Do you believe in banking conspiracies?
Occasionally our coach (Lee Honish) goes off on tangents that even surprise us. We would chalk some of his posts, theories, ideas to conspiracies, experience working in a bank, lack off sleep, too much caffeine and this latest post we think come via a combination of the aforementioned list.
In his post he talks about the LIBOR (The London Interbank Offered Rate) which is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks and the supposed evil doings of HSBC (and other banks). Enjoy his musings.
The LIBOR 16 & HSBC Terror Supporter
How encouraging to catch up on the news last night only to discover that, while there are still no conspiracies in the world, you can never fault greed and human nature.
I tend to get all of my news in 2 sources: BBC or The Daily Show with John Stewart…
“Lee you must be a bleeding heart liberal”
NO, in fact I think both sides are extremely insane in their politics and world view…
So, much to my surprise after watching a few episodes of the daily show to find out about HSBC and the LIBOR people (who knew they were actually people?) were both in trouble for some phenomenally insane practices!
The LIBOR Group
For those who do not know, LIBOR is the rate by which money is lent from bank to bank. I thought, as did many, that this was somehow created by a master computer formula based on a Boolean equation in the bowls of Barclays. At the very least it was a bunch of men and women sitting around a conference room behind closed doors discussing what the rate should be based on the worlds economics…
FOR GOODNESS SAKE, It is the rate by which we base our adjustable rate mortgages on in the United States…
Apparently the rate is set by 16 guys in London and you can send them an email and change the rate to help your bank…
Meaning that the actual LIBOR rate is complete CRAP and means JACK-SQUAT!
How does this effect homeowners?
I am sure there will be some wise-guy-attorneys who think they will now overturn mortgages that were based on adjustable rates based on the LIBOR for homeowners who are not making any payments. Further it will have zero bearing and all of these cases will get tossed out of court and one level or another. It’s the equivalent of clouded title and robo-signing of documents. There is a possibility it could be used as an escalation and even possibly used to purchase a property below actual fair market value (which is currently artificially accelerating from the lack of inventory and liquidation of REO’s).
HSBC (Hong Kong and Shanghai Banking Corporation), Terror Cells and Money laundering!
Yes, you read that correctly, HSBC has links to (including but not limited to) Terror Cells and Money Laundering. They also gave a campaign contribution to Michelle Bachman and that just makes HSBC look bad for supporting a not-so-bright-yet-attractive politician.
I am wondering on the supposed lawyer-fringe thinking on this for homeowners…
“My client no longer wants to make payments to HSBC because they have been know to support Terrorists, Drug Cartels, and Michelle Bachman…”
“My client fears that they will be watched by the TSA for supporting terrorists and Cartels”
“My client fears Michelle Bachman may campaign on their door…”
Whatever the case, it was a ‘bar’ set by MANY banks including Chase, Bank of America, and Wells and that was long ago and far away for them. Almost every bank in the United States has allegedly accepted money from questionable sources. I would guarantee that many banks at this very moment have money that comes from ‘blood diamonds’, ‘child labor’ or they have all supported DUMB politicians!
MY GREATEST FEAR IN ALL OF THIS…
Obviously an attorney will try and use these in an attempt to get a homeowner out of payments and they will fail! Far worse, it is the media perception that will be handed down to homeowners…
“I heard on the news that the president is mad at the LIBOR thing and he is gonna give us our home for FREE”
“My loan is with HSBC and I know someone who got their house for free cause they hired an attorney and sued them for supporting Michelle Bachman”
Photo courtesy Wikipedia