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A comment on Was Tom Hayes Running the Biggest Financial Conspiracy in History?. Parent comment

Re:Was Tom Hayes Running the Biggest Financial Conspiracy in... by 0898 on Monday September 14, 2015 @04:32PM (#10217292)
>the real story here: LIBOR is decided by a bunch of banks calling up brokers at random

This. Am I missing something, or is it bizarre that LIBOR came to play such a significant role in the financial markets, given it's so hackable?

A facetious comparison would be how every year people bet on what colour hat the Queen will wear on Ladies Day at Royal Ascot. If suddenly trillions were being staked on this market, could you prosecute a courtier for handing her a strawberry bonnet?

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Re:Was Tom Hayes Running the Biggest Financial Conspiracy in... by tedunangst on Monday September 14, 2015 @08:09PM (#10218260)
It makes sense that the banks started setting LIBOR. It's the rate they lend to each other. Sometime they borrow, sometimes they lend. In theory, everybody voting on a fair rate results in a fair rate.

BUT... Other people saw this rate which looked like a really convenient benchmark, and started using it as a benchmark. Now you have all the makings of a conflict of interest.

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