Lloyds Got Creative to Manipulate Libor | Bloomberg View

Libor is an interest rate based on a poll:

Someone calls up a bunch of banks, asks them what they think Libor should be, and takes a trimmed average of their answers.

To manipulate that, all you need to do is say the number that you want on the phone. If you’re getting one of those phone calls, the manipulation is free.

via Lloyds Got Creative to Manipulate Libor – Bloomberg View.

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