News Archives » Barclays
Bank Scandal…Yet Again July 25th, 2012
Recent revelations of bank manipulation of the all-important LIBOR (London Interbank Offered Rate) form the basis for this most recent commentary, Here They Go Again, by Fr. Seamus Finn OMI on Huffington Post.
LIBOR is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks. It is recognized as the primary benchmark for along with the Euribor (Euro Interbank Offered Rate), for short-term interest rates around the world
Commonly, financial institutions, mortgage lenders and credit card agencies set their own rates relative to it, hence its importance. At least $350 trillion in derivatives and other financial products are reportedly tied to the Libor
The Imploding Banking Sector July 24th, 2012
Summer months here in Washington, D.C. are generally characterized by the slower pace that is associated with southern cities and the rush of Congress and government employees to get in some vacationing with their families before Labor Day. Even the traffic reporters usually sprinkle their reports with comments about the decreased traffic flows or the early exits for the eastern shore that usually start on Thursday afternoon.
Unfortunately, if you are on the House Financial Services Committee or the Senate Banking committee or one of the regulators for the numerous corporations that operate in the financial services sector, there has been very little down time since the famous early May JPMC announcement about the huge trading loss in their Chief Investment Office in London. Since then the amount of the loss has more than doubled and numerous investigations into the actions of individuals involved in the loss have been opened. All of these activities promise to keep a number of folks at their desks for longer than expected.