Daily News: August 28, 2012

Bloomberg: LIBOR’s Trillion-Dollar Question

Bloomberg noted in an article that the global investigation into the manipulation of LIBOR has to go further by forcing banks to release the data needed to determine how much damage was done and who should bear the most responsibility.

Bloomberg said if, for example, underreporting caused LIBOR to be artificially depressed by 0.1 percentage point for only a few months, payments on more than $300 trillion in mortgages, corporate bonds and derivatives tied to the benchmark might have fallen short by about $75 billion or so. If the problem lasted a few years, the shortfall could be close to $1 trillion.

To read the Bloomberg story, click here.