Press Room

In the News

National Real Estate Investor: What the LIBOR Scandal Means for Real Estate

By David Bodamer.

September 12, 2012

Richard K. Green, director of the University of Southern California Lusk Center for Real Estate, has been attempting to create a model to determine whether banks would be more likely to over- or underreport LIBOR given different market conditions.

"The outcome of gaming is not at all clear," Green says. "Weak banks have an incentive to say a low number, so they can borrow at low rates. Strong banks have an incentive to say a high number, so they can lend at higher values."

See link below:

Link: National Real Estate Investor