From the Daily Beast
Sources said Wednesday that U.S. officials are investigating whether some of the world’s biggest banks worked together to understate their own borrowing costs before and during the financial crisis—affecting trillions of dollars in loans and derivatives. The borrowing costs are used to calculate the London interbank offered rate, or Libor, and for the past year, law-enforcement officials have been investigating if banks effectively formed a global cartel and coordinated how to report borrowing costs between 2006 and 2008. The investigation is being led by the U.S. Justice Department and the Securities & Exchange Commission. Roughly $10 trillion in loans and $350 trillion in derivatives are tied to Libor, which affects costs of everything from corporate bonds to car loans, and if the rate was kept artificially low, then borrowers were not likely to be harmed—meaning struggling banks would not have to answer questions about their practices.
Sources said Wednesday that U.S. officials are investigating whether some of the world’s biggest banks worked together to understate their own borrowing costs before and during the financial crisis—affecting trillions of dollars in loans and derivatives. The borrowing costs are used to calculate the London interbank offered rate, or Libor, and for the past year, law-enforcement officials have been investigating if banks effectively formed a global cartel and coordinated how to report borrowing costs between 2006 and 2008. The investigation is being led by the U.S. Justice Department and the Securities & Exchange Commission. Roughly $10 trillion in loans and $350 trillion in derivatives are tied to Libor, which affects costs of everything from corporate bonds to car loans, and if the rate was kept artificially low, then borrowers were not likely to be harmed—meaning struggling banks would not have to answer questions about their practices.
Where I got my numbers for the 58.14 Trillion in World GDP
It is as if the entire output of world wealth is being leveraged 6 to 1 against us.
I'm no expert but I think the 10-Trillion in loans is what congress is trying to give to the bankster institutions. The rest will hang over us for a long time.
ReplyDeleteThis money doesn't even exist but we will take the hit as regular citizens of this country to pay for this. Not just us in the US, the rest of the world will pay the price for these fraudsters who have redistributed wealth to the top to gamble with it against us. Where am I going wrong with this? Can anybody tell me why this is a good thing?
ReplyDeleteNo Tom, I'm with you on this one....That's how flagrant and bad it is.
ReplyDelete