Lesson from Bankers

I was a banker once. Libor was then a sacred rate … we believed that conservative dark blue suited bankers in London stared at their computer screens; read the quotes on bid and offer and then advised the bankers’ association of the London rates… we then re-fixed all rates all over the world in alignment with the London bankers. So we looked to London from far Pacific to Indian to near Atlantic…and the Bank for International Settlement said that London was the centre with maximimum volumes of foreign exchange trades… we admired that this was on account of integrity of the professional London bankers…

All that myth collapsed this week with the Libor fixing fraud….

My idols have feet of clay…

Note:: London Inter Bank Offered Rate. The rate at which banks in London lend money to each other for the short-term in a particular currency. A new Libor rate is calculated every morning by financial data firm Thomson Reuters based on interest rates provided by members of the British Bankers Association

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3 thoughts on “Lesson from Bankers

  1. Well, I haven’t read about the Libor scandel yet, but I’ll catch up.
    I know exactly what you mean about “idols with feet of clay”, though, oh too well. From priests to husbands. No one can be trusted.

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