Libor benchmark: practice, crime and reforms

Purpose The purpose of this paper is to trace how and why the market-designed Libor benchmark turned bad, thereby necessitating a regulatory response. Design/methodology/approach The study relies on primary and secondary data in the public domain and complemented by a single-case study. Findings The study demonstrates how and why Libor benchmark rigging led to reforms in the UK and elsewhere. Research limitations/implications The study relying mainly on the secondary data analysis needs to be enhanced by further empirical-based studies. Practical implications Insights generated by the study suggest why it might not be worthwhile for market participants to game the system. Social implications Libor benchmark affects the financial system widely with varying significance to the wider public. With better regulatory oversight, its negative impact is expected to be mitigated considerably. Originality/value The seriousness with which the enforcement agency and judiciary now treat financial crime weakens the earlier public perception that white-collar crime is enforced differently.