It is the largest rigging of prices in the history of the world by many orders of magnitude.
this is the “mega scandal of all mega scandals”, because Libor is the sun at the center of the financial universe”, and manipulating Libor means that “the whole Earth is built on quicksand.
All told, more than $800 trillion in loans, securities, and notional derivative contracts has links to LIBOR. Those securities include interest-paying investments which pension funds and other institutional investors own, making for an indirect impact on tens of millions of workers and retirees.
Because of the pervasive use of LIBOR, the benchmarks take on huge importance not only in the interest rate market, but throughout the financial world. During the financial crisis four years ago, when LIBOR soared well above the prevailing Fed funds rate set by the Federal Reserve, analysts concluded that the credit markets had come to a screeching halt with banks afraid to lend to each other. Similarly, during flights to safety that push rates on Treasury bills to artificially low levels, LIBOR serves as another gauge that can provide a different perspective on the credit markets.
Credit card holders, students, local governments, small businesses, small investors and virtually everyone else in the entire world has been impacted by the manipulation.
This is the biggest financial scam in the history of the world.
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