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Banks Sued for LIBOR Collusion Again!
Key Excerpts from Article on Website of Rolling Stone


Rolling Stone, July 26, 2019
Posted: August 12th, 2019
https://www.rollingstone.com/politics/politics-features/bank...

Two summers ago, the head of Britains Financial Conduct Authority, Andrew Bailey, made news when he announced that LIBOR the leading benchmark for setting global interest rates had a sustainability issue. The rate is supposed to measure the rate at which banks borrow from each other, but Bailey said it wasnt based on real borrowing. LIBOR, the London Interbank Offered Rate, helps set rates for hundreds of trillions of dollars worth of financial instruments. If Bailey was right, it meant a sizable portion of global economic activity rested on magical thinking. A secondary concern involved manipulation. If banks were inventing numbers to submit to the LIBOR committee, could they not also be manipulating rates to line pockets? The possibility ... seemed to exist that the worlds major investors including localities and pension funds were being systematically ripped off. A class of investors and retirement funds including Putnam Bank and the Hawaii Sheet Metal Workers Pension Fund did recently bring an antitrust suit alleging just such a scheme. The July 1 complaint is an amended version of a class action suit originally filed earlier this year. The action against JP Morgan Chase, Bank of America, Citigroup, Barclays, and numerous other banks uses both documentary evidence and data to argue that banks have been purposefully depressing interest rates. The idea would be to lower payouts to investors who are contractually due to receive LIBOR, while lessening costs for LIBOR borrowers.

Note: For more along these lines, see concise summaries of deeply revealing news articles on financial industry corruption from reliable major media sources.


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