LIBOR scandal and everyone's cash!

[pocster]

Hey all!

 

Does this mean potentially any loans,mortgages, credit cards etc could of been charged at a higher APR????

If so, are we about too see (like we did with PPI) companies offering 'no win no fee' to reclaim our overpaid costs?

Presumably the FSA has to rule on this first like it did with PPI.

How many times can the banks be crooks and get away with it!

 

Cheers

[lookinforinfo]

If so, are we about too see (like we did with PPI) companies offering 'no win no fee' to reclaim our overpaid costs?Cheers

 

It's not too likely. Apparently most mortgage rates are not based on the Libor rate. In any case, for much of the time the banks were attempting to

reduce the interest rate which would have been help for most of the time for the relevant mortgagees.

Those who did lose out were companies that had taken out policies as a hedge against interest rates going down when they had large loans outstanding.

They were caught by the double whammy of the economy being so bad that interest rates were [and still are] reduced to virtually nil as well as the banks

engineering the rates downward before that time so that they could make a bigger profit and make it look as if their banks were more solvent than they actually were.

[Bang!]

As there are allegations the government were in favour of it happening, then the rates would be lowered (which in turn would offer the banks access to potentially cheaper money).

 

The only losers would be investors with bonds linked to LIBOR rates who would receive less.

 

It amazes me that everyone seems surprised Barclays were doing this, as they hardly kept it quiet!