As the primary global benchmark for short-term interest rates, the London Interbank Offered Rate (LIBOR) serves as an indicator for many currencies. It is tied to over $350 trillion of financial and retail products, including loans, derivatives, interest rate futures and options contracts, mortgages and student loans. Since 1986, LIBOR has been regarded as a barometer of strain in the money markets and a transparent reflection of economic reality. A number of banks have recently admitted that they attempted to manipulate LIBOR for years.
In this white paper, Richards Kibbe & Orbe LLP attorneys Jon Kibbe, Shari Brandt and Marina Zelinsky provide an overview of the LIBOR framework, the allegations of LIBOR manipulation, and the regulatory and institutional changes that have been implemented to date to help restore LIBOR’s integrity and avoid future manipulations.