Investigators worldwide are looking into possible manipulation of the London Interbank Offered Rate, but the arcane system likely will survive because of its ubiquity in the financial system. Libor is used as a benchmark for derivatives, loans, bonds, interest-rate swaps and other products. "As soon as you've got a load of deals that are tied to one benchmark, then it's extremely difficult for banks to change to another benchmark," said Nicholas Motson, financial lecturer at London's Cass Business School. "If someone's issued a 10-year bond that's tied to Libor, then you can't switch partway through."

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