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Libor’s Risks Emerged From Clubby London Banking Culture

Aug. 14 (Bloomberg) -- With central bankers and market participants rushing to find an alternative to the London Interbank Offered Rate (or Libor), the interest-rate index that sets borrowing costs for consumers and multinational corporations, it’s a good time to ask where Libor came from. And to ask how the midmorning estimates of a handful of London-based bankers came to play such an outsized role in the modern, quant-driven financial system.

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