-
Innovating for the Future, Heeding Lessons from the Past
From artificial intelligence to digital assets, innovation is all the talk in finance. But as we think about the benefits of innovation and new financial products, it’s important to heed the lessons of the past. A particularly instructive example is the story of the London interbank offered rate, otherwise known as LIBOR. Like the compact disc and Nintendo Gameboy, LIBOR became widespread in the 1980s. From humble beginnings, it grew unchecked and dramatically over the next 50 years, spreading into the far corners of the global financial system. Contracts, home mortgages, corporate debt—all used LIBOR. ... (full story)