The alleged LIBOR manipulations may have impacted interest rates used by banks, companies and consumers around the globe. Some have claimed that it could have influenced global economic growth. The alleged activities in the LIBOR litigations include a coordinated manipulation of a set of the most important, widely used interest rates in the world. It is this potentially global impact through a fundamental financial building block that sets the alleged LIBOR manipulations apart from this year’s other risk and regulatory-based banking scandals. It will likely be the source of considerable debate, discussion and litigation, as a broad range of market participants from banking giants, global corporations, and pension funds, to single family mortgage payers and savings account holders assess whether they were damaged and by how much.
Session 1: What is LIBOR? How is it set? Why does it matter?
Instructor: Dr. Timothy Weithers: Former Managing Director, UBS and current Executive Director, Chicago Trading Company.
This session provides the critical background about what the multiple LIBOR rates are, how the major banks set these rates, and why they matter to global financial markets. Dr. Weithers will discuss the following topics:
- How was LIBOR allegedly manipulated by the banks?
- How exactly are LIBORs set?
- What are all of the LIBOR rates?
- Which major currencies around the globe have LIBOR rates?
- What types of banking, corporate and consumer transactions are impacted by LIBOR?
- What countries are impacted by the alleged manipulation?
Fundamental resources defining LIBOR will be provided.