market manipulation and sports March 6, 2014Posted by Bradley in : governance , trackback
The UK Treasury has published a news release with the title LIBOR funds to support first Invictus Games in London (details of other payments from the fund to support armed-forces related projects can be seen here). According to the press release the Chancellor said:
I am pleased that we have been able to support the very first Invictus Games in London using the LIBOR fund. We’re using money raised from fines on those who demonstrated the very worst of values to support the very best of values, injured service personnel from around the world. This landmark event will be a real inspiration for future generations.
I have never really understood the rationale for applying these funds in this way. It seems to me that the Government has an obligation to support the armed forces in all sorts of ways and that relying on the happenstance of funds derived from fraud is not the way to go about providing the support. Then again, linking the two quite separate things almost makes it sound as though it was a good thing that people manipulated Libor over many years. What will the UK Government fund with proceeds from the investigations into manipulation in the foreign exchange market, I wonder? Early childhood education? Food banks? The dredging of canals? From this perspective we could say we need more fraud to help more people. But that can’t be right, can it?