That the FSA is now saying many banks were at this game does not surprise me at all. I described on Friday why I never trusted Libor rates so did not use them. Many people however had to use Libor or Libor based instruments not just in London but worldwide. Its a self inflicted disaster! It also takes the pressure off the Eurozone in London but not of course in Europe.
Reuters reports, " ESM bond buying in secondary markets would require unanimity and that seems unlikely because Finland and the Netherlands are against it, the Finnish government said a report to a parliamentary committee.
The report gave no explanation for the apparent volte-face but EU diplomats noted that a Finnish proposal that Spain and Italy should issued covered bonds, backed by state assets or future revenues, to avoid Helsinki having to demand collateral for any bailout loans, failed to find agreement last week.
However Prime Minister Jyrki Katainen's spokesman said the ESM stance had nothing to do with others blocking Finland's proposal. Helsinki simply did not consider secondary market purchases an effective way to the crisis, he told Reuters"
So the latest Eurozone rescue is starting to unravel just like all the previous rescues. Surely sooner or later UKIP will capitalise on these serial failures.