I put news about this up once already and had someone spend hours attempting to give an experienced Mortgage Loan Originator Fiduciary Lessons.
Well...it looks like school's out.
From the Article: "Despite being set in London, the LIBOR is the average interest rate agreed by the world's largest international banks and indexes the short and long term interest rates for 10 currencies across 15 different time zones.
Treasury Secretary Tim Geithner has been called in front of the Senate Banking Committee as he faces questions about what level of knowledge the U.S. Government had over the LIBOR
The LIBOR impacts every financial service and product across the planet and in the U.S. in 2008, 60 percent of prime adjustable rate mortgages and almost all of sub-prime mortgages were tied to LIBOR."
Just in the years around the last major bailout, a family with a $100k Loan lost an additional $50-100 per year because of this manipulation. Add that this was a GLOBAL manipulation which affected every type of financial instrument most banks offer, and included, so far, 16 of the world's biggest banks, the total financial fallout is beginning to look staggering.
The banks and their cohorts are trying to keep this under wraps and are attempting to minimize it's projected effect, but as more information emerges, the more monstrous this becomes.
Too big to fail?
Maybe it's time to let them.