Banks' Defenses to Potential Trillions in Libor Claims Fail
Dead Banks Walking: The comments below by 2 readers to the Zerohedge link are noteworthy and I believe very accurate – Large insolvent banks will now be deluged with lawsuits by hundreds of national and international law firms seeking multiple trillions of dollars in damages……
(1) “It has become quite apparent that the whole financial system is corrupt. As such, it has become incredibly brittle. This means that a black swan event will smash the tower like an angry bird through glass. The simple fact is that all systems are susceptible to an outside energy point. The question becomes one of timing and the context that the source point was received. The leaders are now scared. The advent of computers gave them so much derivative power that they now find themselves being consumed by it on the bottom of their ponzi pyramid. The only conclusion is that conjuring money into existence and then demanding more back than was conjured is Black Hat Alchemy and as such will always fail. This is the straw that breaks the banks backs. No getting around this one and skating free.”
(2) “ This is global in scale. Around $350 trillion of lending and derivatives is priced of LIBOR. If misconduct by banks caused LIBOR to increase by a mere one tenth of one basis point (0.001%), this amounts to $35 billion a year in extra interest. Over 90% of American mortgage rates are directly affected by the LIBOR, as are forward rate agreements, futures contracts, interest rate swaps, floating rate notes, syndicated loans, currencies, (especially the US dollar) and over-the-counter derivatives. To say nothing of insurance, short term paper, over night bills, term deposits, guaranteed investment certificates, credit card rates, revolving credit accounts, etc. You name the financial vehicle and you will find the LIBOR at the foundation of the document. This is HUGE. The fallout from this will be massive. Can't hide it ~ it's out there!”
http://www.zerohedge.com/contributed/2012-07-07/banks%E2%80%99-libor-defense-falls-flat