[HereInTheHeartland]

The way I understand this; bank self reported LIBOR rates were being self reported as LOWER than what the banks were actually paying to borrow money from each other.

This was done to mask how much of a premium they had to pay to borrow money.

So if mortgage reset rates on ARMs are quoted from LIBOR; would the consumers not have gotten lower rates on their mortgages?

I must be missing something here.

[C19fan]

I am thinking the same thing. I think the banks would manipulate the LIBOR based on their trading position to make a profit. So on some days the bank would profit by making the LIBOR artificially high.