Comments on: Counterparties: What the Fed knew http://blogs.reuters.com/felix-salmon/2012/07/13/counterparties-the-liebor-everyone-knew-about/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: FifthDecade http://blogs.reuters.com/felix-salmon/2012/07/13/counterparties-the-liebor-everyone-knew-about/comment-page-1/#comment-41819 Sun, 15 Jul 2012 14:09:44 +0000 http://blogs.reuters.com/felix-salmon/?p=16058#comment-41819 “B: It draws, um, unwanted attention on ourselves.”

Ourselves? He of course means “…on us.” For some reason there is a growing collection of, mostly younger, people in the UK who have no idea when or where to use the reflexive. It’s just so wrong. And if they can’t get simple English right, perhaps it is no wonder that other rules are broken without much thought – just avoid getting caught, take no responsibility, just take the money – even if you don’t deserve it.

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By: coochepuma http://blogs.reuters.com/felix-salmon/2012/07/13/counterparties-the-liebor-everyone-knew-about/comment-page-1/#comment-41816 Sun, 15 Jul 2012 04:23:02 +0000 http://blogs.reuters.com/felix-salmon/?p=16058#comment-41816 All this hoopla and outrage over rigging the LiBor 5 , 10, or 30 basis points is really missing the elephant in the room.  

The “Prime Rate” is really much more relevant to the U.S.  during the past 50 years.  Until more recently the Libor is not even in the picture in U.S. consumer credit. Most credit cards and consumer loans are/were more tied to the “prime rate” which was defined as the “the rate the banks charged to the banks’ most credit worthy customers, such as the AAA companies”.  Since the late 1980’s the banks have been systematically rigging the prime rate by gradually increasing it over time so that it is now almost 300 basis points (3%) over the real “prime rate”, i.e., what the banks really charged AAA companies such as Exxon and Johnson and Johnson.  This is the banks way of picking everyone’s pocket without permission to the extend of billions and billions of dollars every year.  It is the biggest fraud in America.

Our government and the Federal Reserve actually are part of this scheme in that they redefined the definition of “Prime Rate” in the official publications rather than stopping the banks from doing this. You can check this out just by looking at the old publications from the Federal Reserve Interest Rate Series vs. the current ones.

Even attempts to correct this thru the legal system has been unsuccessful as the banks seem to have influence over the courts also (see Lum vs. Bank of America, et al).

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/07/13/counterparties-the-liebor-everyone-knew-about/comment-page-1/#comment-41804 Sat, 14 Jul 2012 08:15:27 +0000 http://blogs.reuters.com/felix-salmon/?p=16058#comment-41804 Could someone please clarify a matter for me – did Tucker give his legslative testimony this week ‘under oath’? Is so, IMO, he’s got a Whale of a problem.

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By: f.fursty http://blogs.reuters.com/felix-salmon/2012/07/13/counterparties-the-liebor-everyone-knew-about/comment-page-1/#comment-41800 Sat, 14 Jul 2012 01:19:48 +0000 http://blogs.reuters.com/felix-salmon/?p=16058#comment-41800 The Federal Reserve story, and Geithner’s role in it, is one to watch. I was surprised at the way the story broke. I think there is bad news in the pipeline and Geithner — every savvy Washington player — is trying to get ahead of it, shape the narrative that he was crying fire to others who didn’t listen. Get the docs that paint him in the most favorable light out first.

I suspect he knew a lot more than he is letting on and did nothing. There is probably some good stuff to be found by digging around. But these are experienced bureaucratic hands — far more adept than Diamond — and it’ll be interesting to see how the end up looking.

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