Anyone else following the LIBOR scandal that started in the UK and is spreading like a wildfire across the global banking industry?
If not, this could be a good popcorn and beer opportunity. If you can still afford those things.
Libor — that’s the London interbank offered rate — represents a series of interest rates at which banks make unsecured loans to each other. More important, it is a benchmark that many financial instruments are pegged to. The Commodity Futures Trading Commission, which doggedly pursued the wrongdoing and brought the scandal to light, estimates that some $350 trillion worth of and $10 trillion worth of loans are based on Libor.
But…but many will say, that’s in London.