The 'I' Of The LIBOR : Planet Money The LIBOR interest rate was at the center of a huge international scandal back in 2012. Regulators believed it had to replaced. But is that even possible?
NPR logo The 'I' Of The LIBOR

The 'I' Of The LIBOR

A few decades ago, nobody paid much attention to LIBOR. The London Interbank Offered Rate was just an interest rate for loans between banks. It was set by a group of low-level bankers in the bowels of major financial institutions, according to David Enrich, author of The Spider Network. Then banks started using the LIBOR rates to set interest rates for other loans, like mortgages and student loans. A huge scandal ensued, but replacing the infamous rate has proven to be difficult.

Music: "Eye of the Tiger" by Survivor

Find us: Twitter/ Facebook.


Subscribe to our show on Apple Podcasts, PocketCasts and NPR One.