Tag: Dutch auction

Perhaps the only thing more surprising than the LIBOR rate-fixing scandal that engulfed Barclays last week is the method by which the rate is set.  For more than four decades, the benchmark interest rate has been set by a group of banks, based on voluntary declarations of each bank’s borrowing cost, not actual trades. But the LIBOR determination isn’t the only arcane banking convention that has come under question in recent weeks.  The flubbed Facebook IPO has cast doubt on the book-building process by which equity offerings have been managed for decades. Thanks to these two high profile incidents, every opaque process in the financial market is likely to face scrutiny – and growing pre... Read More