The new republic:Noam Scheiber on how megabanks corrupt regulators.&ldquo;Is it even possible to regulate megabanks in any meaningful sense? After all, if the allegations are true, officials at the Bank of England were not sending these hints to Barclays because they took a shine to Barclays&rsquo; executives or because they stood to personally benefit if the bank&rsquo;s share price
thenewrepublic:

Noam Scheiber on how megabanks corrupt regulators.
&ldquo;Is it even possible to regulate megabanks in any meaningful sense? After all, if the allegations are true, officials at the Bank of England weren&rsquo;t sending these hints to Barclays because they took a shine to Barclays&rsquo; executives or because they stood to benefit personally if the bank&rsquo;s share-price rose. They were doing it because they worried that a run on a bank as big as Barclays would destabilize the British economy and wanted to do everything possible to avoid that, even if it meant skirting the rules (again, according to the allegations).&nbsp;
Which is to say, in order to get corruption in your banking system, you don&rsquo;t need literal corruption of the Government Official X owns shares in Bank Y variety (or even Official X wants to work at Bank Y after he leaves government). You just need banks big enough so that the bureaucrats keeping an eye on them have nightmares about what happens if the banks fail.&rdquo;
&ndash;&ndash; Noam Scheiber, &ldquo;How Megabanks Corrupt Regulators, LIBOR Edition&ldquo;&nbsp;

ataxiwardance: Corporatist&nbsp;privilege is so integrated into our global financial system that regulators simply understand their role as enablers of a recalcitrant hegemony, rather than policemen over an open market. The new regulatory capture! No bribes required.
This is really where Occupy and Anti-Statists intersect.
I might also recommend Matt Taibbi&amp;#8217;s recent post on the LIBOR scandal.