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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)

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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.

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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?

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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?

Sorry, but further commenting on this topic has been closed.

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