The Global Banking Conspiracy that Swindled Investors Out of Billions
In OPEN SECRET Arvedlund reveals how a handful of London and Wall Street traders created and perpetuated a years-long lie in the financial markets, manipulating ordinary investors into paying the wrong interest rates. It was a classic “private understanding” among competitors—you scratch my back today, I’ll scratch yours tomorrow. The cost to the victims: as much as $1 trillion.
In 2012 news broke that several high profile bankers had been colluding to manipulate the London Interbank Offered Rate (LIBOR), the average interest rate among London banks that they would be charged when borrowing from other banks. It’s an essential benchmark for short term interest rates around the world.
Arvedlund takes readers behind the scenes of elite firms like Barclays Capital, where chummy young masters of the universe played fast and loose with other people’s money, while their more seasoned bosses looked the other way—and would later escape much of the blame. She also examines the negligence of prominent regulators and central bankers.
OPEN SECRET fits on the same shelf as business scandal classics like The Smartest Guys in the Room. It’s a lively, surprising drama of greed and corruption that will be relevant for years to come.
Erin Arvedlund is a financial writer and the author of Too Good to Be True: The Rise and Fall of Bernie Madoff (UK/Portfolio; Chinese simplified/Law Press; Dutch/Prometheus; Romanian/Litera). She is currently a columnist for The Philadelphia Inquirer and a contributor to Barron’s, and she has worked as a reporter for a variety of publications, including The New York Times, The Wall Street Journal, and TheStreet.com.