The Biggest Price-Fixing Scandal Ever | Rolling Stone

20130423-national-affairs-600-1366749334The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the worlds largest banks may be fixing the prices of, well, just about everything.

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion thats trillion, with a “t” worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it “dwarfs by orders of magnitude any financial scam in the history of markets.

“That was bad enough, but now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the worlds largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the worlds largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps.

via The Biggest Price-Fixing Scandal Ever | Politics News | Rolling Stone.

This post has already been read 1173 times!