Banks Behaving Badly

By Econ70 | 07/16/2012
A man in a suit and tie standing on stage.

The LIBOR scandal is the result of greedy banks. But banks are no greedier today than they were decades ago. The difference is now banks are so big, and involved in so many activities (investment banking, commercial banking, insurance, underwriting and derivatives), they continually have large conflicts of interest and are unwilling to create meaningful…

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LIBOR Losing Relevance

By Econ70 | 08/18/2011
A man standing on one foot in front of a large screen.

The London Interbank Offered Rate (LIBOR) is losing relevance. Outstanding LIBOR borrowings have fallen 63% in the past 3 years and it has failed to capture turmoil in the banking sector due to the Euro crisis. Why? Central banks around the world have given banks cheap access to cash, banks have increased customer deposits and…

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