Legal Disclaimer

  • This blog is made available by the law firm of Dickinson, Mackaman, Tyler & Hagen, P.C. for educational purposes only. It is intended to provide general information and a general understanding of the law, but not specific legal advice. This blog should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. Use of this blog does not create an attorney-client relationship between you and Dickinson, Mackaman, Tyler & Hagen, P.C. or any of its attorneys. The content of this blog is not an advertisement for legal services, nor is it an invitation to form an attorney-client relationship. Statements made in this blog are the viewpoints of the individual authors, and do not necessarily reflect the views of Dickinson, Mackaman, Tyler & Hagen, P.C. or any of its clients. Although this blog may address certain tax issues, it is not intended to constitute a reliance opinion as described in IRS Circular 230 and, therefore, cannot be relied upon by itself to avoid any tax penalties.

« Fed Approves Energy Managment and Tolling | Main | Uk Rules that Overdraft Fees Can be Judged for Fairness »

Friday, April 25, 2008

Is LIBOR Accurate?

The Banking Law Prof Blog has a brief discussion and link to a Wall Street Journal article suggesting that LIBOR (the London inter-bank offered rate) may be artificially low.  Banks in trouble may have been reporting lower rates for inter bank borrowing because they don't want to own up to their actual financial condition.  See Banking Law Prof Blog Article.  So, consumers had been puffing their credit to get home loans, if they are even asked.  Unregulated mortgage brokers puffed, or neglected to fully explain, the financial terms of mortgages they were handing out left and right.  These loans were then securitized and sent down the line.  Now, after those loans went south, partially causing our current economic "slow down," institutions are puffing the interest rate they are getting?  Is the state of the economy being puffed to us?  Let's hope all the huffing and puffing doesn't blow this house down.   

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83513f43f53ef00e551f8949b8833

Listed below are links to weblogs that reference Is LIBOR Accurate?:

Comments

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Firm Website

Enter your email address:

Delivered by FeedBurner

Iowa LLC Blog