We've actually reached the point where crimes are openly dicussed and it is acknowledged that nothing will de done.

http://finance.yahoo.com/blogs/daily-tic....

Quote:

The LIBOR scandal is "so big I don't think people have got their minds around it," says Jim Rickards, a partner at JAC Capital Advisors and author of Currency Wars: The Making of the Next Global. "This is the largest financial scandal I've seen in my career."

If $500 trillion of swaps are based on LIBOR and the rate was manipulated by 10 basis points over five years, that's $2.5 trillion of fraudulent transactions -- more than the combined capital of the nation's five largest banks, Rickards explains. "Congress may have to step in to limit the damages because it would threaten the banking system."

Led by the City of Baltimore, several U.S. municipalities have already filed lawsuits, seeking damages for interest rate swaps that were pegged to LIBOR, The NY Times reports. Analysts at Nomura Equity Research warn banks could be liable for "tens of billions" in related claims, while Morgan Stanley estimates the tab could be $22 billion.

Meanwhile, Rickards boldly claims Geithner could face "criminal liability" for failing to refer LIBOR manipulation to the Justice Department or FBI. "A fraud is a crime," he continues. "You can't witness a crime and not call the cops. Geithner might be guilty of aiding and abetting a crime."

Pressed on this, Rickards concedes it's highly unlikely Geithner will be charged with anything -- "the Justice Department will finesse it," he says. But that won't stop members of Congress from trying to score political points and put Geithner (and Bernanke) in the hot seat in the days and weeks ahead.

Quote:

"A fraud is a crime," he continues.

True.

Quote:

"You can't witness a crime and not call the cops. Geithner might be guilty of aiding and abetting a crime."

Aiding is helping and abetting is instigating. Witnessing a crime and not calling the cops is neither of those. That's perfectly legal.