Rate-rigging and central-bank speak
CNB Vice Gov. Vladimír Tomšík was just as passionate on OVM yesterday in defending the Czech banking system against suspicions of interest-rate rigging as he was in explaining the devaluation of the crown in the same seat 17 months ago. The CNB takes the allegations of manipulation seriously, he assured viewers, but then he lapsed into some typical central-bank speak showing that he doesn't in fact take it very seriously at all. Czech banks acted responsibly during the crisis, he said, and they voluntarily created a certain level of capital and liquidity; they were prudent and consulted many steps in advance with the regulator, and the public didn't have to put a single crown into them. Okay, but what does that have to do with the allegations of interest-rate rigging? "And then all of a sudden, after the crisis ended," Tomšík said, "a high-level official casts doubt on the credibility of these banks in setting market interest rates?" Is Tomšík's message that the banks behaved responsibly during the crisis, so now they get to screw their customers as a reward?
Glossary of difficult words
to rig something - to manage or conduct something fraudulently so as to produce a result or situation that is advantageous to a particular person;speak - denoting a manner of speaking, characteristic of a specific field or group;
to lapse into - to revert to (a more familiar style of speaking or behavior);
prudent - acting with or showing care and thought for the future;
to screw someone - to cheat or swindle someone.