Not far enough

The International Organization of Securities Commissioners (IOSCO) published a report this week calling for the London interbank offered rate (Libor) and other such benchmark interest rates to be tied more closely to actual transactions. Sadly, the proposal does not go far enough. I have written about Libor on a number of occasions (see here, here, … Read moreNot far enough

Your cheatin’ Alma Mater

It was reported this week that Bucknell University has been providing inflated information on the SAT scores of its incoming students for several years.  The news follow similar revelations in recent months about a number of universities, including George Washington University, Emory University, and Tulane University Business School. The news puts these elite universities in … Read moreYour cheatin’ Alma Mater

Libor needs to be scrapped—not reformed

Last Friday, a top British top financial regulator issued a report suggesting numerous reforms to the London Interbank Offered Rate (Libor).  Libor, a benchmark interest rate that affects more than $300 trillion in financial transactions, is constructed from the cost of funds estimates submitted by a handful of large banks.  This summer, e-mails surfaced showing … Read moreLibor needs to be scrapped—not reformed

The biggest threat to capitalism

Most of us spend more time thinking about the latest London Olympics results than the scandal surrounding the London InterBank Offered Rate, or Libor. That is a big mistake. We should be paying more attention to the Libor scandal.  And we should be terrified. The public has been so fatigued by the flood of awful … Read moreThe biggest threat to capitalism

Musings on Libor

Here are a couple of recent musings on Libor. “Bankers Should Take A Lesson From The Mob,” was slated to appear in today’s Hartford Courant. “5 Questions With . . . Richard Grossman on the Libor Scandal,” an interview with Lauren Rubenstein, appeared in the Wesleyan Connection a few days before.