Greg Hunter: Libor Lie – A Black Swan?

• Keep in mind that a contract entered into based on fraud by 1 party is null and void legally. Can you imagine all customers seeking compensation from banksters for the fraud perpetrated on them(for the past few decades) to the tune of tens of trillions of dollars? Can you imagine what will happen should the US$700T – US$1,500T of derivatives be declared null and void? All the fraudulent financial derivatives contracts will be worth ZERO! Major western banks will be destroyed overnight! The global financial meltdown will begin.
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  Libor Lie – A Black Swan? 
  by Greg Hunter’s USAWatchdog.com 
  The Libor interest rate rigging scandal is being called the biggest financial fraud in history.  Libor is a key interest rate that is used globally to set as much as $800 trillion in transactions.  It is used to set interest rates for things such as credit cards, student loans, mortgages, corporate bonds and hundreds of trillions of dollars in derivatives.   Libor stands for the London Inter-Bank Offered Rate.  It is supposed to be an estimate of what it would cost for some of the biggest banks in the world to borrow money from one another.  Sixteen global banks are involved in setting the rate, three of which are in the U.S. (JP Morgan, B of A, and Citi.)  It was recently revealed by Barclays Bank (in the UK) that this key interest rate quoted by most of these banks was nothing more than a gigantic rate rigging scheme.
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  In a financial system reeling from one fraud after another, this is the mother of all rip-offs by the banksters.  Karl Denninger of Market-ticker.org calls this, “the largest organized theft ever committed in human history.”  This has already brought out lawsuits by the dozens from investors and institutions who say they were cheated by Libor rate rigging.  Who’s suing the big banks?  A better question might be who’s not suing?  Let’s start with investors both big and small.  CNN reported last week, “With Libor’s alleged suppression, Charles Schwab says, it was deprived of the higher interest payments it deserved.  In another complaint, individual investor Ellen Gelboim claims she purchased corporate bonds that paid variable interest based on Libor, and suffered lower returns as the banks held the rate down.”  (Click here for the complete CNN story.)  These lawsuits and others have been combined into one in federal court in New York, but avalanches of new cases are coming.
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  read more!

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