Breaking News: Big Banks Lie to Make More Money
WHAT?! Shocking right. I never even heard the term “Libor” until now but it is apparently very important.
Libor is a score like a credit score that banks use to decide how much money to charge other banks to borrow money. Still with me?
Well apparently, and here is the shocker…sometimes banks lie to be able to get more money. Imagine you could just adjust your credit score on a day to day basis to get great intrest rates. That’s what they are doing.
LIBOR is actually relatively new for the financial industry and seldom discussed outside of the financial community. Yet, the daily LIBOR rates do have a world-wide influence in every person’s life as people apply for loans, business seed money, along with the potential solvency of their own banks. In order understand the rationale behind the record setting fine, it’s important to understand the history of LIBOR, what it does, and how it impacts you. read more
This should be bigger news. Maybe it will be.
The Libor Scandal