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MTA should squeeze banks, not riders

August 15, 2012

By John Samuelsen And Camille Rivera : NEW YORK DAILY NEWS – excerpt

Messing with Libor cost millions (correction, billions)

Instead of raising fares and proposing to charge riders a fee when they have to buy a new MetroCard, the Metropolitan Transportation Authority should be looking to recoup millions of dollars that the big banks may have improperly charged them.
After crashing Wall Street and costing tens of thousands of workers their jobs and homes, now we find out that big banks have been accused of manipulating key benchmark interest rates that underpin many loans and financial products — potentially costing governments, investors and consumers billions of dollars.
Libor — or the London Interbank Offered Rate — is a rate based on how much interest big banks would expect to pay to borrow money from one another. Interest rates for everyday things like student loans, credit cards and mortgages, and even long-term debt that big institutions like the MTA carry, are often pegged to the Libor rate, too…

All of this leaves the 99% paying for deals created — and possibly manipulated — by and for the 1%. Enough is enough…

(more)

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