Libor is broken, but can it be fixed?

Sometimes finance has a great need for something, and so bankers invent products that appear to fill that need. When the invention turns out to be something else entirely, people are shocked.

So it was a few years ago with senior tranches of asset-backed securities. Investors perceived a need for risk-free assets with floating rates, and Wall Street banks served up trillions of dollars worth of such paper - or at least they said they did.

via Business feed http://www.scmp.com/business/banking-finance/article/1049803/libor-broken-can-it-be-fixed