FYI: In 2012, the global markets were rocked by revelations about a scam so massive it was almost hard to comprehend: the LIBOR ( London Interbank Offered Rate) scandal. Like the U.S. federal funds rate, LIBOR is a key benchmark short-term interest rate upon which other financial instruments are based. While the target for the U.S. rate is set by the Fed, LIBOR is the average of self-reported interest rates major banks charge one another to borrow money. By colluding to manipulate LIBOR, the banks’ traders raked in a fortune by betting on assets influenced by the interest rate.
Regards,
Ted
http://knowledge.wharton.upenn.edu/article/libor-scandal/
