Back in March, I wrote about a scandal that seemed to be flying under the radar: allegations that lenders had been
conspiring to manipulate the LIBOR rate. Many adjustable rate mortgages are based on the LIBOR, and an artificial manipulation of the rate could potentially mean billions of additional dollars in lenders' pockets. I wondered why this wasn't bigger news. Well, get ready. MSNBC says the
LIBOR scandal is about to hit the U.S., and it has the potential to become "the largest financial fraud in history." Oh that's nice. Because we haven't had one of those in a while.
Update 07/15/12: The
U.S. Justice Department prepares criminal cases against several lenders.
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