Boy it's starting to get thick out there in the financial world. Just when we thought all the juicy news has been released on activities that the big banks were doing before the crisis we now have the next big story..
http://www.businessweek.com/news/2012-10-15/banks-sued-by-u-dot-s-dot-homeowners-over-rigging-of-libor-benchmark
Businessweek is now reporting 12 banks including Chase, Barclays, RBS, and Royal Bank of Canada, to name a few "unjustly enriched themselves" by manipulated the LIBOR rate which impacted thousands of homeowners on adjustable rate mortgages. LIBOR is an index used when determining the rate changes on ARM products. Not only that but is the benchmark for some 300 Trillion dollars in loans and securities.
Barclay's is the only bank to date that has settled and this will seem as if the trend will continue. Just seems like the only recourse for activity and behavior like this is settling out the claim with a fraction of the money they made by perpetrating the fraud. Nobody goes to jail; not even the traders involved. It's amazing how they just get away with it.
Gotta love the American justice system...
Stay tuned.
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