Town Square

Post a New Topic


Original post made by Ted Rudow III, MA, Palo Alto High School, on Jul 20, 2012

Called Libor, which that stands for London Interbank Offered Rate and it involves a group of bankers who set a daily interest rate affecting trillions of dollars of transactions around the world. Your home mortgage, your college debt, your credit card fees - these could have been affected by Libor. 20 other megabanks are now under investigation, including Citigroup and JPMorgan Chase. Open collusion with other banks to lowball or highball the rates to profit. "The New York Times" reporting, "As unemployment climbed and tax revenue fell the city of Baltimore laid off employees and cut services in the midst of the financial crisis. Its leaders now say the city's troubles were aggravated by bankers' manipulation of this key interest rate linked to hundreds of millions of dollars the city had borrowed."

What you’ve just seen is a cartel in operation, which -- not maybe -- did distort Libor for the benefits of the largest banks in the cartel. It is the largest rigging of prices in the history of the world, by many orders of magnitude. Libor is one example where we left it to banks to themselves to set important benchmarks. Many in the West are naïve about the real plight of the world. There are many who live a life of ease‚ unaware of the hurt that ravishes the world on a daily basis through man's bad choices.

Ted Rudow III, MA

Comments (3)

Like this comment
Posted by collusion
a resident of Charleston Gardens
on Jul 20, 2012 at 1:35 pm

Disgusting collusion.

Both parties are culpable in these ongoing Wall Street scandals. At least one is trying some minor reform, certainly not enough but better than handing the keys to the inmates in the asylum.

Sorry, awful analogy.

Vote Dems until the GOP at least pretends to care about the common man.

Like this comment
Posted by Solon
a resident of Old Palo Alto
on Jul 22, 2012 at 9:07 am

Can't find the details.
On what dates were the rate "wrong"? What was the numeric rate, wrong and right? Who were the winners and losers?
By how much? Was it collusion, or individual banks not self reporting correctly, for self interest?

Like this comment
Posted by Barclay's Bank - LIBOR
a resident of Portola Valley
on Jul 26, 2012 at 11:03 am

The LIBOR scandal banks are going to a Mitt Romney fundraiser in London tonight -- why isn't that huge news?

What are the reporting requirements for taking foreign money?

Romney's covering it with his Olympic insulting at the Prime Minister, covering it with his MI6 gaffe, covering it with his prancing horse. The real news is he is taking foreign money.

Why is he raising money overseas? Why doesn't anyone care?

Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.


Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: * Not sure?

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields

California Democrats seek to revive the Republican Party; Republicans expected to resist
By Douglas Moran | 28 comments | 2,624 views

Chocolate + Tahini Ice Box Pie
By Laura Stec | 0 comments | 1,000 views

Love is a Verb
By Chandrama Anderson | 0 comments | 580 views

Oh, My Aching Knees
By Max Greenberg | 13 comments | 578 views


Save $5 when you register by Monday, July 24

Registration is now open for the 33rd annual Palo Alto Weekly Moonlight Run and Walk. This family-friendly event which benefits local nonprofits serving kids and families will take place on Friday, Oct. 6 at the Palo Alto Baylands.

Register Here