Friday, June 29, 2012

Barclays and Libor

So let me get this straight. Banks self-report how trustworthy other banks find them. This information goes into a statistic that is used across the world to set interest rates and make other policy decisions. 

Now it turns out for the three years up to the financial crash of 2008 they were basically "making shit up" to scam more money. Then, when the crash hit, they continued lying to make themselves look more reliable than they were. (Barclays, remember, were the bank that famously didn't need a UK government bail-out because they found private sector loans to support them. Perhaps based on their faked credit-rating?) 

More : , also my Quora Question )

1 comment:

Scribe said...

Hence today's post on the move to cryptocurrency: