The London Interbank Offered Rate (LIBOR) serves as the primary global benchmark for short-term interest rates for 10 currencies, and is tied to U.S.$350 trillion of financial and retail products, including bank loans, derivatives, interest rate futures and options contracts, mortgages and student loans. LIBOR has historically been regarded as an objective measure of the economic reality and health of the money markets.

However, recent revelations of actual and attempted manipulations of the benchmark by a number of financial institutions have prompted significant regulatory and institutional changes to help restore LIBOR’s integrity and avoid future manipulations. Over U.S.$6 billion in penalties have been imposed so far by regulators in various jurisdictions, criminal charges have been brought against several individuals, and one trader recently pled guilty to conspiring to commit wire fraud and bank fraud in connection with LIBOR manipulation. Charges remain pending against several institutions and individuals, and further settlements are expected.