A world without LIBOR : a new financial order?

On June 27, 2012, news of Barclays being fined for manipulating the daily setting of the London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (EURIBOR) flooded the media. Nearly eight years later, the transition away from LIBOR is still a work in progress. Since the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) addressed the LIBOR phaseout, the topic has drawn considerable attention. In our recent paper, we revisit a number of landmark legislations that contributed to the LIBOR provisions, discuss some critical aspects related to financial system design, and propose a conceptual model of banking regulation. In this blog post, we focus on the responses of accounting and financial regulators to the LIBOR transition