London InterBank Offer Rate. Created by Sal Khan.
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Banks can strategically manipulate the LIBOR for whatever reason. Despite the huge fine imposed on some perpetrators, I believe this is still ongoing. It calls for the need for increased regulatory practices on banks given the impact of LIBOR rates to the global financial economy
Do you have one about a 'LIBOR scandal?'
I'm NOT going to be able to understand any OTHER financial channel's video, b/c they assume you have a full working brain and can actually use it.
Not someone who has medical proof of a traumatic brain injury.
The actual manipulations probably stole pennies per person affected, but it affected a lot of people.
The more chilling part is that they were in cahoots with the government. Part of the problem is that the LIBOR was supposed to show how healthy the financial system is, but government was just as anxious as Wall Street to show that everything was going well. Thus, the crash.
Wikipedia did a good job summing up the scandal.
Which is what's been going on with Barclays and a few other financial institutions recently. Compared to Australia, which uses actual transaction data to set the equivalent of LIBOR (bank bill interest rate or BBSW) as well as rate validation services.
This is a good explanation of what LIBOR is, but I'd be very grateful if someone could explain the actual significance of the manipulation of LIBOR. Obviously this rate impacts upon people's mortgage rates etc., but is it not right that the rate was manipulated so that interest rates were lower? So people with mortgages would pay less interest on them? I've probably way oversimplified it/got it completely wrong, but it would be great if someone could explain this to me.
One thing that I'd like to point out here: Sal mentioned that to calculate the LIBOR, they just take a survey and ask the banks. There isn't a lot of fact checking, from what I hear. Thus, it is subject to manipulation.
To paraphrase Mr. Weasely in The Chamber of Secrets, "Never trust a system if you can't see where it keeps its brains"
Is Sal going start explaining Austrian economics? I'm just curious and I hope he does since most YouTube uploaders, on the subject have a huge bias and aren't even willing to be realistic about the pros and cons.
And furthermore, they don't explain why and how bias towards Keynesian emerged. The worst offenders are the Zeitgeist...
Sometimes you have to maintain your "liquidity" or cash equivalents at a certain level without having to sell something that is not liquid (something that takes a while to make a market to transform to cash) or stocks/bonds/investments you don't want to sell because of taxes, or you think they are going up a lot faster then the interest rate.
People /business take out loans all the time when they could just pay cash. Basically, it's just leverage.
Although foreigners may now invest in A-shares, there is a monthly 20 percent limit on repatriation of funds to foreign countries.
Performance of A-shares.
Since its inception in 1990, including a major reform in 2002, the index has seen great fluctuations. Overall, however, it has grown along with the Chinese economy. The years 2015 to 2016 were a particularly difficult period, with a 52-week performance of -21.55 percent as of July 20, 2016.
As China grows from an emerging market to an advanced economy, there is substantial demand for Chinese equity. Stock exchange regulators continue efforts to make A-shares more broadly available to foreign investors and have them recognized by the global investing community.
In June 2017, the MSCI Emerging Markets Index announced a long-awaited decision it would add stocks to its index. According to CNBC, MSCI will add 222 China A Large Cap stocks to its benchmark emerging markets index gradually beginning in 2018. The MSCI website reveals the stocks it will list include the Bank of China, China Merchants Bank, Guotai Junan, Ping An Insurance, according to a document on Tsingtao Brewery, SAIC Motor, Suning Commerce and Spring Airlines.
Current Dividend Preference.
Participating Preferred Stock.
Convertible Preferred Stock.
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends, plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Significance to Investors.