LIBOR: the ‘mega-scandal of all mega-scandals’ is upon us
Madison Ruppert, Contributor
Friday, July 6, 2012
The London Interbank Offered Rate, or LIBOR, scandal is growing by the minute and is shaping up to be one of the largest, if not the single largest, financial scandals of all time. This has the potential to make the massive conflicts of interest at the Federal Reserve and the $16 trillion in “emergency loans” given out by the Federal Reserve look reasonable.
For the uninitiated, as it were, the scandal centers on British financial institution Barclays, the former CEO of which testified yesterday before the British Parliament.
Bob Diamond’s testimony on July 4, 2012 was almost painful. Diamond fell back on the incredibly tired excuses used by the criminals in the financial sector which were accurately summed up as “a long version of ‘It was awful, but don’t blame me.’”
LIBOR is, to put it in a crudely simple fashion, is the fluctuating rate at which banks can borrow from each other. However, this isn’t just a rate which affects UK banks.
Indeed, the LIBOR is used as an indicator for many of the world’s various fluctuating rates spanning a wide range of so-called “financial products.”
This is because the LIBOR is used as a rough indication of the level of confidence between one bank and another, with high rates indicating a low level of confidence and uncertain financial stability.