Barclay's LIBOR manipulation

kaya64

Thrugelmir wrote: »

Barclays was attempting to lower LIBOR to disguise its own financial difficulties from other banks.

So the customers may well have underpaid.

But the whole deal is now based on diceipt and lies surely customers should be looking into this ,

Thrugelmir

kaya64 wrote: »

But the whole deal is now based on diceipt and lies surely customers should be looking into this ,

and pay more for their mortgages?

wotsthat

Thrugelmir wrote: »

and pay more for their mortgages?

If Barclays gained from this then someone else must have been on the opposite side of the trade and lost out.

JasonLVC

kaya64 wrote: »

But the whole deal is now based on diceipt and lies surely customers should be looking into this ,

I'm sure if you want to write to your bank and ask them to recalculate your mortgage on the true LIBOR rates then that is your right to do so, but that may mean you owe more interest.

Compensation should reflect the loss - so calculate what you may have lost on to arrive at a compo figure.

Bear in mind the artificial LIBOR rate determined at what rate banks borrowed from each other, it indirectly affects consumer mortgages by virtue of what profit margin a bank wanted to make on a mortgage (ie, it lends to you at 3% and borrows at 2%, bank makes 1% profit).

If the bank borrowed for say 1% becuase it tricked other banks into lending at a lower rate, it doesn't change your contract with the bank as your mortgage would be something like "x% above Bank rate" so regardless of the profit margin of the bank, you still pay whatever % above bank rate and bank rate is set by the BoE. if you were on a fixed rate deal then it matters little what the LIBOR rate is (beyond if the LIBOR rate was manipulated greatly the other banks may decide to raise their fixed rates marginally to retain their profit margin).

Thrugelmir

wotsthat wrote: »

If Barclays gained from this then someone else must have been on the opposite side of the trade and lost out.

There's no trade per se. LIBOR is a notional number. At which trade is to be conducted at.

wotsthat

Thrugelmir wrote: »

There's no trade per se. LIBOR is a notional number. At which trade is to be conducted at.

OK. If Barclays have gained from this then who has lost?

The-Joker

CLAPTON wrote: »

there would first be a 5 or 6 year investigation with a few people then being charged

the case would drag on for a further year or two before it was discovered that the prosecution had accidentally forgotten to disclose some evidence

the judge would then declare a mistrial and everyone would go home without a stain on their character.

Sounds a lot like the department of justice 5 year investigation into the silver price manipulation by JPMorgan.

A whistleblower gave them evidence of the crime in progress as it was happening. He predicted a price suppression before it happened, then after the price was supressed he wrote them again saying see it happened exactly as stated. All the emails to the regulators were documented and he did their job for them.

That was years ago and the investigation is still ongoing.

The same will happen to the manipulators here, the thing about the internet is though that things are not as easily swept under the carpet as was the case years ago.

kaya64

JasonLVC wrote: »

I'm sure if you want to write to your bank and ask them to recalculate your mortgage on the true LIBOR rates then that is your right to do so, but that may mean you owe more interest.

Compensation should reflect the loss - so calculate what you may have lost on to arrive at a compo figure.

Bear in mind the artificial LIBOR rate determined at what rate banks borrowed from each other, it indirectly affects consumer mortgages by virtue of what profit margin a bank wanted to make on a mortgage (ie, it lends to you at 3% and borrows at 2%, bank makes 1% profit).

If the bank borrowed for say 1% becuase it tricked other banks into lending at a lower rate, it doesn't change your contract with the bank as your mortgage would be something like "x% above Bank rate" so regardless of the profit margin of the bank, you still pay whatever % above bank rate and bank rate is set by the BoE. if you were on a fixed rate deal then it matters little what the LIBOR rate is (beyond if the LIBOR rate was manipulated greatly the other banks may decide to raise their fixed rates marginally to retain their profit margin).

I am only commenting , my mortgage isn't with Barclays , i did mention this in one of my first replies. Mine is with a horrible horrible company Kensington :eek:

Thrugelmir

wotsthat wrote: »

OK. If Barclays have gained from this then who has lost?

As has been explained earlier LIBOR is calculated in a defined manner. That Barclays may not have even of influenced.

wotsthat

Thrugelmir wrote: »

As has been explained earlier LIBOR is calculated in a defined manner. That Barclays may not have even of influenced.

You implied that someone may have paid less interest on their mortgage as a result of this than they otherwise should have done.

Paid too little to who?

Barclays traders were buying each other good times and champagne on the back of this manipulation. That money must have come from somewhere - it sounds like a zero sum game - someone's up and someone's down.