I will write briefly on that, for me the LIBOR scandal is not sometimes that surprises me.
And this is not because of the »greedy bankers » complex but more because the banking industry is the antithesis of free markets and sound money.
In fact, central banking is a good way to socialize the risks by the state while rewarding mediocrity and decisions based on short-term.
But then, politicians usually love to think in a short-time scale until their next election. If somebody in any »normal » business think short-term, he business will probably not go very far.
Who needs to have responsability when the state will give me a bailout when things go wrong.
Also, more regulation in this sector only brings ONE thing at the end, more and more cronyism and more actors in the »too big to fail » category.
It’s like if you someone give you five million dollars once in your life as a gift and says, even as this is a gift to you, I don’t really care if you spend it all on the first six months as the state will protect you.
And free banking is about polling of funds and this based on sound money, not about being a game of who will be biggest crony to the state.