What Happened To Honesty?
The Libor scandal has been in the news quite of late. This has to do with how interest rates around the world are set since many financial institutions use it as reference. Libor is short for London Interbank Offered Rate. There is a formula for how it is derived. Like anything else if there is a collusion among those participating in setting the rates it can get screwed up.
Barclays Bank was the first investigated and fined; other banks around the world are now under investigation. There seems to be
common knowledge that it was being manipulated. Yet authorities did not seem to act quickly enough to stop it. This happened between 2007 and 2010. That’s quite a long time. The banks involved just kept mum.
This is a case of dishonesty. Not by just one bank but by around 12 and these are big name banks like JP Morgan, HSBC, CITIBANK…
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