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Posts Tagged ‘LIBOR’

Barclay’s and Conning Libor – what really happened

YOU’LL have seen the stories all over the place about Barclay’s ‘fessin’ up to having tried to manipulate Libor.

Just as background, Libor is the rate at which banks lend to each other. It’s also the rate at which huge numbers of financial contracts are set by. Libor plus 3% wouldn’t be unusual for a commercial loan for example. So, if Libor is wrong then the interest rates on those tens of trillions (maybe hundreds of trillions) of other contracts are also wrong.

And we know that Barclay’s tried to manipulate that Libor price. Sometimes in order to try and make money on those tens (or hunreds) of trillions of contracts and sometimes just to make the bank itself look less risky in the Crash.

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Posted: 28th, June 2012 | In: Money | Comments (2)


54 Million Ways To Out The Lie In The LIBOR

FACT One: The latest banking “screw your customer” policy is insisting small, medium and large business pay a sizeable percentage above the LIBOR rate for commercial loans. That is, not at the usual Bank of England rate plus a couple of percent.

Fact Two: Braver accountants are telling Business Accountant Managers to get stuffed and switching accounts to the banks which have not yet turned that screw.

Meanwhile, back in fat cat country: When news of the Northern Rock debauch broke Anorak asked two questions:

  • Who was responsible and accountable. Answer? Every-one
  • Who would be brought to book and who would press criminal charges? Answer? No-one

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Posted: 19th, November 2008 | In: Money | Comments (2)


LIBOR Climbs Aboard The Titanic

I KNOW, just when you thought it was safe to go back into the water, sorry, financial markets, the vultures are circling as the rate at which banks lend dollars to each other, dollar LIBOR, starts climbing again.

If I were really cynical I would view this as a concerted attempt at persuading the Group of 20, who are meeting this weekend, to throw yet more taxpayers’ money at the banks so that they can continue their inalienable human right of paying themselves huge bonuses whilst presiding over the biggest f*ck up since the Great Depression.

On second thoughts, rescind that; it suggests that the bankers are competent enough to actually come up with a plan, and that the US Treasury might see something wrong with the taxpayers’ stumping up for the fat bonuses.

So, why is it happening?

Posted: 15th, November 2008 | In: Money | Comments (4)


The 360 Trillion Dollar LIBOR Punt

NOT every problem can be solved by throwing money at it, but as Libor falls for the third day in a row we need to keep spinning those prayer wheels and throwing the money at it.

According to Bloomberg

‘Dollar money-market rates fell after the European Central Bank, Bank of England and Swiss National Bank offered lenders unlimited U.S. currency for the first time in a coordinated effort to unlock credit markets.’

How much money, I hear you asking.

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Posted: 15th, October 2008 | In: Reviews | Comments (3)