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View Diary: Taibbi: "How HSBC hooked up with drug traffickers and terrorists. And got away with it.” (145 comments)

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  •  Clinton Miracle? (4+ / 0-)
    Recommended by:
    Chi, bobswern, Eric Blair, goodpractice

    http://www.rollingstone.com/...

    For perhaps as far back as 20 years, banks have been submitting phony numbers, often in concert with other banks. They did it for a variety of reasons, but the big one, typically, is that a bank trader is holding some investment tied to LIBOR – bundles of currencies, municipal bonds, mortgages, whatever – that would earn more money if the interest rate was lower. So what would happen is, some schmuck trader at Bank X would call the LIBOR submitter and offer him cash, booze, a blow job or just a pat on the back to get him to submit a fake number that day.

    Democracy - 1 person 1 vote. Free Markets - More dollars more power.

    by k9disc on Thu Feb 14, 2013 at 01:57:10 PM PST

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