Competition Law and LIBOR in Three Jurisdictions: The United States of America, the United Kingdom and the European Union
The London Interbank Offered Rate, better known as LIBOR, has ridden turbulent times over the last decade. Major banks, either through the collusion of individual traders operating on a discrete basis or on the instructions from more senior personnel, but always trading across national borders and on a global level, fixed the rate for at least four years. This resultant rigged market worked to limit competition and led to massive profits for the banks and individual traders. Furthermore, it enabled banks to be insulated from the shocks of the market during the financial crisis of 2007–8 and the consequences of that crisis. This chapter will investigate this market manipulation through the lens of competition law, and specifically price fixing, from the perspective of the three jurisdictions of the USA, the EU and the UK.