A quick finance primer-LIBOR is shorthand for the London Inter-bank Offered Rate, the interest rate that banks lend dollars (and other currencies) to each other on the international market. It's often used as a key benchmark for floating-rate loans, where loans might be stated as LIBOR plus a premium and go up and down as LIBOR does.
Big British bank Barclays got caught mistating LIBOR to its benefit; if it issued LIBOR-based loans, having the stated rate be a few hundredths of a percent (basis points in financese) higher than it should be can net them an extra $100 per million per basis point fudged.
LIBOR would seem to be more market based than the Fed Funds rate, which is managed by the Fed, but if it is being manipulated to a bank's benefit, that will mean that some other more neutral measure of interest rates will have to be looked into.
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