Friday, July 08, 2011

Huh. Now that is mildly interesting.

Remember a few weeks ago I asked why the LIBOR kept falling? Here.

Trading Firm Accuses Bank of America, JPMorgan, UBS, and Citigroup of Conspiracy to Manipulate LIBOR


Davis Freeberg said...

I wish I could say that this is something new, but every since I've been in finance, I've always heard that LIBOR is a bogus number. The problem is that only a handful of banks actually get a say in what it is and because those banks tend to have tons of loans tied to LIBOR, they tend to play games with the "auctions" that they don't have to consummate. Think of it like a small town with only two gas stations. The price of oil might come down, but you're not going to lower the price unless the other guy does and the other guys not going to do it unless you do, so there is a sort of unspoken collusion that goes on.

she said: said...

Yeah. It isn't news the market is manipulated. It's just magnified because the administration is meddling in everything with economic vaporware. If the market were less dysfunctional it wouldn't matter as much I guess.