Costas Lapavitsas: From multimillion dollar losses by cities like Baltimore to pension fund losses and much more, the LIBOR interest rate scandal shows that such mechanisms must be taken out of the hands of banks and be run in public interest
Cities around the country, from Baltimore to Oakland, are taking legal action against the banks
responsible for suppressing the London interbank offered rate, Libor. And some 75% of major cities
involved in libor-tied interest-rate swaps stand to reclaim taxpayer losses in addition to libor-backed
mortgage holders who lost money on the rate's manipulation.