Monday, July 30, 2012
Libor scandal is no match for its medieval precedent
That system also led to public outcry, a parliamentary investigation and the impeachment of a famous financier.
A major aim of financial innovation throughout history has been to circumvent regulations and restrictions placed on the industry. In the Middle Ages, an important obstacle was the religious disapproval of usury -- the charging of interest or “making money from money.” Dante condemned the usurer to the lowest level of the seventh circle of Hell. To avoid the “taint of usury,” medieval financiers developed various methods of disguising interest within other transactions.
Click here to read this article from Futures
Labels: Economic History