Libor: trustworthy?

[campbell]

Call it "parameter risk" and you're good to go!

[J_C]

where does the $450m fine for Barclay's go?

[Pseudolus]

Heard the "Planet Money" story on this. Good grief. Seems a dumbass idea in the first place to base anything important on a self-reported survey like this when there's got to be actual, you know, transactional data somewhere that could be used instead.

The email excerpts they read are astounding.

[Masked Avenger]

Originally Posted by Pseudolus

Heard the "Planet Money" story on this. Good grief. Seems a dumbass idea in the first place to base anything important on a self-reported survey like this when there's got to be actual, you know, transactional data somewhere that could be used instead.

The email excerpts they read are astounding.

[zeroEthix]

Marcus Agius was/is the Chairman of the BBA (and former Barclays chair)

[donny5k]

Originally Posted by zeroEthix

Marcus Agius was/is the Chairman of the BBA (and former Barclays chair)

Similar to how nearly everyone who has worked in a meaningful office in the US Treasury Dept also was an officer at Goldman Sachs at some point?

[MathGeek92]

amazing how insiders seem to get the posts that regulate, huh?

[satogaeru]

Rate Scandal Stirs Scramble for Damages

American municipalities have been among the first to claim losses from the supposed rate-rigging, because many of them borrow money through investment vehicles that directly derive their value from Libor. Peter Shapiro, who advises Baltimore and other cities on their use of these investments, said that “about 75 percent of major cities have contracts linked to this.”

If the banks submitted artificially low Libor rates during the financial crisis in 2008, as Barclays has admitted, it would have led cities and states to receive smaller payments from financial contracts they had entered with their banks, Mr. Shapiro said.

“Unambiguously, state and local government agencies lost money because of the manipulation of Libor,” said Mr. Shapiro, who is managing director of the Swap Financial Group and is not involved in any of the lawsuits. “The number is likely to be very, very big.”

[oedipus rex]

Originally Posted by MathGeek92

amazing how insiders seem to get the posts that regulate, huh?

well, if it wasn't an insider, people would be up in arms about how the person has no experience.

[Pseudolus]

Originally Posted by satogaeru

Rate Scandal Stirs Scramble for Damages

This could be really ugly. As LIBOR is tied into damn near everything, damn near everyone is going to be able to point to some contract, over some period of time, where they can reasonably say "the rigging cost us money". (Contracts/time periods where the rigging might have actually made them money will be quietly nudged aside.)