Libor: The Largest Insider Trading Scandal Ever…”We earn money the old fashioned way… we steal it.”
by George Washington
Among other things, the Libor scandal is the largest insider trading scandal of all time.
It also shows that the big banks are literally rotten to the core. And see this.
UC Berkeley economics professor and former Secretary of Labor – Robert Reich – explains today:
What’s the most basic service banks provide? Borrow money and lend it out. You put your savings in a bank to hold in trust, and the bank agrees to pay you interest on it. Or you borrow money from the bank and you agree to pay the bank interest.
How is this interest rate determined? We trust that the banking system is setting today’s rate based on its best guess about the future worth of the money. And we assume that guess is based, in turn, on the cumulative market predictions of countless lenders and borrowers all over the world about the future supply and demand for the dough.