Banks Are Starting to Miss Libor

I have spent years making fun of Libor, the London Interbank Offered Rate, an interest-rate index that banks just sort of made up for years, and that got embroiled in scandal when it turned out that the banks were making up numbers to make more money for themselves rather than to reflect objective reality. But as I age and mellow, and as awkward issues come up with replacing Libor, I am increasingly sympathetic to Libor. It does a reasonably good job of doing the thing that it was supposed to do, and that thing is maybe a bit harder than its critics think.

So, here: