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FBN's Liz MacDonald on whether banks’ alleged rate manipulation helped or hurt homeowners.
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All right thank you Juliette -- -- up eleven great ratings scandal you know starlet Barclays it may be spreading as the McDonald's here with.
Whether the manipulation help.
Or hurt homeowners -- -- here's yet here's Fed Chairman Ben Bernanke yesterday.
Are talking about who is hurt here with this rate rigging scandal.
The information the Fed received was abouts.
The banks possibly submitting low rates in order to appear but to avoid appearing weak during the period of the crisis.
To transcripts of phone calls that were released have no reference to the manipulation.
Of rates for profit.
And here's the deal dead issue now was.
The way Americans against sit up and take notice of this is -- it affects their mortgages.
This this story not -- out right now is C office of comptroller of currency is talking about 900000.
Mortgages tied to -- there were issue between.
05 and 09 with the principal value of tourism by billion dollars 3%.
Of all mortgages outstanding so this is where the controversy now lies now let's take a look at where event -- -- -- -- how was before the three month you can see here Dennis and -- That is basically trending not out of kilter with the Fed Funds rate be good to see in September.
Of 2008 right after Lehman Brothers crashed banks started hoarding cash.
And the Libor rates spiked and Citigroup was so worried about data that times its analyst pat -- reports saying.
Watch out 10% to gonna see it 10% increase in mortgage defaults but here's the bottom line.
The Libor rate controversy is now about the one month and the three month Libor rate.
Not the six month long term rate which mortgages are -- to adjust -- -- detective.
This six month rates of the bottom line is you can exceed more probes into how this affects.
Mortgage -- is down the road guys I think it was McDonald.
