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Going Mental Over Libor – The Other Side of the Debate

Kate Mackenzie and Izabella Kaminska have a very fair and detailed critique of my thinking on the LIBOR scandal over at FT Alphaville (which, if you don’t read, is an absolute must).   I must admit I was probably a bit general in my analysis (David Merkel was much more detailed and comes to similar conclusions) so it was not surprising to see some commenters come away with the impression that I thought think this whole thing is a non-event.  Quite the contrary.  I think this sheds further light on a massive problem regarding bank disclosure, regulations, among other things.

The broader point is that I thought some pundits were being a bit hyperbolic in claiming that this was the scandal of the ages or something like that. Anyway, I won’t regurgitate what I said, but in the interest of offering both sides of the story, I thought the FT’s critique was very fair, detailed and offers some good counter-points to my thinking.  Read it here.

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