LIBOR scandal was one of the biggest financial criminal manipulations that have penetrated the international economic system. The scandal was referred to as the rotten heart of finance by some. However, it was different than other financial scandals in the way the illegal activity occurred. Instead of the crime being perpetrated by one individual or a small group, it seemed that the whole organizations in the banks were filled with a toxic culture. The groups basically profited from small changes in the London Interbank Offered Rate or LIBOR.
The LIBOR is an average interest rate that is determined through the average of different interest rates offered by the banks in London. The scandal arose when it was discovered that many of the banks were colluding to manipulate this rate for their own financial gain or to make their bank appear to look better financial in regard to credit worthiness. The scale of this interbank market is enormous with over three hundred trillion dollars traded in derivatives.
The banks are supposed to submit the actual interest rates that they are paying or would realistically expect to pay when borrowing from other banks. The LIBOR is supposed to represent a measure of the total health of the London...
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As a consequence, investors may suffer. Importance of the Study It is necessary and pertinent to discuss the importance of any study, and this particular study is important to many people across many countries. Not only does it have importance for people who are trusting people with their pension and hedge funds in Germany, but it also has importance for people who are considering a career working with these funds and
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