Anyone interested in money will have an interest in these developments. The LIBOR rate, the London Interbank Offered Rate or overnight interest rate ‘estimated’ by leading London banks is under new control.
LIBOR affects our lives in many ways
This key benchmark borrowing rate forms the cost base for many loan transactions around the world. It turns out the boys over at the British Bankers Association, then responsible for setting the rate, fixed it to their advantage during the 2008 financial crisis that affected every person corner on earth.
This only came to light early this year. British authorities immediately acted and now after billions in fines, multiple arrests and most critically, all credibility gone, someone new had to be in charge. Turns out it will be an American company, NYSE Euronet!
First Canadian Mark Carney takes control of the Bank of England and now the Americans control LIBOR! Although it still remains under control of the British regulators.
To sooth any wounded pride, British attention and delight will soon focus on a new royal baby. Times do change.
Can you believe interest rates can rise when they are low? For a clear explanation of why some mortgage rates are rising when the central bank rates remain low and flat, click the link below. Mortgage broker, video maker and friend, John charbonneau, provides a clear concise explanation in this public service clip. Click here: http://bit.ly/13JzDSZ
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