US Students Detected Libor-Fixing Years Before Banking Scandal
RIA NOVOSTI-
In April 2010, University of Minnesota graduate students Connan Snider and Thomas Youle released a paper suggesting that leading global banks were manipulating the Libor—the world’s most important lending rate—to benefit their own trading positions.
The two economists shopped the paper to academic finance journals but were repeatedly rebuffed, according to Snider, now an assistant professor of economics at UCLA.
“We were told that what we were doing was not interesting or important,” Snider said in a recent interview.
Two years later, however, their research is more relevant than ever.