Michael Stephens — Which LIBOR Scandal?

In his recent commentary on the LIBOR scandal, Jan Kregel elaborates on a distinction that is crucial to understanding this story. The scandal centers around revelations that financial institutions had been manipulating their LIBOR rate submissions to the British Bankers’ Association (BBA). Questions have subsequently been raised as to whether regulators were aware of and condoned, or actively encouraged, these manipulations. But as Kregel explains, there were two very different types of manipulation that were going on, and the distinction between the two is acutely relevant to evaluating attempts to pin a major share of the blame for this scandal on regulators and central bank officials.

Read it at Multiplier Effect
Which LIBOR Scandal?
Michael Stephens