In the wake of Barclays Bank admitting to manipulating Libor (the London Interbank Offered Rate, used by banks to set the interest rate they charge when borrowing from one another), other financial institutions are now on notice over their involvement. Some banks artificially inflated or deflated their rates, depending on what would benefit them most.
Jeff Grange, Senior Vice President & Head of Professional Lines for specialty underwriter Torus, spoke with NU about how the scandal will affect the professional-services insurance market for financial institutions.
Examining the Libor scandal, what exposures are insurers most concerned about?
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