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Amwelladmin (talk | contribs) (Created page with "The LIBOR rigging scandal — wherein many traders were prosecuted for manipulating the LIBOR rate to their trading advantage, only really came about as a result of the LIBOR lowballing scandal — a different scandal — where Banks deliberately understated the value of LIBOR that they could borrow at in the market. Whereas — arguably — the LIBOR rigging was at least within the literal meaning of the LIBOR rules, if not their spirit, in that the rates b...") |
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The [[LIBOR rigging]] scandal — wherein many traders were prosecuted for manipulating the [[LIBOR]] rate to their trading advantage, only really came about as a result of the LIBOR lowballing scandal — a different scandal — where Banks deliberately understated the value of LIBOR that they could borrow at in the market. | {{a|disaster|}}The [[LIBOR rigging]] scandal — wherein many traders were prosecuted for manipulating the [[LIBOR]] rate to their trading advantage, only really came about as a result of the LIBOR lowballing scandal — a different scandal — where Banks deliberately understated the value of LIBOR that they could borrow at in the market. | ||
Whereas — arguably — the [[LIBOR rigging]] was at least within the literal meaning of the LIBOR rules, if not their spirit, in that the rates banks submitted were actual rates that banks could borrow at — frequently a bit higher than the lowest they could borrow at — in the lowballing scenario, the rates submitted were outright false: it was a time of maximum market spookedness; everyone thought the banks were going down, and no one was lending at normal rates to each other. | Whereas — arguably — the [[LIBOR rigging]] was at least within the literal meaning of the LIBOR rules, if not their spirit, in that the rates banks submitted were actual rates that banks could borrow at — frequently a bit higher than the lowest they could borrow at — in the lowballing scenario, the rates submitted were outright false: it was a time of maximum market spookedness; everyone thought the banks were going down, and no one was lending at normal rates to each other. | ||
In order not to further spook the market, the LIBOR submitters, allegedly under pressure from “upstairs” — it not being settled exactly ''how far upstairs'' — submitted rates materially lower than where they actually could borrow at the time. | In order not to further spook the market, the LIBOR submitters, allegedly under pressure from “upstairs” — it not being settled exactly ''how far upstairs'' — submitted rates materially lower than where they actually could borrow at the time. |