7 Compliance Failures That Facilitated Libor Rigging
January 17, 2013, 4:33 PM EST
Law360, New York (January 17, 2013, 4:33 PM EST) -- It’s deja vu all over again. This time the financial industry’s train wreck is the manipulation of the London interbank offered rate (“Libor”), the global interest rate benchmark used to peg rates use in the full panoply of commercial and consumer financial transactions, including about half of all adjustable rate home mortgages. Libor is set based upon the projected borrowing costs of member banks of the British Bankers’ Association (“BBA”).
On a daily basis, member banks submit interest rates reflecting what they can borrow from each...