Manipulating LIBOR

If true, this is of course very naughty.

FTC Capital, which is based in Vienna, claimed the banks colluded to artificially depress the cost of borrowing and limit trade in Libor-based derivatives during the period.

But do note what the allegation is. That the banks depressed LIBOR. That is, everyone with a mortgage tied to LIBOR (and yes, a number of US mortgages are tied to one or other of the US$ LIBORs) would pay *less* in interest as a result of these activities.

When these allegations first surfaced there was at least one person I saw claiming the opposite. Wonder how many will continue to do so?

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