Editorial Board
Give Libor Some Competition
The interest-rate benchmark has improved, but the market still needs an alternative.
Still flawed.
Screenshot: Mark Whitehouse/BloombergIn 2012, the London interbank offered rate -- Libor -- gained worldwide notoriety when it emerged that traders had conspired to manipulate this vital financial benchmark. Clearly, the system was broken and would have to be mended. Four years later, the repairs aren't finished.
Given the stakes, regulators are right to tread carefully. That said, they need to start making progress -- not so much toward mending Libor as toward creating an alternative.