The LIBOR scandal, (London Interbank Offered Rate) has been likened to the “Wall Street scandal of all scandals” and the “Rotten heart of Finance”.
The LIBOR scandal is a scandal that has affected 800 Trillion dollars worth of finance transactions which include mortgages (around 2% of mortgages were LIBOR linked) personal loans, credit cards and business loans.
The scandal arose when banks in Britain decided to manipulate the interbank offered rate by making it artificially high when it suited them and lower when it suited them.
This dwarfs by orders of magnitude any financial scam in the history of the markets
Below is an infographic, produced by accounting degree , which explains the LIBOR crisis in layman’s terms.