This LIBOR scandal is bigger than Barclays. Matt Taibbi in Rolling Stone posted in a blog that an email shows that Barclay's was requested to manipulate LIBOR by White Hall, the British Government. Barclays got in trouble for actually responsibly reporting its ratings, because higher LIBOR ratings indicates the lack of confidence Banks have in one another. White Hall requested Barclay's lower its LIBOR ratings to be more in line with other Banks who where already manipulating the numbers. This LIBOR scandal is far more widespread than Barclay's, with banks in the Netherlands being investigated for manipulating their rating system, NIBOR. CNBC just announced that Duetche Bank is now under investigation for manipulation as well. It will reach US Banks too, just wait.
And the point of manipulating LIBOR? To make Banks that were viewed as insolvent within their own industry appear solvent.
This is a very, very big story. Could very well be the Fukushima of the Global Financial Crisis.
Read the Article at HuffingtonPost
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