Exposing the Barclays LIBOR Rigging Scandal (Infographic)

Since (at least) 2005, Barclay’s has been manipulating LI(E)BOR, and their traders have been allegedly pocketing $40MM A DAY betting on interest rate derivatives. If the LIBOR, one of the most fundamental metrics of our banking system can be rigged, can you imagine what other elements of our financial system are a fraud?

Exposing Barclays LIBOR Rigging Scandal

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DISCLAIMER: THE VIEWS EXPRESSED IN THIS INFOGRAPHIC AND THE USER GENERATED COMMENTS BELOW DO NOT REFLECT THE VIEWS OF HEALTHCAREADMINISTRATION.COM

Credits: Economist, IMF, Rolling Stone, HMC, The Guardian, BBC, BBA, Bloomberg

  • Ellen Brown

    Excellent! Thanks.

    • Henry Moore

      Are you “the” Ellen Brown, by any chance?

      • AK

        yes, it is “the” Ellen Brown who authored the Web of Debt. i emailed her to show her this infographic

      • http://twitter.com/KeimgMeg Keimh3reg Peh2u Meg

        Thanks.

  • Tonybuzbee

    Barclay’s Capital making $40M/day in the second graph is extremely unlikely. Assuming they could move the fixing by 1bp, which would be a lot considering it is a trimmed mean, the equivalent Eurodollar exposure would be 1.6M contracts. That is more that the open interest at any time for a ED contract in 2005.

    • DeepThroat

      $40MM/day was the figure cited in Economist. Derivatives are a trillion upon trillion market… $40MM/day is not that much

  • Harold

    Under BOE Collaborated; Bob Diamond not Diamon

  • Sailmann

    Excellent summary-please note that LIBOR is an integral part of the rate setting mechanism for derivative contracts and this is the real bug in the ointment. The current notional value of all derivative contract is estimated to be 0.9-1.2 Quadrillion dollars, an enormous sum that is by an order of magnitude larger than total world Gross Domestic Product (GNP). This is also a non traded market off the radar scope of financial regulatory agencies. When it blows up, and it will, there likely will be only a smoking hole left of all financial institutions.

  • Inashishnigam

    There is a disconnect. When you say “why is it important” it makes sense if the banks had manipulated the LIBOR up for them to gain. In this case they would gain by lowering the LIBOR only if they had net received position i.e. payin LIBOR and receiving fixed.