Articles | News | Back
May 1, 2013 - By Staff Writer
As most of you heard by know, there's an ongoing investigation that implicates Barclays Bank, the Royal Bank of Scotland and UBS, in manipulating Interbank Offered Rates (LIBOR) from 2005 to 2009 for their benefit, the investigation may include, among others, Bank of America, Deutsche Bank and Citigroup.
As an example of the fraud, a UBS trader's action over three years resulted in hundreds of millions of profits for the bank. LIBOR is the euro equivalent of the U.S. Prime Rate, and it is used globally as a base rate for commercial and consumer loans, and the affects of a scandal in the global markets is significant, if there's no trust in consumer and commercial rates, how can any economy and business move forward with confidence?