I only just read the bit where LIBOR rates were self-reported. I consider my mind blown that a government was convinced that a rate that could be written into contracts was based not on the report of that rate (approximately) in the most recent past, but on an estimation of the future. That's just mind-bogglingly certain to result in the kind of scandal we see now.
This is a perfect and frightful example of regulatory capture gone painfully (for the taxpayers, and the debtors) according to expectations. I just am aghast. Maybe something will change soon?
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