Judge Napolitano: "LIBOR Scandal One of the Largest Bank Orchestrated Frauds in History"
The Department of Justice is reportedly deciding whether to charge banks over growing LIBOR interest rate fixes. The international investment bank Barclays Capital has already paid $450 million in fines for illegally manipulating the rates that banks charge each other to borrow money. That rate affects everything from credit cards to car loans and mortgage rates. Shepard Smith reported that it remains to be seen whether Treasury Secretary Timothy Geithner knew about the rate manipulation when he was head of the Federal Reserve Bank of New York.
Judge Andrew Napolitano explained the importance of the LIBOR interest rate, saying, "Think of it this way, the biggest banks in London each morning announce what they're going to charge each other for money and that number is averaged ... Whatever that rate is, is the baseline for millions of other loans and mortgages around the country."