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Forum Post: Don't Quite Get LIBOR? Simple video explains it in 3 minutes.

Posted 2 years ago on July 15, 2012, 5 p.m. EST by TrevorMnemonic (5827)
This content is user submitted and not an official statement

Video by Congressman Dennis Kucinich

http://www.youtube.com/watch?v=fcyX6Hlqldk

UPDATE VIDEO - This is what we know so far - JULY 16 2012 - http://www.youtube.com/watch?v=Xjp7vYb-wfM&feature=youtu.be

This is what he said in the first video -

“Late last month, Barclay’s Bank, a multinational bank and financial institution based in the United Kingdom, admitted to regulators that it tried to manipulate something called “Libor” before and during the financial crisis in 2008. “Libor” is an acronym for London Interbank Offered Rate. It is a rate used as a benchmark for the cost of lending throughout the financial system, and it is also used as a reference rate for a wide range of financial products like car loans, adjustable-rate mortgages, student loans and credit cards.

“The Libor is not based on an objective measure of the interest for bank-to-bank loans. It is the average of a daily poll of the Association’s member banks, who give an estimate of the interest rate they think they would pay if they sought to borrow from another bank.

“It is supposed to be the way the financial system assesses the overall health of the financial system, because if the banks being polled feel confident about the state of things, they report a low number, because they assume that if they had to borrow from another bank, their cost of borrowing would be low. If member banks feel a low degree of confidence in the financial system, they report a higher interest rate. And from that the Libor is calculated, affecting the interest rate on financial products around the globe.

“What has emerged from the Barclay’s Bank inquiry is evidence that banks may have in fact been deliberately manipulating Libor rates for years. The evidence so far is that one arm of a bank responding to the Libor poll would change their number based on what another arm of the same bank wanted—and that other arm could consist of the bank’s traders who make their money on whether the rate goes up or down. This means that millions of consumers, investors and businesses have been paying the wrong interest rate. Or rather, they haven’t been paying an interest rate that is set according to some legitimate benchmark. Instead they are paying a rate based on a gentlemen’s agreement at financial institutions, a method that practically incentivizes those banks to game the system to maximize their profits.

“And remember, the British Bankers Association, the group that is responsible for setting the rate, is not a government agency. It is just a trade group of big banks-- Bank of America, JPMorgan Chase and Deutsche Bank and others--whose decisions on such a crucial number are not based on honest accounting or rules or regulatory oversight, but on a gentlemen’s agreement of honesty.

“We don’t know just how deep this scandal goes. But the fact is that if a fundamental component of our financial system has been or is being manipulated, we have the right to know about it. Banks are not above the law and they should not be allowed to operate in secrecy, especially when they have a history of taxpayer bailout and when we are forced to rely on them to provide capital for economic growth.”

24 Comments

24 Comments


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[-] 3 points by freehorseman (267) from Miles City, Mt 2 years ago

Nice explanation.Sorry to say but it is evident that banks are above the law.

[-] 1 points by Underdog (2971) from Clermont, FL 2 years ago

I think this video is a better way to explain it:

http://www.youtube.com/watch?v=TN5psbXeHu8&feature=youtube_gdata_player

[-] 0 points by TrevorMnemonic (5827) 2 years ago

Dennis Kucinich is a more credible source and also has a great voting record on issues that holds true to what he talks about.

Your video was cool though. Keep sharing info!! Knowledge is power.

[-] 2 points by VQkag2 (16478) 2 years ago

An excellent voting record! We should all analyze his record and learn from it.

Peace and more power to Kucinich

[-] 0 points by TrevorMnemonic (5827) 2 years ago

Check out his new site! It just got launched. His .gov site also posts amazing press releases every week that keep you posted on current events in congress and the wars.

http://action.kucinich.us/page/s/bold-voices

[-] 1 points by VQkag2 (16478) 2 years ago

The banksters should be put in jail. We should take there money and use to to pay down the debt of the working class.

[-] 0 points by TrevorMnemonic (5827) 2 years ago

We should also end the war on drugs and use the money to provide public option college or tuition assistance. The war on drugs and the student debt dollar amount are about equal. I'd rather have my tax dollars putting kids through college instead of putting potheads and black people in prison.

[-] 1 points by VQkag2 (16478) 2 years ago

College should be free for most young people. expand Pell grants, and roll back the huge tuition increases over the last many years.

"War on drugs" and even the 21 yr old drinking age is just an effort to oppress minorities by targeting minorities to give them a drug record that prevents college aid, and good job prospects.

[-] 0 points by TrevorMnemonic (5827) 2 years ago

People can also get turned down from apartments and housing because of drug records.

[-] 1 points by VQkag2 (16478) 2 years ago

It is just a continuation of the racist/segregation/jimcrow oppression that non whites have been subjected to.

[-] 0 points by TrevorMnemonic (5827) 2 years ago

It'd be nice to have a president or a congress willing to at least ATTEMPT to repeal laws imprisoning millions of non-violent people. Repealing these harmful laws would also create jobs and open up for spending on social programs instead of prisons.

[-] 1 points by VQkag2 (16478) 2 years ago

We have state laws (in ny) that have to be changed in this regard almost got it changed in June but repubs in state senate killed it. It will come. Gotta keep up the pressure.

Fed is more difficult, but not impossible. I know it will come. Politically the country has moved to far right, Dems are afraid of the "weak on crime" label that the right has successfully attached to them.

Spineless Dems.

Gotta keep up the pressure.

[-] 0 points by TrevorMnemonic (5827) 2 years ago

and congress as well. I added that in. Congress is the reason behind almost every problem. Bush sucked a lot... where was congress with impeachment for war crimes? That's right.. they supported the war and budgeted funding for it.

[-] 1 points by VQkag2 (16478) 2 years ago

For 40 years this country has been moving ever more to the right. Dems have lost their spine while repubs have successfully labeled them "weak on defense"

After the 9/11 attacks the peaceful anti war notions in the dems were buried as the whole country moved even further right and militaristic. So if we want congress or the Pres to step back from this militaristic, endless war on terror, then the people (you and me) have to rise up. Protest more. Grow the movement. Be inclusive. And begin to move the country from the right wing militaristic fear mongering the neo cons thrive on.

It's the only way. It's on us. We can't keep blaming the Pres. or the congress, Or the dems, & the Repubs. Its the ideology that is wrong and we can and must change it.

[-] 0 points by TrevorMnemonic (5827) 2 years ago

So do you still think I'm a republican Romney supporter? You've been calling me a republican in posts all over this site but it seems we 100% agree with what I've said so far.

Remember being anti-war is not a GOP agenda. Being anti-war is the agenda of peace and it's a road avoided by the GOP and a lot of democrats.

Stop the drones. Stop the surface to air missiles. Stop using the term militant to cover for dead civilians. Stop using Black Water. Stop imperialism. STOP IT ALL NOW!

[-] 1 points by VQkag2 (16478) 2 years ago

No I'm still not convinced.

Being anti war is ridiculed and demonized by the repubs. They are responsible for creating the atmosphere of fear, and endless war on terror.

These tactics have created the current threats to our civil right

The dems are simply spineless when confronted with these republican tactics. You don't point out these realities. And these realities areat the roots of our current military abuse. and constitutional threats.

[-] 1 points by TrevorMnemonic (5827) 2 years ago

So when Obama is bombing foreign countries he's doing it because he's spineless and manipulated by the GOP? Is that what you're saying? Sounds like he's part of the problem when it comes to war then. Do you know who has voted against the GOP always? Dennis Kucinich. He even tried to impeach Bush. Where was Obama on that? We need someone with a spine. Jill Stein has bigger balls than Obama.

Stop the drones. Stop the surface to air missiles. Stop using the term militant to cover for dead civilians. Stop using Black Water. Stop imperialism. STOP IT ALL NOW!

Vote for peace. Not for war.

"two guys, same background, wealth, political influence, went to the same elite university, joined the same secret society where you're trained to be a ruler - they both can run because they're financed by the same corporate institutions. At the Democratic Convention, Barack Obama said, 'only in this country, only in America, could someone like me appear here.' Well, in some other countries, people much poorer than him would not only talk at the convention - they'd be elected president. Take Lula. The president of Brazil is a guy with a peasant background, a union organizer, never went to school, he's the president of the second-biggest country in the hemisphere. Only in America? I mean, there they actually have elections where you can choose somebody from your own ranks. With different policies. That's inconceivable in the United States." - Noam Chomsky

If Dennis Kucinich can oppose the GOP every step of the way... why can't Obama? If Dennis Kucinich tried to impeach Bush why didn't Obama? If Dennis Kucinich says the drones can be stopped today why hasn't Obama stopped them? You make too many excuses for Obama when it comes to the wars and the bombs.

[-] -1 points by VQkag2 (16478) 2 years ago

you don't know what your talkin about. I have listed many steps of progress that Pres Obama has accomplished. What excuses have I made for Pres Obama.?

Anyway, onceagain you have many detailed criticisms of Pres Obama and you give repubs a pass. You sound partisan.

And Klein and Kucinichwill never be President which means they have the luxury of not worrying about winning a campaign and actually doing something. No comparison.

We don't agree boss. You can't convince me to not support Obama with your partisanship. And you won't convince me with vulgar offensive insults so be mature and refrain.

stop drone attacks, end ndaa.

Elect progressives, vote out conservative plutocrat tools

[-] 1 points by TrevorMnemonic (5827) 2 years ago

"And Klein and Kucinichwill never be President which means they have the luxury of not worrying about winning a campaign and actually doing something. No comparison."

That is you making excuses for Obama. He is a patriot act supporter. He is currently bombing foreign countries where innocent people have died. I will never be silent about this until it stops.

Bush killed upwards to a million people. He should be in prison for life. What more criticism for repubs do you want from me?

Unlike you i don't silence others for speaking against murderers.

Keep calling me partisan. It makes me laugh.

If you believe people should vote for progressives you should be throwing support at people like Kucinich and Jill Stein.

These wars have poisoned America. And yes it all started with Bush in regards to the failed war on terror... and the war for minerals and oil. But why are they still going. Why is Black water still in operation. Why do we have warships surrounding Iran? Why Libya and not Uganda? More people have been slaughtered in Uganda. Way more. Research these countries and these wars. Don't forget about the undeclared wars either. Why is hatred for the US growing in Yemen? Why are they reusing failed policies that created the Taliban dating back to 1979? The mujahideen and the Aghan Arbas. These are failed policies and they're proven to be counter productive.

And it's not just these presidents. It failed Congressmen approving of these policies and failing to impeach.

[-] 1 points by VQkag2 (16478) 2 years ago

I can vote for Stein. (Kucinich is not running Trev) I voted for Nader and I have voted green. But I have the luxury of being from a deep blue state so I don't have to worry about splitting the progressive vote and throwing my electoral votes to the right wing 1% warmongering tools.

I cannot encourage progressive to split their states progressive votes for this reason. (end the electoral college!)

I am against the foreign policy actions you listed. I know this Pres policy/actions represent the beginning of the progress we need!. I believe pres Obama will continue making progress at better use of the military. I believe the dems will always be better wielders of military power.

Peace

[-] -2 points by AnchorActivism (-2) from Boulder, CO 2 years ago

But wait! Wouldn't repealing the laws and setting everyone free destroy jobs for prison workers? That would be counter-productive!

[-] 0 points by TrevorMnemonic (5827) 2 years ago

no you're being facetious

[-] 1 points by throaway (57) 2 years ago

Couldn't agree more!

The war on drugs is tearing Mexico apart.

The war on drugs is making criminals out of otherwise law abiding citizens.

The war on drugs is funding so much of our gov't's off the book activities going back to Reagan years Iran/Contra. CIA lets drugs in by the plane full and sends weapons back at the same rate.

The war on drugs is nothing but a money maker for the 1%.

The war on drugs is just as much a threat to our freedom as the war on terror.

[-] 0 points by TrevorMnemonic (5827) 1 year ago

Are the banks above the law?