no, for manipulating a reference price and spoofing the market. Colluding to up the central egg price

So, the defendants are guilty of paying for the things they offered to pay for?

Undisciplined

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If there's a central reference rate, it will be manipulated

 is whatever price balances supply and demand on the exchange: If egg producers want eggs, they bid for them; if they have extra eggs, they offer them. There is some market-clearing price, and producers who need extra eggs pay that price.

Because of course there's an egg clearinghouse you've never heard of!

Turns out, egg producers and wholesale entities price contracts for egg 

on this central Egg Clearinghouse-maintained price

The market price on the Egg Clearinghouse determines the wholesale price charged to customers. “Egg Clearinghouse Inc. is nationally recognized as an exchange to help determine and establish the market value for eggs and egg products,” says 

 “This is known as ‘Price Discovery.’”

"I could stop there. This is a familiar story and you probably know the ending."

That is the story of, you know, half the stuff I write about. That is the story of Libor, the former benchmark interest rate: There was a small interbank lending market and a gigantic interest-rate derivatives market that priced off of the small interbank lending market; manipulating the price in the small interbank lending market was relatively easy and could have lucrative consequences in the big derivatives market

Also, there's some suggestion that the New York AG/treasury hold back or keep some millions of confiscated eggs... 

“Secured more than 50 million eggs,” perfect. I think the second sentence means that the other 48.1 million eggs will be delivered to food banks in the other states that sued, but it would be amazing if New York State kept most of the 

) and portable. Makes for a greeeeat corporate treasury asset, no?

. I gotta rewatch it now. Incredible stuff

econ

Here's a financial law for you

## If there's a central reference rate, it will be manipulated

> The **price of eggs on the Egg Clearinghouse** is whatever price balances supply and demand on the exchange: If egg producers want eggs, they bid for them; if they have extra eggs, they offer them. There is some market-clearing price, and producers who need extra eggs pay that price.

*Because of course there's an egg clearinghouse you've never heard of!*

![](https://m.stacker.news/146898)

Turns out, egg producers and wholesale entities price contracts for egg *on this central Egg Clearinghouse-maintained price*. Oh no, we know where this is going.

> The market price on the Egg Clearinghouse determines the wholesale price charged to customers. “Egg Clearinghouse Inc. is nationally recognized as an exchange to help determine and establish the market value for eggs and egg products,” says **eggs.org.** “This is known as ‘Price Discovery.’”

## "I could stop there. This is a familiar story and you probably know the ending."

> That is the story of, you know, half the stuff I write about. That is the story of Libor, the former benchmark interest rate: There was a small interbank lending market and a gigantic interest-rate derivatives market that priced off of the small interbank lending market; manipulating the price in the small interbank lending market was relatively easy and could have lucrative consequences in the big derivatives market

Yup:

![](https://m.stacker.news/146899)

Also, there's some suggestion that the New York AG/treasury hold back or keep some millions of confiscated eggs... **oh *man* isn't financial crime delicious?!**

> “Secured more than 50 million eggs,” perfect. I think the second sentence means that the other 48.1 million eggs will be delivered to food banks in the other states that sued, but it would be amazing if New York State kept most of the **settlement eggs for the state treasury.**

Eggs are scarce, and pretty divisible (*yum!*) and portable. Makes for a greeeeat corporate treasury asset, no?

***

There's an episode of *Billions* where [Bill is trying to manipulate the price of chicken via the ChickenMan](https://www.youtube.com/watch?v=iPFcqqcWEgQ). I gotta rewatch it now. Incredible stuff

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If there's a central reference rate, it will be manipulatedIf there's a central reference rate, it will be manipulated

"I could stop there. This is a familiar story and you probably know the ending.""I could stop there. This is a familiar story and you probably know the ending."