Bank of America and Citigroup under investigation
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The Justice Department and the SEC are investigating whether banks colluded to hold down a key interest rate before and during the financial crisis, sources tell the Wall Street Journal.
The London interbank offered rate, or Libor, is calculated based on banks’ self-reported borrowing costs. But from 2006 to 2008 some banks, most notably Bank of America and Citigroup, reported remarkably similar costs, even though each company had different pressures operating on it.
Banks had plenty of reason to fudge their responses—if any of them was seen as borrowing at a higher cost than competitors, it would send a signal of weakness to the market. Keeping Libor low by underreporting wouldn’t hurt borrowers, but it could hurt lenders, and lead to mispriced derivatives. Still, collusion will be tough to prove, experts say. Investigators would likely need either smoking-gun emails or documents, or testimony from multiple witnesses.
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The FEDERAL RESERVE is at the root of all that is rotten with the U.S. economy, and is made up of foreign banks as well as U.S. banks. Can you say, “Taxation without representation?” I thought we fought the revolutionary war to free ourselves from the Bank of England!! (One of the bank that make up/own the PRIVATELY OWNED FED). BofA? Citigroup? They are ALL CORRUPT. Bank with a credit union or at least a small regional bank!
As soon as you say the word ‘Banks’ you just know it’s corrupt.
Welcome to humanity Holty…where you been?
All of the big banks are run by the big money people who, in turn, run our politicians who, in turn, run the government which, in turn, screws over anyone not in the aforementioned groups.
I switched from BOA several years ago and never looked back. Their customer service sucks and there’s always some sort of fee or other. I hate them.