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Libor Scandal - The Crime of The Century? - YouTube
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the biggest banking scandal in history
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is being ignored by the mainstream media
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and it makes what Bernie Madoff did pale
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in comparison even though he ripped off
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people to the tune of fifty billion
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dollars now it's known as the London
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interbank offer rate or leap or scandal
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and the mainstream media for all intents
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and purposes has chronicled on this
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article on the blaze comm and other
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places but pretty much it's pretty much
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being ignored now what exactly is the
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Liebherr scandal and why does it matter
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the LIBOR is the average interest rate
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that the largest banks in the world pay
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to borrow money now this rate is used
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when pricing hundreds of trillions
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that's what I said
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hundreds of trillions of dollars with
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lumps including large corporate debt all
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the way to student loans and because
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this rate is used to price high-yield
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debt to the biggest borrowers it affects
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most other interest rates in the room
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now just to give you an idea of the
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magnitude of what we're talking about
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here the Liebherr heart affects 10
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different currencies around the world
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and there are 18 US banks on the panel
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that determines that rate the scandal of
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alley bar is that one of the largest
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banks in the world Barclays has admitted
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that it falsified its data so that it's
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borrowing rates would be kept low
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benefitting the company's bottom line
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and some of its or all of its financial
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trades now it gets worse Barclays claims
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that the reason it submitted false data
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was because it had reason to believe
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competitor banks were doing the same
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thing so it sounds like many banks are
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involved in manipulating this very
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crucial rate of interest for currencies
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around the world
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well this data is supposed to do is
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reflect the borrowing cost of the
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world's major banks because this data is
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then used to price a lending rate for
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short term interest rates all over the
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world it obviously needs to be accurate
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thus it could mean that interest rates
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all over the world spanning ten
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currencies have been manipulated so the
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major banks can make more money than
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what a truer picture other financial
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health would have allowed because these
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interest rates have been
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manipulated this then obviously affects
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the real economy all over the world the
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real impact of this scandal was summed
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up by Tony Graham of the New Economics
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Foundation to euronews when he said
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libro drives the interest rates paid by
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hundreds of millions of people on their
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own mortgages small businesses on their
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loans student loans insurance products
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it affects a hugely over range of
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financial transactions globally not just
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in the UK and yes it gets even deeper
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because the New York Fed was told this
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interest rate rigging scheme as far back
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as 2007 is chronicled in this article
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here on the AP news now that was
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obviously before the 2008 recession and
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the near global financial meltdown and
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time and this article here that I linked
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to in the description has even called
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the LIBOR scandal the crime of the
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century not just the financial crime of
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the century the crime of the century we
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are just beginning to see the tip of the
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proverbial iceberg with this scandal as
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15 more banks worldwide are under
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investigation as a result of this
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interest rate manipulation we could see
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huge class action lawsuits criminal
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charges and regulatory complaints and
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big time fines but worst of all this
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could do irreparable harm to the trust
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and the worldwide financial system at a
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time when many are already tired of the
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big bankers and Wall Street fat cats
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we've got Occupy Wall Street and
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whatever's going on there whether you
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believe it or not what their what
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they're doing there and who knows what
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they're doing there people are really
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tired of the financial crimes and
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garbage going on with bankers and Wall
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Street and if all this seems a little
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hard to follow check out the links below
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in the description below this video I've
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linked to all of the articles I
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mentioned here in this video check it
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out for more information pass along and
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I guess we'll just have to wait and see
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what happens with this
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