Comments on: The week that changed everything http://www.debtonation.org/2008/09/the-week-that-changed-everything/ Wed, 08 Feb 2012 08:39:46 +0000 hourly 1 By: ann http://www.debtonation.org/2008/09/the-week-that-changed-everything/comment-page-1/#comment-150 ann Tue, 23 Sep 2008 22:21:14 +0000 http://debtonation.org/?p=144#comment-150 Brian, Thank you for your comment. My point is that they are not public banks. These rates are not being set by a central bank committee publicly accountable and able to ensure that the rate set suits all sectors of society - both industry in the broadest sense, and labour, not just the finance sector. The LIBOR rate is set, as you seem to agree, to suit the finance sector. Secondly, while the rate may 'be based on the inut of 16 banks active in the whole sale markets' - it is not set by these banks. I know, as no doubt you do, that there has been considerable disquiet these last few months, over how the LIBOR rate is set - disquiet that has caused the BBA to become defensive of its procedures. Brian, Thank you for your comment. My point is that they are not public banks. These rates are not being set by a central

bank committee publicly accountable and able to ensure that the rate set suits all sectors of society – both industry in the broadest sense, and

labour, not just the finance sector. The LIBOR rate is set, as you seem to agree, to suit the finance sector.

Secondly, while the rate may

‘be based on the inut of 16 banks active in the whole sale markets’ – it is not set by these banks. I know, as no doubt you do, that there has

been considerable disquiet these last few months, over how the LIBOR rate is set – disquiet that has caused the BBA to become defensive of its

procedures.

]]> By: Brian Mairs http://www.debtonation.org/2008/09/the-week-that-changed-everything/comment-page-1/#comment-149 Brian Mairs Tue, 23 Sep 2008 13:48:34 +0000 http://debtonation.org/?p=144#comment-149 But BBA LIBOR isn't set by "a closed committee of private bankers meeting daily at the British Bankers' Association". It's calculated for the BBA every morning by Thomson Reuters, based on the input of 16 banks active in the wholesale markets (they are certainly not private bankers). The banks submit the rates at which they would expect to borrow from a prime bank in the London market, in 10 currencies and 15 maturities. This is the most transparent benchmark you will find in daily use - and that is why it is so widely used. You do not need to misrepresent this rigorous, transparent and time-proven process to make your point. Badly done. But BBA LIBOR isn’t set by “a closed committee of private bankers meeting daily at the British Bankers’

Association”. It’s calculated for the BBA every morning by Thomson Reuters, based on the input of 16 banks active in the wholesale markets (they

are certainly not private bankers). The banks submit the rates at which they would expect to borrow from a prime bank in the London market, in 10

currencies and 15 maturities. This is the most transparent benchmark you will find in daily use – and that is why it is so widely used.

You

do not need to misrepresent this rigorous, transparent and time-proven process to make your point. Badly done.

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