Libor is dead and with it disappears part of international finance

For fifty-two years, this essential index has served as a benchmark for banks around the world to set interest rates. Shaken by a huge market manipulation scandal dating from 2008, he will have held until December 31, 2021.

The Libor is gone. At age 52, the London Interbank Offered Rate, this “Central index for international finance”, used to set interest rates “On everything from mortgages to student loans, died after a long battle with regulators”, tell the New York Times.

Le Libor, “At the origin of more than 300 trillion dollars [261 481 milliards d’euros] of financial contracts ”, has been “Wiped out after the revelation in 2008 of a market manipulation scandal that lasted for years”. Bankers had figured out how to manipulate this benchmark interest rate index, causing it to go up or down “For the benefit of their bank”, explains the American daily.

As of December 31, Libor can no longer be used to calculate new transactions, “More than six years after a UBS trader was jailed for attempting to manipulate him and others were fired, charged or acquitted”. International banks UBS, Barclays and the Royal Bank of Scotland paid

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