Think that LIBOR only hit international bankers and investors? Think again. LIBOR is causing local governments to cut back on services, which means the loss of employees. This is killing jobs. It may be one of the biggest banking scandals in history. Cities and local banks are fighting back against the LIBOR banking scandal.
Local officials in Nassau County, New York have stipulated that the interest rate scandal has cost them millions of dollars. LIBOR will affect more cities across the United States, and create further hardships on the people that had nothing to do with it.
Baltimore is another city that has laid off workers and has lost money trading SWAPS.
From the Nassau County website:
Nassau County Comptroller George Maragos called for action in response to alleged rigging by the major global financial institutions of the benchmark LIBOR (London Interbank Offered Rate) which may have resulted in the County having been defrauded by up to $13 million. The manipulation potentially caused Nassau County to have overpaid on its LIBOR variable SWAP Agreements backing $600 million in bonds held through the Nassau County Interim Finance Authority (“NIFA”), since 2004.
“I have asked the County Attorney to vigorously investigate and bring legal action, if appropriate, on behalf of the taxpayers of Nassau County to recover any and all overpayments, including punitive damages where statutorily available,” said Comptroller Maragos.
James Bamford (2002)
The National Security Agency is the world’s most powerful, most far-reaching espionage. Now with a new afterword describing the security lapses that preceded the attacks of September 11, 2001, Body of Secrets takes us to the inner sanctum of America’s spy world. In the follow-up to his bestselling Puzzle Palace, James Banford reveals the NSA’s hidden role in the most volatile world events of the past, and its desperate scramble to meet the frightening challenges of today and tomorrow.
