CIBOR scandal in Denmark.
Quote:
Four Danish banks that in 2011 vere among the eight that fixed the CIBOR (Copenhagen Inter Bank Offered Rate), have persistently reported higher interest rates than foreign banks.
Both the Bankers Association and the involved banks remain silent; but analyst wonder . According to Børsen Friday.
The 2011 reports of the CIBOR, which among other uses determines a part of Danish real estate loans, has shown that the four Danish banks Danske Bank A/S (CPH:DANSKE) (PINK:DNSKY) Jyske Bank A/S (CPH:JYSK), Sydbank A/S (CPH:SYDB) og Nykredit Bank quoted a significantly higher interest rate than their foreign competitors thought fair.
Quote:
As far back as September 2011 the Swedish major bank SEB noticed differences, and estimated in an unpublished analysis, that the British banks fixed a more correct CIBOR. The Danish quotes were widely over the target, concludes the manager of SEB’s bonds department Bo Michael Andersen in the analysis.
And continues:
“Royal Bank of Scotland Group plc (NYSE:RBS) and Barclays PLC (LON:BARC) (NYSE:BCS) have consistently quoted CIBOR rates considerably below average.”
Comment:
That is really neat: One rate if you are lending and another for borrowing. It isn’t reported what profits have accumulated by lending to themselves…. This has been reported widely in the media, but CIBOR has not received nearly as much attention.
As there for the past couple of yes has been precious little interbank exchange of liquidity the original purpose of the rate has evaporated – but when you can use it for flaying the costumers……
