How Barclays Rigged the Machine

The LIBOR scandal highlights the dangers of weak global banking regulation

Matthew Lloyd / Getty Images

Diamond wasn't forever The former Barclays chief exits the U.K. Parliament

Ever wonder why surveys about very personal topics (think sex and money) are done anonymously? Of course you don't, because it's obvious that people wouldn't tell the truth if they were identified on the record. That's a key point in understanding the latest scandal to hit the banking industry, which comes, as ever, with much hand-wringing, assorted apologies and a crazy-sounding acronym--this time, LIBOR. That's short for the London interbank offered rate, the interest rate that banks charge one another to borrow money. On June 27, Britain's Barclays bank admitted that it had deliberately understated that rate for years.

LIBOR is...

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