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Who are the winners in the Libor scandal? All of us ...

Friday, July 20, 2012 - 02:43

July 20 - Everyone's a winner if the result of the Libor scandal ends in tighter regulation which helps prevent future financial crises.

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It almost feels there's a winner and a loser. Even and -- and complex ones like those in the light board recruiting scandal so just who are the winners and the losers. Let's start with the losers because of a low interest rates is bad news for savers. Those with cash in mutual funds a money market funds but a suffered with Libor rates being massaged -- Pensioners and those saving for retirement among the hardest hit. Fixing -- technical here but most banks with a sixteen of the world's largest on the Libor setting panel. All the rest particularly the small ones. The struggled to bottle caps at all. When the credit crunch hit and sent Libor rates through the good. That's because they bottled at Libor plus -- This was ultimately the downfall of Britain's northern rock. In terms of -- financial centers one of them could lose its status and prestige as the global financial hub. Libor -- six in London by the but it bankers association. This -- -- the First Financial scandal to match you could deal fixable the city's reputation. And does that lack of faith in the bank spreads. So the global financial system itself loses the confidence of the public. And the market based capitalism and globalization rely on one thing above all else it's confidence but it's about the windows. Bottlers. The besides lower interest rates would have been welcome news for companies businesses and individuals wanting to bottle. Trillions of dollars worth of loans around the world such as mortgages are referenced off -- And the white teeth of the crisis in 20072008. Those banks on the Libor setting -- such as HSBC and Barclays Citigroup. The looking glass to access scarce cash and relatively cheap rates. At London's reputation lost at over the scandal New York's midwest have been enhanced. The Big Apple of course is already a major global financial center and could be the place banks funds and investors turned off by London time towards. It may sound ironic. But the act of Reading these and to find -- to -- it actually helped save the banking system itself. If lifeboat was reported accurately in the 2008. On the separately something Qaeda who knows how many more banks -- want to -- Guns and a similar vein we need all actually be one of every single one of us. If -- be opening of this debate itself some strong effective and lasting regulation of the -- -- financial system to be put on a more stable future. Many choices like this one may not be repeated. -- we give up much of.

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Who are the winners in the Libor scandal? All of us ...

Friday, July 20, 2012 - 02:43