Posted on 07/10/2012 5:13:31 PM PDT by Colonial Warrior
"An American lawyer leading a class action suit in the United States has said that Barclays and other banks accused of rigging the Libor lending rate could be liable for hundreds of billions of dollars in damages."
"‘There are thousands if not tens of thousands of entities that could possibly have a claim,’ said Michael Hausfeld...."
(Excerpt) Read more at dailymail.co.uk ...
About time....
And lawyers wonder why they're as despised as they are!
Almost as wonderful as those that will be along in a bit to tell you it wasn’t the ‘banksters’ fault it was because of Dodd–Frank and other Government regulations, it was the fault of the stimulus, it the ‘dead beats’ fault it was because of the sun spots it was any number of reason, but it wasn’t because these bankers were thieves!
These are lawyers suing the compilers of an index.
The next logical step is that the index will cease to exist and the benchmark for loan rates will become even more whimsical.
Those of us who are or were bankers are laughing at this. It is possible to pick the temperature at noon or midnight anywhere in the world and people would still sign.
At least there was some thought given to establishing both Prime and LIBOR.
From now on, there will not be.
“Federal Reserve Bank of New York was contacted by Barclays about the Libor rate setting as early as August 2007 . . . .
“It means that that particular branch of the powerful regulator may have known there was a problem with the benchmark rate months before it formally spoke to UK authorities about the issue in spring 2008.
“The man in charge of the New York Fed at the time was Timothy Geithner”
Link: http://www.lbc.co.uk/questions-for-new-york-fed-over-libor-rigging-57051
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