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New York Stock Exchange to Take Over Libor: And Thats Supposed to Instill Confidence?
By Pam Martens: July 9, 2013
New York Stock Exhange
According to a report out of London this morning, the New York Stock Exchange (NYSE/Euronext) has been selected from a number of bidders to take over administration of Libor, the now discredited, rigged interest rate benchmark that had been previously overseen by the British Bankers Association, a lobbying organization for banks.
The idea that turning over the administration of Libor to the NYSE, whose major shareholders include some of the Wall Street firms currently under investigation for rigging Libor, would restore confidence in using Libor as an interest rate benchmark is
well
typical of Wall Streets irrational thinking.
According to a March 31, 2013 report from Morningstar, the following Wall Street firms are among the major shareholders of NYSE/Euronext: Citigroup, 6.5 million shares; Morgan Stanley, 5.9 million shares; JPMorgan Asset Management (UK) Ltd., 4.9 million shares; Merrill Lynch & Co. Inc., 4.2 million shares; Deutsche Bank AG, 3.7 million shares; Credit Suisse First Boston, 3.6 million shares; Goldman Sachs & Co., 3.1 million shares.
The Board of Directors of NYSE/Euronext includes former executives from across Wall Street, raising further red flags about the independence of the rate setting mechanism.
MORE:
http://wallstreetonparade.com/2013/07/new-york-stock-exchange-to-take-over-libor-and-that%E2%80%99s-supposed-to-instill-confidence/
and:
Wall Street Rips Off 'The Sting'
By MATT TAIBBI
POSTED: July 9, 12:55 PM ET
Read more: http://www.rollingstone.com/politics/blogs/taibblog/wall-street-rips-off-the-sting-20130709#ixzz2YaVZ9NH9
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(53,475 posts)Benton D Struckcheon
(2,347 posts)However, it might just be a good idea. I will confess to not having read the details. All I can say at the moment is that any mechanism chosen would be better than what's used now for setting LIBOR. It's an eighteenth (not even nineteenth) century mechanism being used in a twenty first century world. Even getting it up to the nineteenth century would be a vast improvement.