Libor/euribor dictates the rate of interest you have to pay for a loan/mortgage.
Its meant to be based on the amount of interest that each bank has to pay to receive money, question is can it really be trusted?.
A quick online search leads to several articles on Libor scams and an article has just been released in Spain on which a local lawyer tried to find out what operations are exactly done to define libor(libro is meant to be based on a particular set of operations nobody knows about) on this search he was directed to the national bank agency which directed him to reuters.
Reuters refused to provide him any information until there was a legal procedure and now said local lawyer is suing several banks to try to see if they provide an answer now
Heres the local article(sorry but its in spanish) http://economia.elpais.com/economia/201 ... 92075.html I´ll try to translate it tonight but I was wondering your opinion on this issue.
26 Feb 2012, 8:36 am
