-
LIBOR vs. SOFR : Introduction, Scandals & Replacement : The Interest-Rate Benchmark
What is LIBOR?
LIBOR is the abbreviation of London Interbank Offer Rate. It is an indicator of the average interest rates that UK banks charge other banks and financial institutions for short-term loans. Like people, banks also need to lend money to each other to satisfy their short-term needs. Currently, LIBOR is quoted for 5 main currencies, US dollar, Euro, Japanese Yen, British Pounds and Swiss Franc, and seven different maturity periods: overnight, one week, 1 month, 2 months, 3 months, 6 months and 1 year. In the combination of those currencies and maturities, the most commonly quoted rate is the 3-month US dollar LIBOR, which is usually referred to as the current LIBOR rate. Since its birth in 1986, LIBOR is mainly used as a global reference rate for different short-term interest ra...
published: 26 Apr 2022
-
What is LIBOR: What Is It and Why Does it Matter? ☝️
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What is LIBOR? http://www.financial-spread-betting.com/LIBOR-loans.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! LIBOR stands for London Interbank Offered Rate. LIBOR is basically an average of interest rates that each of the main banks in London charge each other for short-term loans. As such it is the interest rate at which member banks can borrow from one another in suitable size. How does LIBOR affect traders? What does it mean for a broker to charge traders LIBOR +2 or - 2%?
✅ Our channel sponsor for this month are Trade Nation me...
published: 02 Oct 2017
-
What is LIBOR?
Get an overview of Eurodollar futures contracts at CME Group and the start of LIBOR.
Subscribe: https://www.youtube.com/subscription_center?add_user=cmegroup
Learn more: https://institute.cmegroup.com/
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Follow us:
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Facebook: http://www.facebook.com/CMEGroup
Topic: euro, libor, yield curve
published: 19 Jun 2017
-
LIBOR | Money, banking and central banks | Finance & Capital Markets | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/banking-and-money/v/libor
London InterBank Offer Rate. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/federal-reserve/v/fed-open-market-operations?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/banking-and-money/v/frb-commentary-3-big-picture?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: We all use money and most of us use...
published: 11 Apr 2011
-
What Is Libor?
As the international scandal over rigged rates unfolds, Dow Jones's Nick Hastings explains what Libor exactly is. Photo: Bloomberg
Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy
More from the Wall Street Journal:
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published: 19 Dec 2012
-
Libor: Bank of England implicated in secret recording - BBC News
A secret recording that implicates the Bank of England in the Libor rigging scandal has been uncovered by the BBC's Panorama programme. Libor is the rate at which banks lend money to each other and it sets a benchmark for mortgages and loans for regular customers. The 2008 recording adds to evidence the central bank repeatedly pressured commercial banks during the financial crisis to push their Libor rates down.
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published: 11 Apr 2017
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How Barclays manipulated the libor rates
Subscribe to our channel http://bit.ly/AJSubscribe
The Barclays Bank scandal centres around a key interest rate known as Libor. Al Jazeera's Dominic Kane reports on exactly what that is. We also speak to Bill Black, a former US banking regulator for more clarity on how this multi-million dollar fraud was perpetrated.
At Al Jazeera English, we focus on people and events that affect people's lives. We bring topics to light that often go under-reported, listening to all sides of the story and giving a 'voice to the voiceless.'
Reaching more than 270 million households in over 140 countries across the globe, our viewers trust Al Jazeera English to keep them informed, inspired, and entertained.
Our impartial, fact-based reporting wins worldwide praise and respect. It is our unique brand of jo...
published: 03 Jul 2012
-
The Libor Scandal: Three Things to Know
Following investigations into Barclays' manipulation of London Interbank Offered Rates (Libor), CFR's Sebastian Mallaby highlights three implications from the unfolding scandal:
Conflicts of Interest Within Banks: Barclays' distorted reports on borrowing rates demonstrate the system's failure to prevent damage from conflicts of interest between banks and their traders. "Chinese walls don't work," Mallaby says. "It's a lesson we've learned over and over again in finance."
The Role of Regulators: The alleged collusion between the Bank of England and Barclays indicates a critical challenge in the governance of financial markets: Regulators are forced to bend rules to protect banks, "not because they are bribed," says Mallaby, "but because they are blackmailed, in the sense that the banks, ...
published: 10 Jul 2012
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How Interest Rates Work (LIBOR vs SOFR)
How are interest rates set and modified? Rates change constantly, based on base rates banks pay to each other for lending money between themselves. The London InterBank Offered Rate (LIBOR) was the common standard in the USA, before scandal broke trust. Secured Overnight Financing Rate (SOFR) is the emerging successor.
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https://www.youtube.com/channel/UCqQDPubh1uiyy0NMIRGHYqg/
published: 24 Nov 2021
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【財經懶人包】LIBOR
LIBOR
published: 24 Oct 2018
3:40
LIBOR vs. SOFR : Introduction, Scandals & Replacement : The Interest-Rate Benchmark
What is LIBOR?
LIBOR is the abbreviation of London Interbank Offer Rate. It is an indicator of the average interest rates that UK banks charge other banks and f...
What is LIBOR?
LIBOR is the abbreviation of London Interbank Offer Rate. It is an indicator of the average interest rates that UK banks charge other banks and financial institutions for short-term loans. Like people, banks also need to lend money to each other to satisfy their short-term needs. Currently, LIBOR is quoted for 5 main currencies, US dollar, Euro, Japanese Yen, British Pounds and Swiss Franc, and seven different maturity periods: overnight, one week, 1 month, 2 months, 3 months, 6 months and 1 year. In the combination of those currencies and maturities, the most commonly quoted rate is the 3-month US dollar LIBOR, which is usually referred to as the current LIBOR rate. Since its birth in 1986, LIBOR is mainly used as a global reference rate for different short-term interest rate financial products such as currency swaps, interest rate swaps, mortgages and so on. Many banks worldwide use Libor as a base rate for setting interest rates on consumer and corporate loans such as credit cards, auto, student, and home loans. Since LIBOR is an important reference for the interest rates for the financial products, it may dilute the effects of rate cuts from central banks. If the central bank cut rates but the LIBOR rates are staying at a high level, those high LIBOR rates will still prevent people from getting loans, making the rate cut less effective for the loan market.
How is LIBOR calculated?
LIBOR is administered by the Intercontinental Exchange, which will collect quotes from major banks about how much they will charge other banks for short-term loans. Then the Intercontinental Exchange will get rid of the highest and lowest 25 percent of submissions from the list and calculate the average from the remaining ones. The final calculated average rate will be announced and published each morning around 11 a.m. London time as the rate for that day.
LIBOR Scandal And How It Was Manipulated
Due to the fact that the data is based on the quotes from banks instead of the real rates, there is a chance that those major banks may allegedly colludeto manipulate the LIBOR rates in their own favour. The famous LIBOR scandal was reported in the Wall Street Journal in 2008 which indicated that some major banks deliberately submitted low LIBOR rates to tell LIBOR calculators that it can borrow money at relatively cheap rates which will make the bank appear less risky and thus can attract more business. Also, those major banks did also work with some swaps traders to provide LIBOR the rates which will benefit the traders instead of the real rates the bank would actually pay to borrow money. Those scandals are considered tohave eroded public trust in the marketplace.
LIBOR Replacement SOFR
Due to the LIBOR scandals which caused many dissatisfaction from the marketplace, there are many LIBOR alternatives emerging in recent years and the Secured Overnight Financing Rate, abbreviated as SOFR, is one of them. SOFR is a benchmark rate which is mainly for US dollar denominated financial products and loans. It will take rates from the US Treasury repo market which is much larger than the interbank loan market used by LIBOR. This will make the final calculation be more accurate than LIBOR. Moreover, unlike LIBOR, SOFR is based on data from observable transactions rather than on estimated borrowing rates. This make it to be a more accurate indicator to reflect the real borrowing costs.
https://wn.com/Libor_Vs._Sofr_Introduction,_Scandals_Replacement_The_Interest_Rate_Benchmark
What is LIBOR?
LIBOR is the abbreviation of London Interbank Offer Rate. It is an indicator of the average interest rates that UK banks charge other banks and financial institutions for short-term loans. Like people, banks also need to lend money to each other to satisfy their short-term needs. Currently, LIBOR is quoted for 5 main currencies, US dollar, Euro, Japanese Yen, British Pounds and Swiss Franc, and seven different maturity periods: overnight, one week, 1 month, 2 months, 3 months, 6 months and 1 year. In the combination of those currencies and maturities, the most commonly quoted rate is the 3-month US dollar LIBOR, which is usually referred to as the current LIBOR rate. Since its birth in 1986, LIBOR is mainly used as a global reference rate for different short-term interest rate financial products such as currency swaps, interest rate swaps, mortgages and so on. Many banks worldwide use Libor as a base rate for setting interest rates on consumer and corporate loans such as credit cards, auto, student, and home loans. Since LIBOR is an important reference for the interest rates for the financial products, it may dilute the effects of rate cuts from central banks. If the central bank cut rates but the LIBOR rates are staying at a high level, those high LIBOR rates will still prevent people from getting loans, making the rate cut less effective for the loan market.
How is LIBOR calculated?
LIBOR is administered by the Intercontinental Exchange, which will collect quotes from major banks about how much they will charge other banks for short-term loans. Then the Intercontinental Exchange will get rid of the highest and lowest 25 percent of submissions from the list and calculate the average from the remaining ones. The final calculated average rate will be announced and published each morning around 11 a.m. London time as the rate for that day.
LIBOR Scandal And How It Was Manipulated
Due to the fact that the data is based on the quotes from banks instead of the real rates, there is a chance that those major banks may allegedly colludeto manipulate the LIBOR rates in their own favour. The famous LIBOR scandal was reported in the Wall Street Journal in 2008 which indicated that some major banks deliberately submitted low LIBOR rates to tell LIBOR calculators that it can borrow money at relatively cheap rates which will make the bank appear less risky and thus can attract more business. Also, those major banks did also work with some swaps traders to provide LIBOR the rates which will benefit the traders instead of the real rates the bank would actually pay to borrow money. Those scandals are considered tohave eroded public trust in the marketplace.
LIBOR Replacement SOFR
Due to the LIBOR scandals which caused many dissatisfaction from the marketplace, there are many LIBOR alternatives emerging in recent years and the Secured Overnight Financing Rate, abbreviated as SOFR, is one of them. SOFR is a benchmark rate which is mainly for US dollar denominated financial products and loans. It will take rates from the US Treasury repo market which is much larger than the interbank loan market used by LIBOR. This will make the final calculation be more accurate than LIBOR. Moreover, unlike LIBOR, SOFR is based on data from observable transactions rather than on estimated borrowing rates. This make it to be a more accurate indicator to reflect the real borrowing costs.
- published: 26 Apr 2022
- views: 34469
5:21
What is LIBOR: What Is It and Why Does it Matter? ☝️
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✅ Please like, subscribe & comment if you enjoyed - it helps a lot!
What is LIBOR? http://www.financial-spread-betting.com/LIBOR-loans.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! LIBOR stands for London Interbank Offered Rate. LIBOR is basically an average of interest rates that each of the main banks in London charge each other for short-term loans. As such it is the interest rate at which member banks can borrow from one another in suitable size. How does LIBOR affect traders? What does it mean for a broker to charge traders LIBOR +2 or - 2%?
✅ Our channel sponsor for this month are Trade Nation meaning these guys are covering our costs of operation. We only accept reputable and properly regulated providers as sponsors. Please support us by trading with this provider. Trade Nation offer the popular MT4 platform as well as an easy-to-use web trading platform with fixed spreads.
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https://wn.com/What_Is_Libor_What_Is_It_And_Why_Does_It_Matter_☝️
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✅ Please like, subscribe & comment if you enjoyed - it helps a lot!
What is LIBOR? http://www.financial-spread-betting.com/LIBOR-loans.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! LIBOR stands for London Interbank Offered Rate. LIBOR is basically an average of interest rates that each of the main banks in London charge each other for short-term loans. As such it is the interest rate at which member banks can borrow from one another in suitable size. How does LIBOR affect traders? What does it mean for a broker to charge traders LIBOR +2 or - 2%?
✅ Our channel sponsor for this month are Trade Nation meaning these guys are covering our costs of operation. We only accept reputable and properly regulated providers as sponsors. Please support us by trading with this provider. Trade Nation offer the popular MT4 platform as well as an easy-to-use web trading platform with fixed spreads.
Sign up with Trade Nation: http://www.financial-spread-betting.com/ccount/click.php?id=95
📜 Disclaimer 📜
81.7% of retail investors lose money when trading CFDs and spread betting with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
- published: 02 Oct 2017
- views: 65636
2:03
What is LIBOR?
Get an overview of Eurodollar futures contracts at CME Group and the start of LIBOR.
Subscribe: https://www.youtube.com/subscription_center?add_user=cmegroup
L...
Get an overview of Eurodollar futures contracts at CME Group and the start of LIBOR.
Subscribe: https://www.youtube.com/subscription_center?add_user=cmegroup
Learn more: https://institute.cmegroup.com/
CME Group: http://www.cmegroup.com/
Follow us:
Twitter: http://twitter.com/CMEGroup
Facebook: http://www.facebook.com/CMEGroup
Topic: euro, libor, yield curve
https://wn.com/What_Is_Libor
Get an overview of Eurodollar futures contracts at CME Group and the start of LIBOR.
Subscribe: https://www.youtube.com/subscription_center?add_user=cmegroup
Learn more: https://institute.cmegroup.com/
CME Group: http://www.cmegroup.com/
Follow us:
Twitter: http://twitter.com/CMEGroup
Facebook: http://www.facebook.com/CMEGroup
Topic: euro, libor, yield curve
- published: 19 Jun 2017
- views: 24129
3:37
LIBOR | Money, banking and central banks | Finance & Capital Markets | Khan Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/...
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/banking-and-money/v/libor
London InterBank Offer Rate. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/federal-reserve/v/fed-open-market-operations?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/banking-and-money/v/frb-commentary-3-big-picture?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: We all use money and most of us use banks. Despite this, the actual working of the banking system is a bit of a mystery to most (especially fractional reserve banking). This older tutorial (bad handwriting and resolution) starts from a basic society looking to do more than barter and incrementally builds to a modern society with fraction reserve banking. Through this process, you will hopefully gain a deep understanding of how money and banking works in our modern world.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
https://wn.com/Libor_|_Money,_Banking_And_Central_Banks_|_Finance_Capital_Markets_|_Khan_Academy
Courses on Khan Academy are always 100% free. Start practicing—and saving your progress—now: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/banking-and-money/v/libor
London InterBank Offer Rate. Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/federal-reserve/v/fed-open-market-operations?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/banking-and-money/v/frb-commentary-3-big-picture?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: We all use money and most of us use banks. Despite this, the actual working of the banking system is a bit of a mystery to most (especially fractional reserve banking). This older tutorial (bad handwriting and resolution) starts from a basic society looking to do more than barter and incrementally builds to a modern society with fraction reserve banking. Through this process, you will hopefully gain a deep understanding of how money and banking works in our modern world.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
- published: 11 Apr 2011
- views: 194530
2:46
What Is Libor?
As the international scandal over rigged rates unfolds, Dow Jones's Nick Hastings explains what Libor exactly is. Photo: Bloomberg
Don’t miss a WSJ video, subs...
As the international scandal over rigged rates unfolds, Dow Jones's Nick Hastings explains what Libor exactly is. Photo: Bloomberg
Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy
More from the Wall Street Journal:
Visit WSJ.com: http://www.wsj.com
Visit the WSJ Video Center: https://wsj.com/video
On Facebook: https://www.facebook.com/pg/wsj/videos/
On Twitter: https://twitter.com/WSJ
On Snapchat: https://on.wsj.com/2ratjSM
https://wn.com/What_Is_Libor
As the international scandal over rigged rates unfolds, Dow Jones's Nick Hastings explains what Libor exactly is. Photo: Bloomberg
Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy
More from the Wall Street Journal:
Visit WSJ.com: http://www.wsj.com
Visit the WSJ Video Center: https://wsj.com/video
On Facebook: https://www.facebook.com/pg/wsj/videos/
On Twitter: https://twitter.com/WSJ
On Snapchat: https://on.wsj.com/2ratjSM
- published: 19 Dec 2012
- views: 7910
2:43
Libor: Bank of England implicated in secret recording - BBC News
A secret recording that implicates the Bank of England in the Libor rigging scandal has been uncovered by the BBC's Panorama programme. Libor is the rate at whi...
A secret recording that implicates the Bank of England in the Libor rigging scandal has been uncovered by the BBC's Panorama programme. Libor is the rate at which banks lend money to each other and it sets a benchmark for mortgages and loans for regular customers. The 2008 recording adds to evidence the central bank repeatedly pressured commercial banks during the financial crisis to push their Libor rates down.
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https://wn.com/Libor_Bank_Of_England_Implicated_In_Secret_Recording_BBC_News
A secret recording that implicates the Bank of England in the Libor rigging scandal has been uncovered by the BBC's Panorama programme. Libor is the rate at which banks lend money to each other and it sets a benchmark for mortgages and loans for regular customers. The 2008 recording adds to evidence the central bank repeatedly pressured commercial banks during the financial crisis to push their Libor rates down.
Please subscribe HERE http://bit.ly/1rbfUog
World In Pictures https://www.youtube.com/playlist?list=PLS3XGZxi7cBX37n4R0UGJN-TLiQOm7ZTP
Big Hitters https://www.youtube.com/playlist?list=PLS3XGZxi7cBUME-LUrFkDwFmiEc3jwMXP
Just Good News https://www.youtube.com/playlist?list=PLS3XGZxi7cBUsYo_P26cjihXLN-k3w246
- published: 11 Apr 2017
- views: 21181
5:52
How Barclays manipulated the libor rates
Subscribe to our channel http://bit.ly/AJSubscribe
The Barclays Bank scandal centres around a key interest rate known as Libor. Al Jazeera's Dominic Kane repor...
Subscribe to our channel http://bit.ly/AJSubscribe
The Barclays Bank scandal centres around a key interest rate known as Libor. Al Jazeera's Dominic Kane reports on exactly what that is. We also speak to Bill Black, a former US banking regulator for more clarity on how this multi-million dollar fraud was perpetrated.
At Al Jazeera English, we focus on people and events that affect people's lives. We bring topics to light that often go under-reported, listening to all sides of the story and giving a 'voice to the voiceless.'
Reaching more than 270 million households in over 140 countries across the globe, our viewers trust Al Jazeera English to keep them informed, inspired, and entertained.
Our impartial, fact-based reporting wins worldwide praise and respect. It is our unique brand of journalism that the world has come to rely on.
We are reshaping global media and constantly working to strengthen our reputation as one of the world's most respected news and current affairs channels.
Social Media links:
Facebook: https://www.facebook.com/aljazeera
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google+: https://plus.google.com/+aljazeera/posts
https://wn.com/How_Barclays_Manipulated_The_Libor_Rates
Subscribe to our channel http://bit.ly/AJSubscribe
The Barclays Bank scandal centres around a key interest rate known as Libor. Al Jazeera's Dominic Kane reports on exactly what that is. We also speak to Bill Black, a former US banking regulator for more clarity on how this multi-million dollar fraud was perpetrated.
At Al Jazeera English, we focus on people and events that affect people's lives. We bring topics to light that often go under-reported, listening to all sides of the story and giving a 'voice to the voiceless.'
Reaching more than 270 million households in over 140 countries across the globe, our viewers trust Al Jazeera English to keep them informed, inspired, and entertained.
Our impartial, fact-based reporting wins worldwide praise and respect. It is our unique brand of journalism that the world has come to rely on.
We are reshaping global media and constantly working to strengthen our reputation as one of the world's most respected news and current affairs channels.
Social Media links:
Facebook: https://www.facebook.com/aljazeera
Instagram: https://instagram.com/aljazeera/?ref=...
Twitter: https://twitter.com/ajenglish
Website: http://www.aljazeera.com/
google+: https://plus.google.com/+aljazeera/posts
- published: 03 Jul 2012
- views: 49720
2:51
The Libor Scandal: Three Things to Know
Following investigations into Barclays' manipulation of London Interbank Offered Rates (Libor), CFR's Sebastian Mallaby highlights three implications from the u...
Following investigations into Barclays' manipulation of London Interbank Offered Rates (Libor), CFR's Sebastian Mallaby highlights three implications from the unfolding scandal:
Conflicts of Interest Within Banks: Barclays' distorted reports on borrowing rates demonstrate the system's failure to prevent damage from conflicts of interest between banks and their traders. "Chinese walls don't work," Mallaby says. "It's a lesson we've learned over and over again in finance."
The Role of Regulators: The alleged collusion between the Bank of England and Barclays indicates a critical challenge in the governance of financial markets: Regulators are forced to bend rules to protect banks, "not because they are bribed," says Mallaby, "but because they are blackmailed, in the sense that the banks, by threatening to go under and do untold damage to the economy, can force regulators to bend the rules on their behalf."
Responding to the Scandal: Calls for cultural change and for executives to give up remuneration simply scratch the surface, Mallaby argues. "The real lesson to be learned here is that banks which are too big to fail are also too big to exist," he says.
http://www.cfr.org/international-finance/libor-scandal-three-things-know/p28687
https://wn.com/The_Libor_Scandal_Three_Things_To_Know
Following investigations into Barclays' manipulation of London Interbank Offered Rates (Libor), CFR's Sebastian Mallaby highlights three implications from the unfolding scandal:
Conflicts of Interest Within Banks: Barclays' distorted reports on borrowing rates demonstrate the system's failure to prevent damage from conflicts of interest between banks and their traders. "Chinese walls don't work," Mallaby says. "It's a lesson we've learned over and over again in finance."
The Role of Regulators: The alleged collusion between the Bank of England and Barclays indicates a critical challenge in the governance of financial markets: Regulators are forced to bend rules to protect banks, "not because they are bribed," says Mallaby, "but because they are blackmailed, in the sense that the banks, by threatening to go under and do untold damage to the economy, can force regulators to bend the rules on their behalf."
Responding to the Scandal: Calls for cultural change and for executives to give up remuneration simply scratch the surface, Mallaby argues. "The real lesson to be learned here is that banks which are too big to fail are also too big to exist," he says.
http://www.cfr.org/international-finance/libor-scandal-three-things-know/p28687
- published: 10 Jul 2012
- views: 18399
5:02
How Interest Rates Work (LIBOR vs SOFR)
How are interest rates set and modified? Rates change constantly, based on base rates banks pay to each other for lending money between themselves. The London I...
How are interest rates set and modified? Rates change constantly, based on base rates banks pay to each other for lending money between themselves. The London InterBank Offered Rate (LIBOR) was the common standard in the USA, before scandal broke trust. Secured Overnight Financing Rate (SOFR) is the emerging successor.
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https://www.youtube.com/channel/UCqQDPubh1uiyy0NMIRGHYqg/
https://wn.com/How_Interest_Rates_Work_(Libor_Vs_Sofr)
How are interest rates set and modified? Rates change constantly, based on base rates banks pay to each other for lending money between themselves. The London InterBank Offered Rate (LIBOR) was the common standard in the USA, before scandal broke trust. Secured Overnight Financing Rate (SOFR) is the emerging successor.
We offer large and small courses on finance, business administration, accounting, and more. Visit our web site: https://sticelearning.com
We post about current events frequently, so if you want more, subscribe and turn on notifications for this channel!
https://www.youtube.com/channel/UCqQDPubh1uiyy0NMIRGHYqg/
- published: 24 Nov 2021
- views: 15452