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>>It's pretty simple. It's illegal for corporations to get together and decide the price of things. << Is this not how LIBOR or the Fed rate is determined?

• epc 13y ago
  The L in LIBOR stands for London. Which is not in the US. And the theoretical basis for LIBOR was that the BBA called various banks to see what they'd offer. What we've since learned is that the various banks would chat with each other to see what they needed LIBOR to be and then conspired to set LIBOR. Which is why there's various prosecutions underway. The Fed rate is determined by the Fed. Which is a US Government entity. And is its responsibility. So not even remotely close to the same thing
  • brisance 13y ago
    Digressing a little, but since you are talking about jurisdiction then yes it's a fair point albeit splitting hairs. But from a morality point of view isn't it incompatible with the parent's view that certain values should be universal? The Fed is not a US Government entity. It operates within rules created by Congress but is not beholden to Congress or any branch of the US Government. The board holds meetings and the Chairman reports to Congress once in a while but they have more or less a free hand in running things. "As the nation's central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms." http://www.federalreserve.gov/faqs/about_14986.htm http://www.federalreserve.gov/faqs/about_14986.htm