The 30+ year lifespan of the London interbank offered
rate, more commonly referred to as Libor, has been marred in
criticism and controversy.
Alarm bells had indeed been ringing for some time before
October 2017 when the Financial Conduct Authority announced
Libor was set to be shelved for good in 2021. The production of
the rate itself depends on the calculations of a panel of over
200 banks across several continents, all which contribute to
shaping $350 trillion worth of derivative and loan contracts.
To say that Libor could be subject to manipulation is...