Any guesses on the exact time that the Fed, ECB, and Bank of England gave our favorite TBTF CEO’s the orders to make up their own LIBOR statistics rather than reporting their real borrowing rates?
Perhaps the LIBOR chart will assist you:
Rather damning chart, is it not? In the midst of the 2008 financial panic, with LIBOR rates spiking over 7%, they collapse overnight to practically zero, where they remained for the next 4 years.
LIBOR ranged between 2-4% in 2005 for goodness sakes! Does any rational market observer believe JP Morgan and Bank of America are less of a credit risk in 2012 than they were at the height of the bubble in 2005!?!?!