LIBOR Liabilities: How litigation will drive down banks profitability for years to come...

Until this summer, the London Interbank Rate Offering Rate (LIBOR) was an omnipresent seemingly esoteric instrument that few non-financial people actually paid attention to other than knowing that their interest rate was somehow linked to it. The benchmark rate is used for approximately $350 trillion in financial products making it an virtually indispensable, intricate part of global finance. The British Banker’s Association (BBA) decided in late September to accept the Wheatley proposal,...