The Former Sheriff of wall street speaks.....

[truth on hold]

Spitzer's desperate, been trying to make amends for his hooking up with prostitutes while on official state business. First his CNN show flopped, and his next move is to keep beating the Wall Street dead horse.

 

fact is this is not "huge" at all. Most consumer loans and fixed income investments are not LIBOR based. And even in those cases that are we're talking about at most 1 - 2 bps degree of skew ... for those scoring at home thats 1/100th to 2/100ths of a percent. And for every borrower that paid another bp in interest, an investor received another bp in interest income ... zero sum game. Will the benefactors be asked to give the bp back?

 

It sounds like a common and known practice in the insitutional bank market where everybody knew what was going on, and everyone played the game too. LIBOR is not an observed level, it's derived from estimates submitted daily by banks. of course there's going to be some fudging going on.

 

Get back to work everyone, and accept you'll have to pay your mortgage off the good old fashioned way. Don't expect Chase to forgive a nickel of it over this.

 

Just press cretins like Spitzers trying to create controversy and generate media interest, and showboating politicians.

[GG]

He says the LIBOR scandal is huge!

 

http://finance.yahoo...-132610929.html

 

Bullcrap.

 

• State Attorneys General in New York and Connecticut are investigating whether states incurred losses because of LIBOR manipulation which "could lead to a wider multi-state enforcement action," The WSJ reports.

How can the states suffer losses if the banks underreported LIBOR? That means that the states' and everyone else's borrowing costs were lower than what they should have been at the time because the banks were offering an artificially low rate. In effect, the banks were subsidizing the interest rates. Mervyn King is a liar for saying he wasn't aware that LIBOR was lowballed in 2008. It was plainly obvious to everyone, and seen as one of the ways to forestall a financial collapse. This isn't huge, this is ridiculous for governments & regulators to come back and slam banks for activity they tacitly supported 4 years ago.