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Invented in 2009, its supply supposedly is controlled by a rigid computer program, making it, like gold, not subject to central bank manipulation.
Mixing in Keynesian stimulus -- that is, a combination of public spending and central bank manipulation of interest rates -- he played a big role in developing a forecasting model still used by the Federal Reserve and by private forecasters.
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But in recent months, Goldman has steered clear of the negative finance coverage dominating the headlines, most notably the huge trading losses at JPMorgan Chase and the growing scandal involving certain banks' manipulation of interest rates.
But with the continuing investigation into banks' manipulation of a key interest rate — the London interbank offered rate, or Libor — the risks were high that Mr. Tucker might be caught up in the scandal once again.
The Austrians led by Mises offer a compelling alternative explanation in which booms and busts are caused by central-bank manipulation of interest rates in vain attempts to stimulate or stabilize the economy.
There are unanticipated and unintended consequences from the central banks' manipulation of interest rates.
The New York Times business section on 12 July shows multiple exposes of systemic fraud throughout banks: banks colluding with other banks in manipulation of interest rates, regulators aware of systemic fraud, and key government officials (at least one banker who became the most key government official) aware of it and colluding as well.
A new class action was started on July 6 against Barclays and other Euribor panel banks alleging manipulation, and the bank and a current and former director have been named as defendants in a pending class action for its role as a Libor contributor and alleging mis-statements in past annual reports.
The 231-page statement is part of his case for wrongful dismissal, claiming the bank condoned manipulation of the rate and sought out scapegoats.
In other words, the outsized bets were enabled by the bank's manipulation of its own financial controls to downplay risk.
Diamond will still appear before MPs on the Treasury select committee on Wednesday where he is expected to face tough questioning about when he knew about the bank's manipulation of the London inter-bank offered rate (Libor).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com