. One correspondent has said the price manipulation goes back to 2001, and if that proves to be true, this is an even bigger cesspool that the reports so far envision. And the fact that top executives have been forced to resign from a bank that cooperated in the investigations and the settlement documents said deserved to be treated with leniency as a result, raises the question of what sort of sanctions should be meted on the executives of less cooperative and presumably equally culpable institutions.

Behold, the British establishment, panicked

Paul Mason, BBC

3 July 2012

Here is the central problem with Barclays. Its business model has become heavily reliant on the kind of investment banking Bob Diamond pioneered at Barcap, a division he created and was determined to lead to global dominance until Alistair Darling impolitely stopped his acquisition of Lehman Brothers in September 2008.



The results have been felt in every community in Britain. Four years ago, Barclays was lending £52bn to non-finance, non-property businesses in the UK, 27% of all loans.

Now the figure is £38bn, and just 16% of business loans. In the process the bank – single handedly – has taken £3bn of capital out of manufacturing, more than £3bn out of retail/wholesale, while ploughing an extra £10bn into home loans and £6bn into property.



It has reduced its exposure to British business, carries a £700bn net credit risk that is only possible because of the implicit guarantee the October 2008 bailout gave to all banks. And it is:

“(a) a machine for enriching investment bankers … with £1.5 billion in staff bonuses last year versus a pre tax profit of £3billion (b) the risks to the tax payer are not offset by corporation tax, because Barclays has used losses to minimise its payments; [paying] just £113 million in UK corporation tax in 2009.”



But the crisis threatens to escalate in three directions. First to the 20 other global banks who stand accused of manipulating Libor.

The scale of class-action lawsuits being readied in the United States is, say some, big enough to sink certain of these banks. We will soon hear the results of the other – regulatory and criminal – investigations into the City of London.

Second, to the City of London itself.



(T)he management of the bank: its board, its chairman and its CEO stood accused, effectively, of negligence. Yet again London turned out to be the dodgiest place to do business, and that was why the original slap on the wrist did not work.

So now we have a third direction of escalation. Both the SEC and FSA left unanswered questions about the manipulation of Libor for “survival” reasons.



By last night, that meant the Bank of England – an institution created in the Christopher Wren era – was getting calls from financial journalists of the type normally aimed at, well, people like Bob Diamond. In short order he was gone.

Such is the power of the British establishment. But its problems are not over.

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