It was surprising for all to know that LIBOR rate is being manipulated by few international Bank of repute to make gain out of it . It is alleaged that LIBOR rate is being kept low/ high depending upon the requirment of few selected Banks . Just recently one leading Bank has agreed to pay huge penalty as part of settlement to US and UK authorities . The penatly is as high as USD 500 Million that too of one Bank . Now other Banks will also be forced to pay huge penalty for manipulating the LIBOR rate to these two authorites and other authorities too .
The manipulation was carried out during the period 2005~2009 and during this period many of the Global borrowers and Lenders might have paid lesser/ higher interest .
This has raised question mark on the reliability of LIBOR as one of the benchmark interest rate for fixing interest rate for global financial deals . As on date as high as USD 360000 Billion of financial contracts are based on LIBOR rate .
The manipulation was carried out during the period 2005~2009 and during this period many of the Global borrowers and Lenders might have paid lesser/ higher interest .
This has raised question mark on the reliability of LIBOR as one of the benchmark interest rate for fixing interest rate for global financial deals . As on date as high as USD 360000 Billion of financial contracts are based on LIBOR rate .
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