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INFOGRAPHIC: The LIBOR Scandal Explained ..Dialup warning (Original Post) Ichingcarpenter Jul 2012 OP
Libor is the rate that banks lend between themselves dipsydoodle Jul 2012 #1
Excellent post!Thanks! Melissa G Jul 2012 #2

dipsydoodle

(42,239 posts)
1. Libor is the rate that banks lend between themselves
Wed Jul 11, 2012, 06:11 AM
Jul 2012

Thereafter loans are based on Libor + whatever percentage. What the top up is is determined by lenders bearing in mind that they themselves are in competition.

Most references to this issue revolve around the rate being artificially lowered : not increased. As such investors who lost out on overnight money or short term money whatever would in theory be owed by those who gained i.e. borrowers of almost any description.

Simplest thing would be to unwind all deals , with any commissions repaid, to correct the situation.

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