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Economy
In reply to the discussion: Weekend Economists Ride With Sally into the Sunset July 27-29, 2012 [View all]Demeter
(85,373 posts)26. Interest Rates From Sweden to South Korea Under Scrutiny
http://www.bloomberg.com/news/2012-07-19/interest-rates-from-sweden-to-south-korea-under-fresh-scrutiny.html
Regulators from Stockholm to Seoul are re-examining how benchmark borrowing costs are set amid concern they are just as vulnerable to manipulation as the London interbank offered rate.
Stibor, Swedens main interbank rate, Sibor, the leading rate in Singapore, and Tibor in Japan are among rates facing fresh scrutiny because, like Libor, they are based on banks estimated borrowing costs rather than real trades. In some cases they may be easier to rig than Libor as fewer banks contribute to their calculation, according to academics and analysts.
Many of the ingredients which would make it easy to manipulate Libor and collude are common in other benchmarks, said Rosa Abrantes-Metz, an economist with consulting firm Global Economics Group and an associate professor at New York Universitys Stern School of Business. Regulatory agencies are starting to take a look at those and there is a growing sense they need to change.
...With 18 banks on the panel for U.S. dollar Libor and 43 banks for Euribor, only small moves can be achieved by making deliberately high or low submissions. Manipulation becomes easier when fewer banks are contributing, according to Abrantes- Metz at Global Economics. ...
Regulators from Stockholm to Seoul are re-examining how benchmark borrowing costs are set amid concern they are just as vulnerable to manipulation as the London interbank offered rate.
Stibor, Swedens main interbank rate, Sibor, the leading rate in Singapore, and Tibor in Japan are among rates facing fresh scrutiny because, like Libor, they are based on banks estimated borrowing costs rather than real trades. In some cases they may be easier to rig than Libor as fewer banks contribute to their calculation, according to academics and analysts.
Many of the ingredients which would make it easy to manipulate Libor and collude are common in other benchmarks, said Rosa Abrantes-Metz, an economist with consulting firm Global Economics Group and an associate professor at New York Universitys Stern School of Business. Regulatory agencies are starting to take a look at those and there is a growing sense they need to change.
...With 18 banks on the panel for U.S. dollar Libor and 43 banks for Euribor, only small moves can be achieved by making deliberately high or low submissions. Manipulation becomes easier when fewer banks are contributing, according to Abrantes- Metz at Global Economics. ...
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Demeter
Jul 2012
#23
i did -- it was wonderful -- and i love burt lancaster... we love ya hotler -- Peace be with you
xchrom
Jul 2012
#54
But wait, Mayors now can dictate how and what we feed our babies. We are saved! n/t
kickysnana
Jul 2012
#77