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  1. #1

    LIBOR scandal - Largest Banking Scandal in History

    TL;DR all/most/some of the top international banks are fixing markets for their own profit, allegedly.


    What it is:
    Quote Originally Posted by http://www.forbes.com/sites/halahtouryalai/2012/07/09/libor-explained-how-manipulated-rates-could-be-hurting-or-helping-you/
    So what is Libor and why does it matter? Well, for one thing, we know that manipulating any price is never a good thing for a free market. But that’s exactly what banks including Barclays are being accused of; others like JPMorgan Chase, Bank of America and Citi are being investigated as well.

    ...

    Libor stands for the London Interbank Offered Rate. It’s the rate at which banks are able to borrow money from each other. An agency called the British Bankers Association surveys a group of banks everyday asks the following: If you were to borrow money this morning at 11am London time what you would have to pay for it?
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    Quote Originally Posted by http://www.bankrate.com/financing/mortgages/the-libor-scandal-and-you/#ixzz20LgzXqMe
    Picture a couple of people in a fancy London office. Each day, they collect rate information from a panel of 16 banks and use the numbers to calculate the Libor for 10 currencies, for borrowing periods ranging from overnight to one year.

    Now, picture the bank representatives on the other end of the line providing the rate information.

    "For you ... anything. I am going to go 78 and 92.5 … if you did not want a low one I would have gone 93 at least." This is an email reply by a Barclays rate submitter to a trader who had asked the submitter to provide an artificially lower rate in 2006.

    "Done ... for you big boy," another reply by a Barclays submitter to a similar request in 2007, shows the Commodities Futures Trading Commission, or CFTC, order against Barclays.

    Barclays wasn't alone. Several other banks are under investigation.

    Did the manipulation affect the rate on ARM loans?
    It's unlikely Barclays' attempt to manipulate the Libor affected U.S. mortgage borrowers, McBride says.

    That's because of the way the Libor is calculated.

    Each day, the 16 banks surveyed provide the rate they would need to pay to borrow money on that particular day. Of the rates provided, the top and bottom four are discarded. The final numbers are based on the average of the eight remaining figures.

  2. #2
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    Banks operating to benefit themselves and their industry? Color me shocked.

    I thought shit like this was pretty much par for course for the industry. Don't oil companies, diamond sellers, etc just all play their own games in order to artificially raise their prices across the board for more profit?

  3. #3
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    Quote Originally Posted by Salodin View Post
    I thought shit like this was pretty much par for course for the industry. Don't oil companies, diamond sellers, etc just all play their own games in order to artificially raise their prices across the board for more profit?

    Yea pretty much what i came in here to say.... it's not only the banks. Supreme court is just as bad in terms of corruption.

  4. #4
    I'll change yer fuckin rate you derivative piece of shit
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    Quote Originally Posted by thetruepandagod View Post
    Yea pretty much what i came in here to say.... it's not only the banks. Supreme court is just as bad in terms of corruption.
    Corruption? Are you implying that they make rulings for personal benefit or are bribed to rule a certain way?

  5. #5
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    No sir, how dare you misconstrue what i say in such a blasphemous nature.

  6. #6
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    Awful, but entirely unsurprising. I'm not sure why some Republicans are so obsessed with "free market" capitalism. This is the shit you get, only if you completely deregulate then you have no legal recourse when you catch douchebaggery like this.

  7. #7
    I'm not safe on my island
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    I seem to be part of a minority still capable of outrage.

  8. #8
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    You're not yet jaded enough to not be surprised by shit like this? Of all people?

    At what point can I say "if i can't beat them, join them"? I complain about share holders profiting off consumers like this now, but in 20 years if I am more financially capable, I see myself joining them and clapping when they do shit like this to better their profits.

  9. #9
    Tekki's Bitch
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    Being outraged and being unable to directly do anything about it isn't a healthy lifestyle. Especially when the common man does not have unlimited resources and has to go through legal channels to do everything where as they can do as they please. It's like fighting a 4th dimensional monster.

  10. #10
    I'm not safe on my island
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    Jaded and apathetic individuals aren't useful individuals.

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    Anyone that isn't furthering space travel isn't a useful individual.

  12. #12
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    Quote Originally Posted by Salodin View Post
    You're not yet jaded enough to not be surprised by shit like this? Of all people?

    At what point can I say "if i can't beat them, join them"? I complain about share holders profiting off consumers like this now, but in 20 years if I am more financially capable, I see myself joining them and clapping when they do shit like this to better their profits.
    Your RNC card is in the mail.

  13. #13
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    Quote Originally Posted by Kuya View Post
    Jaded and apathetic individuals aren't useful individuals.
    Hope we're both still posting in 20 years, to see exactly how much change and how useful either of us has been. Among other things.

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    God. BG in 20 years. That's a scary thought.

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    Quote Originally Posted by Salodin View Post
    Hope we're both still posting in 20 years, to see exactly how much change and how useful either of us has been. Among other things.
    Putting my bet in that not one of us has done anything that, in the grand scheme of things, could be considered useful.

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    Quote Originally Posted by hey View Post
    Putting my bet in that not one of us has done anything that, in the grand scheme of things, could be considered useful.
    Dunno about you but I've helped starving children in Africa with my 10 cents a day.

  17. #17
    I'm not safe on my island
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    Why 20? I already involve myself with political activism and community outreach. Being conscious of reality is not quite the same as being an apathetic fool. One can be perfectly aware of what the facts are, and also be working on changing them. A person who is also aware of what reality is like, can also know that outrage is a useful thing for mobilizing people and setting precedents of what is/and is not acceptable.

    To me, what is important isn't that everyone in the forum know that i already knew that bankers can be shady, but rather it's important for others to know details of the issue or what can be done about it. In that sense, the OP is far more useful and informative than the rest of you have been, who have limited yourselves to letting everyone else know that you're not surprised. By golly, thanks for telling me how reality conscious you are.

  18. #18
    Banned.

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    Two things:

    1. Kuya is like pretty much the best poster on these forums anyway.
    2. I think it's hilarious that Viacom bullshit thread is getting more attention than this. People really do value their distractions, don't they?

  19. #19
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    Capitalism?

  20. #20

    What is the metric for someones usefulness? lol