HOW LIBOR COULD BE RIGGED. The LIBOR conspiracies appear at first glance to be difficult to put together because they involved a large number of people at each bank who knew about what was happening—both the representatives preparing and submitting information and the traders who were benefiting. However, the LIBOR conspiracy may have been easier to put together than the typical price fixing conspiracy, which involves fixing a set of prices that are profitable for all selling companies participating for a relatively long period of time. Some of the LIBOR price fixing was done to benefit traders who had bet on a movement up or down of a particular LIBOR rate and were willing to conspire so they could win their bet. This made the price fixing less conspicuous because no rate was set for a long time. LIBOR rates were set on a daily basis, and the rates could go up or down—or stay the same—depending on the needs of individual traders. A given rate needn’t be profitable for all participants; approval of the rate for a day could simply be on the basis of “I’ll scratch your back this time and next time it will be be my turn.” And apparently some votes were obtained by cash bribes.

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