We’re looking at one of the most topical and controversial topics of 2012 – LIBOR. There’s a surprisingly strong antitrust connection. Restructuring proposals, as well as calculating potential criminal liabilities, will demand competition experience – requiring antitrust counsel and regulator expertise well into 2013 and more. In this issue, managed by Editorial Board Member Rosa Abrantes-Metz, we look at four different sides of the question: how LIBOR should be reformed, the reasons why antitrust is so applicable and the lessons from LIBOR, the implications for antitrust compliance, and, even more specifically, the eerie similarity to cartels. In short, these articles provide all the necessary background and set the stage for future LIBOR decisions.
The Surprising Correlation Between LIBOR and Antitrust
Our proposal relies on setting up incentives for the banks to freely submit quotes which are representative of their actual borrowing costs. Rosa M. Abrantes-Metz (NYU Stern School of Business & Global Economics Group) & David S. Evans (Global Economics Group & University of Chicago Law School)
The proposed reforms are too reliant on the existing structure of LIBOR, and come too late to save it. Michael S. Barr (Univ. of Michigan)