When Hypotheses Are Worth Trillions

UK banking regulators and the representatives of major banks intensified their discussions on new and more rigid regulatory scheme concerning the setting and calculating the British Bankers Association's London InterBank Offered Rate (BBALIBOR). Libor, sponsored by the British Bankers Association, is the rate set for the inter-bank borrowing and lending transactions worth £220 trillion of securities a day and is produced for ten currencies with 15 maturities quoted for each currency - ranging from overnight to 12 months - thus producing 150…

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