July 25th, 2012
(ZeroHedge) – Banks have been caught manipulating the benchmark for $800 trillion in financial instruments with the blessing full blessing of the FED and the Bank of England.
Please note this is a developing story. Barclays is not alone. More banks are involved and more central regulatory authorities new about the scam. It is also clear that the rate is still being manipulated given the artificially low rate despite the global debt crisis.
Since (at least) 2005, Barclays has been manipulating LIBOR, and their traders have been allegedly pocketing $40MM a day betting on interest rate derivatives. If the LIBOR, one of the most fundamental metrics of our banking system can be rigged, can you imagine what other elements of our financial system are a fraud? This morning’s comments from European regulators appears to confirm that this story has a long way to go as ECB’s Almunia states: “The evidence we have collected is quite telling so I am pretty sure this investigation will not be closed without results.”