A LIBOR Scandal Primer

What does the acronym, “LIBOR,” stand for? The “London Inter-bank Offered Rate.” What does LIBOR represent? LIBOR is promoted as representing the average interest rate that large banks can borrow from one another. LIBOR is not the interest rate on any single loan. Rather it is an index intended to reflect average interbank interest rates as determined by a defined procedure. LIBOR is not a single interest rate, but is approximately 150 interest rates.

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