BBA

The BBA met on Friday to review how the different "ibor" rates are set. It went something like this:

"Well mates, what do we think?"
"I think it's too bloody late. Why did we have to meet at 5pm on a friday to discuss this piss."
"It's those American gits. They think they're the center of the world, so our BRITISH Banker's Association meeting has to meet when it's convenient for them--noon New York time."
"I thought it was supposed to be noon GMT, I was here five hours ago."
(laughter)
"Yea, it was noon Greenwich Mean Time, by which I mean Greenwich Connecticut."
(laughter)
"Alright boys, settle down. So what do we think. The world's making a big deal about LIBOR rates. Doesn't seem they care much about the other rates."
"So we agree that all the other rates will remain the same? All those in favor?"
"AYE!" (all in unison)
"Well, that's settled."
"On to LIBOR, then. There are several options on the table. 1) we claim to keep a close regulatory eye on the banks submitting rates, which will probably keep libor rates high and not change much. 2) we can add a few American banks to the mix, which will probably lower rates a little bit. 3) we can suggest a market based approach, like that used for Euribor. 4) we do nothing."
"Let the American gits suffer and leave it be."
"I say we don't change anything. It's worked this long, why should we change it now? The system is perfect, we just have to let it shake itself out."
"I say we put more pressure on the banks to submit true libor rates or we switch to a market based structure."
"What, are you limit short eurodollars in your PA or something?"
(laughter)
"uh. . . no. . . I'm not a market participant. . . that'd be. . .uh. . .unethical. . ."
"Why don't we just watch it longer? The panic over libor seems to be settling down. Maybe we can wait it out and not have to do anything?"
"Yea, if we have to change something, we can always tape-bomb them later."
(laughter)
"Preferably we can tape bomb them in the morning so the Americans have to get up in the middle of the night to figure it out. You can imagine Colin Corgan (head US swaps trader, GS) getting that call in the middle of the night and having to throw off some blonde hooker to get to a computer."
(more laughter)
"Settle down now."
"I say it's getting too late. We can let's leave this up to another day and head down to the pub."
"AYE!"
"Okay, okay. Are we all in favor of calling it a day and going down to the pub?"
(it was known to be a rhetorical question so they all file out.)
"Hey, who's going to do the press release?"
"Thanks for volunteering. We'll see you at the pub."