Libor Update

Banks are under attack from all quarters. The manipulation of interbank offered rates - on the basis of which gigantic sums are lent and borrowed - has prompted a rabid response from politicians. Regulators and central bankers have joined in the hue and cry with free-ranging judgments about what is socially acceptable banking. Calls for "culture change" have echoed around London and beyond. Once again, smashing the banks into tiny and ostensibly safer pieces is the idea of the moment. Before politicians get the hammer out, however, they should take pause.