London Interbank Offered Rate (LIBOR) Scandal

The LIBOR scandal erupted in June 2012 with revelations in the United Kingdom that the major bank Barclays had manipulated the London Interbank Offered Rate (LIBOR). The public disclosure that this interest rate, which was referenced in more than $300 trillion in loans and financial derivatives worldwide, had been manipulated by several prominent banks for their own benefit since at least 2003 not only threatened the banks involved and the individuals in them with highly damaging legal action but also seriously eroded trust in the entire banking system. During the period of the LIBOR scandal, allegations of manipulation were also made with regard to the Euro Interbank Offered Rate (Euribor) and several other widely used measures.