TIMELINE-How the Libor scandal unfolded
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...