Give me a quote on LIBOR

How LIBOR / EURIBOR is getting rigged?

Each morning at 1100 in London, submitters at panels of some of the world’s biggest banks send their estimates of borrowing costs in various currencies and for various terms. A few minutes later the benchmark figures flash to life on tens to thousands of traders’ machines around the world and ripple out into the pricing of loans, derivatives and other financial instruments. Even if  markets were functioning properly some of the banks submitting estimates would struggle to borrow at any interest rate – let alone the rate they have been submitting. The problem is starkest for EURIBOR – where individual banks have been submitting rates that are likely to be a good deal lower than the rates they would have to pay in actual transactions. The biggest banks in Italy and Spain generally estimate the cost of borrowing Euros for a year at about 1.1%. The rate is much lower than the 4-5% their governments pay to borrow for the same period. Solution – banks that claim one price but actually pay another when they borrow should face a hefty fine.