Seeking Alpha

Bank shareholders have no idea what kind of liability they're facing from the Libor probe....

Bank shareholders have no idea what kind of liability they're facing from the Libor probe. Barclays, for example, dropped 16% the day after being blindsided by a $451.4M regulatory fine. More than a dozen banks are being probed, are providing minimal disclosures and are probably failing to put enough funds in reserve for potential fines.
Comments (5)
  • Summer Sea
    , contributor
    Comments (92) | Send Message
     
    Mortgage brokers and bankers use the Libor as a standard to base their interest rates, determining their profit margin. If a home loan was issued using a bogus Libor rate then the mortgage document, signed by the lien holder and the homeowner is now based on fraudulent information. Now what??
    5 Jul 2012, 11:54 AM Reply Like
  • zorn
    , contributor
    Comments (21) | Send Message
     
    What a mess, the pain for long investors continues. Maybe it's time to drop the financials. I think there are only a few of us still hanging on anyhow.
    7 Jul 2012, 02:39 AM Reply Like
  • zorn
    , contributor
    Comments (21) | Send Message
     
    It is sort of interesting to note that the traders on cnbc seam to be long on BAC. I venture to say only because they are not willing to sell at a loss. After all they have to answer to the clients.
    7 Jul 2012, 02:45 AM Reply Like
  • zorn
    , contributor
    Comments (21) | Send Message
     
    I can see a lot more litigation on the mortgage debacle coming out of this hoodwink. Summer Sea
    7 Jul 2012, 02:48 AM Reply Like
  • zorn
    , contributor
    Comments (21) | Send Message
     
    I will hold to the second Q. on BAC, after that all bets are off.
    7 Jul 2012, 02:51 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|