TIMELINE-How the Libor scandal unfolded

Wed Dec 19, 2012 4:53am EST
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Dec 19 (Reuters) - Libor, the London interbank offered rate, is a global benchmark for interest rates on everything from credit cards to trillions of dollars in financial derivatives and is at the heart of a scandal over rate rigging.

Libor rates are based on daily estimates from a group of banks as to how much they would expect to pay to borrow funds from each other for a range of currencies and periods.

This is how the scandal unfolded.

1986 - The British Bankers' Association (BBA) publishes the first official Libor rates in dollars, sterling and yen, meeting demand for global benchmarks from financial markets.

2007 - Barclays alerts U.S. regulators about its concerns that other banks are submitting dishonestly low interbank rates.

Sept. 2008 - Libor rates spike after the collapse of Lehman Brothers at the height of the global financial crisis. Rate setting at the time is central to investigations of rigging.

2010 - Britain's Financial Services Authority (FSA) launches an investigation into Barclays as part of a global probe into the industry over allegations of interest rate manipulation.

Aug. 2011 - Discount brokerage and money manager Charles Schwab Corp files lawsuits accusing 11 major banks of conspiring to manipulate Libor.

June 2012 - Barclays is fined $455 million in a settlement with U.S. and British regulators over rigging rates. Britain announces a review of the way Libor is calculated.   Continued...