The Trader 

Libor, Libid, libido

The Trader

The oil crisis of 1973, when crude oil prices soared creating massive surpluses for OPEC, Norway and Russia, and dollar shortages elsewhere, gave rise to the ‘petrodollar’ and then the eurodollar. The latter – US dollars held outside the US – gravitated to Europe’s lightly regulated money market.  This vast pool of new cash lured US investment banks, then European and Japanese ones, finally Russian and Chinese institutions to the City of London. A cheap and less onerous way of setting up a bank without retail deposits.

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