As the above articles demonstrate, all is not well with Libor. Libor is the ‘London InterBank Offer Rate’. It’s set by the British Bankers Association BBA at 11 am each day. It looks as if the banks have been manipulating it. Really there should be no surprise about this – banks can’t be trusted. Of course the damage is being done to the small businesses that are locked in Interest Rate Swaps and other toxic instruments. We hear that there are worried bankers…..already working on defences. The head if the BBA has already ‘retired’ Though the BBA point out this is unconnected. It could be an interesting summer. Watch this space.
As predicted this story has broken. Barclays have a been fined £290m for systematic abuse of Libor. They didn’t act alone….whose next?