The Biggest Banking Scam Ever
Jul 7, 2012 20:25:01 GMT -5
Post by popcorn on Jul 7, 2012 20:25:01 GMT -5
The Biggest Banking Scam Ever 
British bank Barclays (LSE: BARC.L - news) is dead centre of a storm involving the manipulation of inter-bank lending rates, particularly Libor (the London Inter Bank Offered Rate).
What is truly breath-taking is the sheer scale of this fraud.
According to one estimate, around $350 trillion (£223 trillion) of lending and derivatives is priced off Libor. That’s enough to pay for the whole of UK Government spending for around three centuries at current levels. Thus, if misconduct by banks caused Libor to increase by a mere one tenth of one basis point (0.001%), this amounts to $35 billion (£22 billion) a year in extra interest – that’s roughly the UK’s annual budget for transport and close to as much as council tax brought in last year.
uk.finance.yahoo.com/news/biggest-banking-scam-ever-141604082.html
More on this:
A new nightmare on Wall Street? U.S. banks face criminal probe into global interest rate-fixing scheme as Barclays blows the whistle on America's financial giants
Some of America's top banks are set to be dragged into a major criminal investigation of a global interest rate-fixing scandal about to engulf some of Wall Street's biggest institutions.
The worldwide probe centres on claims traders at Barclays colluded with rival banks to keep interest rates at levels to their benefit.
Barclays agreed to pay a whopping $453million in fines to the U.S. Justice Department and the UK's Financial Services Authority.
But it emerged tonight the bank had struck a deal of 'extraordinary co-operation' with regulators in Washington and London - potentially exposing collusion on interest rates among banks across the globe.
Read more: www.dailymail.co.uk/news/article-2166198/Libor-scandal-Barclays-blows-whistle-Americas-financial-giants.html#ixzz1zzSLIKXT
British bank Barclays (LSE: BARC.L - news) is dead centre of a storm involving the manipulation of inter-bank lending rates, particularly Libor (the London Inter Bank Offered Rate).
What is truly breath-taking is the sheer scale of this fraud.
According to one estimate, around $350 trillion (£223 trillion) of lending and derivatives is priced off Libor. That’s enough to pay for the whole of UK Government spending for around three centuries at current levels. Thus, if misconduct by banks caused Libor to increase by a mere one tenth of one basis point (0.001%), this amounts to $35 billion (£22 billion) a year in extra interest – that’s roughly the UK’s annual budget for transport and close to as much as council tax brought in last year.
uk.finance.yahoo.com/news/biggest-banking-scam-ever-141604082.html
A new nightmare on Wall Street? U.S. banks face criminal probe into global interest rate-fixing scheme as Barclays blows the whistle on America's financial giants
Some of America's top banks are set to be dragged into a major criminal investigation of a global interest rate-fixing scandal about to engulf some of Wall Street's biggest institutions.
The worldwide probe centres on claims traders at Barclays colluded with rival banks to keep interest rates at levels to their benefit.
Barclays agreed to pay a whopping $453million in fines to the U.S. Justice Department and the UK's Financial Services Authority.
But it emerged tonight the bank had struck a deal of 'extraordinary co-operation' with regulators in Washington and London - potentially exposing collusion on interest rates among banks across the globe.
Read more: www.dailymail.co.uk/news/article-2166198/Libor-scandal-Barclays-blows-whistle-Americas-financial-giants.html#ixzz1zzSLIKXT
