The libor scandal affected a lot of people in the country but the question is did it break any law that was set? It may or may not have affected any supreme law. Some argue that the banks came together to decide the cost of borrowing that they would send to be calculated as the libor. Others also argue that the banks knew the times that the libor was to be released and hence send their rates just in time to alter the libor. This, they believe goes against the competition law. At a point this may not be true because the libor is not a commodity and it is not a competitive market. It is not the lowest rate from the banks that is chosen but an average of all the rates collected from the banks. However, the competition law’s important objective is to protect the interest of the consumers. In this case, the interests of the customers and investors were not protected. The banks were thinking about themselves and how to make profits.
Just like the Enron case, it comes down to a matter of greed. The traders and executives who were the masterminds in this scandal were very greedy and thought of only themselves. In relation to economic and social development, the libor scandal lowered the level of development. The level of employment reduced since a lot of careers were destroyed. A lot of people were affected; taxpayers paid more than they were supposed to pay on interests, students who went for student loans were also affected because the interests they will pay/paid on the loans had not been the true values. Investors who lent their money to the banks by buying short term bonds were also affected. The banks paid them less interest than they should have been paid. Despite all these people who have been affected, there is little done about the situation. It comes back to the economic inequality; if you do not have money to get a good lawyer for yourself, your case will not be persecuted.
The libor which is like the ‘supreme