Posted 1 year ago on July 13, 2012, 1:23 a.m. EST by grapes
This content is user submitted and not an official statement
LIBOR rate is one of the most important interest rates in the world because so many loan rates, derivatives, and financial instruments are based on it.
According to: http://en.wikipedia.org/wiki/Libor_scandal
"Libor underpins approximately $350 trillion in derivatives." "Because mortgages, student loans, financial derivatives, and other financial products often rely on Libor as a reference rate, the manipulation of submissions used to calculate those rates can have significant negative effects on consumers and financial markets worldwide."
Here is a news story regarding the incumbent U.S. Treasury Secretary Timothy Geithner (not Hank Paulson who was the Secretary at the time) having some knowledge of the manipulations that were going on:
titled "Geithner made recommendations on Libor in 2008, documents show"
With $350 trillion in derivatives, most people with any loan, mortgage, pension, insurance, and bond holdings have probably been affected.