Tuesday, July 03, 2012
Romney’s London Money Party Imperiled By Impending Enron-Style Disaster
What is LIBOR, you might be wondering? And who has messed with it? And how exactly will a banking scandal in London have something to do Mitt Romney? Well, what wouldn’t it have to do with Mitt Romney? First things first: LIBOR stands for the London Interbank Offered Rate, and according to the BBC, it is one of the “most crucial rates in finance” because it underpins trillions of dollars in loans and financial contacts, including (OF COURSE!) American mortgages and student loans. And because a bunch of derivatives traders at Barclay have been playing around with this rate and trying to rig it since 2005, your mortgage payments or student loan payments might have been affected this entire time. (Evidence for this rate rigging includes the message “”duuuude… what’s up with ur guys 34.5 3m fix… tell him to get it up!” sent via one trader to another via unknown means. Yes, apparently they talk like this in the U.K. too.) Anyway, this scandal MIGHT (but probably won’t, knowing how these things usually go) lead to the resignation of Barclay’s CEO Bob Diamond, but in the meantime, it has led him to pull out of a Romney fundraiser. Because surprise surprise, the corrupt CEO of a disgraced financial institution was such a big Romney fan that he was going to host a London fundraiser for the candidate. But it’s cool, Romney understands. Also, lots of other Barclays bankers have donated craploads of money to his campaign and even served as his policy advisers, so it’ll all work out.