Former Fed VP James Savage takes aim at ‘Fedspeak,’ Car2Go CEO on Back2Future travel!
Welcome to Capital Account. As expected, UBS has settled over accusations of Libor-rigging, paying $1.5 billion in fines. In addition to the settlement and guilty plea from UBS’ Japanese subsidiary, regulators released details on the communications and internal emails of UBS traders. The messages were filled with colorful language, with traders calling each other nicknames including ‘Superman’ and ‘Captain Caos,’ the Wall Street Journal reported. In one instance, a UBS trader told a broker he wanted to "do one humongous deal with you," and would "pay… whatever you want" in order to secure help manipulating rates.
Though infuriating, this language is at least more straightforward than the public statements from the state-sanctioned rate manipulator, the Federal Reserve. Despite Ben Bernanke’s suggestions for improving public communication, we still hear a prevalence of ‘FedSpeak.’ For example, at the most recent Fed press conference Ben Bernanke said, “While in that circumstance the Committee would no longer be increasing policy accommodation, its policy stance would remain highly supportive of growth.” We talk to James Savage, managing partner of Reputation Leadership Group and the former VP of public affairs at the Cleveland Federal Reserve, about what is lost in ‘FedSpeak.’