Here's a preliminary report for you.
How do you think the U.S. "Prime Rate" is set?
The same way as LIBOR.
It is simply a consensus as to the rate at which banks are willing to charge each other to loan money to each other, if needed for liquidity or other purposes.
There is no conspiracy here.
What other people do with the "Prime Rate" or "LIBOR" after either one is made public is their own business.
There really is no boogeyman here.
It has nothing to do with consumers unless they seek and accept a loan tied to that index.
You’re getting bad info, buddy.
Libor is not set by consensus. Libor is set by day-to-day market transactions. At least that’s the way it’s meant to be set.
The UK Financial Conduct Authority, led by Martin Wheatley, is taking down the British Bankers’ Association (BBA) overseeing Libor. Both US and British regulators have fined Barclays £290m. That’s just the start. By the time all is said and done, that number could easily top £30b.
The banking conspiracy is widespread and will ensnare a good number of bankers in the US and UK. The UK High Court is not pleased and is demanding some very embarassing information. This is a major scandal.