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Publication Date

Fall 2014

Abstract

The discussion concerns the manipulation of the LIBOR rate by banks, securities’ firms, and other financial institutions. The LIBOR rate set in London based on the interest rates charged by designated global banks is a determining factor on what interest rates are to be charged to consumers for mortgage loans, other currencies, mutual funds, derivatives, automobiles, and other transactions. The article details how such rates are set, warnings about their fault lines, prosecutions and civil litigations for the said offenses, and legislative enactments to curb wrongful activities.

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