LIBOR rate is used to price adjustable rate mortgages, car loans, and coporate prime rates.
Traders and executives at Barclay manipulated the rate to profit from trading position.
Barclay paid $450M to settle the charge.
What's shocking is CNBC's Rick's comment: "Central bank is manipulating rates. There is nothink wrong Barcaly trying to do the same thing."
Well, Central Banks manipulate interest rates to foster price stability and economic growth. They do it for the benefit of the society. Barclay did it to profit themselves. There is a difference here.
I found it troubling that financial commentators are justifying illegal behavior. It points to an environment that people lost their sense of right and wrong, and the only goal is to profit, even at the cost of society.
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