SOMEONE PLEASE!! Explain this rate-rigging thing!

[stealthpenguin]

I'm not an idiot, but I'm seriously struggling to understand what the banks did, how they did it, and the effect that it had.

Please enlighten me!

I have to admit that I don't even understand one of the most basic features of all this, which is why banks have to lend each other money in the first place. OK, so one day customers withdraw more money than they put in. But so what? Don't banks have loads of money in reserve? And does it matter anyway, on a day-to-day basis, if it's not real money?

Do you remember that recently George Osborne lent £10bn to the IMF? I didn't understand that either. If as a country we're massively in debt, how can we lend money to someone else? Wouldn't we have to borrow it ourselves in the first place?

I think he may be being grilled at 2pm.

Hello

Great thread but not really an AIBU so we've moved it to In The News

MNHQ x