Libor must be scrapped

To prevent cheating, Libor should be replaced with a market-based rate, says Grossman

In an interview with Law360, Professor of Economics Richard Grossman said recently proposed reforms to the London Interbank Offered Rate (Libor) following a rigging scandal are insufficient to prevent future tampering with the rate. Instead, he says, Libor should be scrapped and replaced with a new, market-based rate to prevent cheating.