Showing posts with label Interest Rates. Show all posts
Showing posts with label Interest Rates. Show all posts

Tuesday, April 2, 2013

Major Banks Not Guilty of Libor Manipilation (So Far...)

The court system has decided that only some of the private claims against the large banks be allowed to continue litigation suing the banks that allegedly manipulated the LIBOR index.  Although some banks have admitted guilt and paid penalties, most of the alleged offenders have yet to pay any penalties. Yet again, the major players that created the current worldwide recession escape responsibility.
 
It's almost like we are in the rabbit hole - what's up is down and what's down is up.  Thing just don't make any sense.  The responsible parties have been identified.  We now know culprits - this financial bust did not happen by accident.  It was manufactured by the ones who gained the most from it's tragic results.  And they go unpunished.

Monday, January 14, 2013

LIBOR Deception...Is Finance Today's Wild Wild West ?

During the housing boom, borrowers constantly tried to get as much house as they could afford.  They wanted Interest Only loans, Adjustable Rate Mortgages, Limited Documentation, Stated Documentation, NO Documentation.  Whatever the lenders were offering that would get them into that house, get them approved for that mortgage - they went after it. 

Adjustable Rate Mortgages (or ARMs - any mortgage that the interest rate of the loan is not fixed), along with Student Loans, financial derivatives and a lot of other financial products were tied to the LIBOR index, or the London Interbank Offered Rate.  This is the interest rate one bank will loan money to another. LIBOR is used around the world as a signature index.