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Well the way it's supposed to be set is by averaging out what the '16' banks are charging each other, or more specifically by throwing out the top 4 and bottom
by walru 14y ago
Well the way it's supposed to be set is by averaging out what the '16' banks are charging each other, or more specifically by throwing out the top 4 and bottom 4 rates then averaging out the 8 remaining.
When you look at how everything eventually played out, it becomes clear Barclays was not alone in what they were doing.
- cb18 14y agoBarclays was not alone in what they were doing yeah, I think I read on Taibbi's blog that the attention initially came to Barclays because they weren't "juicing the goose," they then were encouraged to do so to alleviate the disparity in the rates they were reporting relative to the other banks. postscript- I reviewed the post before submitting( http://www.rollingstone.com/politics/blogs/taibblog/libor-banking-scandal-deepens-barclays-releases-damning-email-implicates-british-government-20120704 http://www.rollingstone.com/politics/blogs/taibblog/libor-ba... ) The scenario described above is as told by the recently resigned Barclays ceo, perhaps not an exemplar of honesty, but it seems plausible.