Libor scandal

The LIBOR scandal involved bank traders manipulating the London Interbank Offered Rate (LIBOR), a key benchmark used to set interest rates globally for loans, mortgages, and financial contracts. Traders falsely reported lower or higher rates to profit from trades or to give the impression their banks were more financially stable than they actually were. This manipulation affected billions of dollars across global markets, undermining trust in the financial system and prompting regulatory reforms. The scandal revealed widespread dishonesty and led to fines, criminal charges, and increased oversight of financial benchmarks.