Tag Archives: Libor

The Most Dishonest Number in the World: LIBOR

By William K. Black

The FDIC has sued 16 of the largest banks in the world plus the British Bankers Association (BBA) alleging that they engaged in fraud and collusion to manipulate the London Inter-bank Offered Rate (LIBOR).  BBA called LIBOR “The most important number in the world.”

LIBOR is actually many numbers that depend on the currency and term (maturity) of the loan.  The collusion involved manipulating most of these rates.  A vast number of loans and derivatives are priced off of these “numbers.”  Estimates of the notional dollar amount of deals affected by the collusion range from $300-550 trillion in deals manipulated at any given time.  The LIBOR frauds began no later than 2005 and continued through 2011.

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L. R. Wray’s Appearance on “Beneath the Surface” with Suzi Weissman

By L. Randall Wray

Podcast of my August 3rd appearance on Suzi Weismann’s Beneath the Surface on KPFK. Further discussion of “Why We’re Screwed”.

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How Barclay Manipulated the Libor Rates