TIMELINE-How the Libor scandal unfolded
Feb 6 (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. The British Bankers' Association (BBA) published the first official Libor rates in dollars, sterling and yen, meeting demand for global benchmarks from financial markets in 1986.
This is how the scandal unfolded.
2007 - Barclays alerts U.S. regulators to 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.
2010 - Britain's Financial Services Authority (FSA) launches an investigation into Barclays as part of a global probe of alleged 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 $450 million in a settlement with U.S. and British regulators over rate rigging. Britain announces a review of the way Libor is calculated. Barclays chief executive Bob Diamond and chairman Marcus Agius quit in the next month over the scandal.
Aug. 2012 - A joint New York-Connecticut investigation of Libor sends subpoenas to Royal Bank of Scotland, HSBC Holdings, JPMorgan, Deutsche Bank, Barclays, UBS and Citigroup. The subpoenas seek communication between executives related to possible collusion that may have played a role in alleged rate manipulation. Continued...