# Prof. Marti Subrahmanyam on the LIBOR scandal

1 Faculty News July 13, 2012 ![Forbes logo](/sites/default/files/styles/246w/public/assets/images/con_030508.jpg?itok=SId6k3bx)>

Excerpt from [Forbes](http://www.forbes.com/sites/halahtouryalai/2012/07/13/phone-call-transcripts-show-ny-fed-knew-about-libor-lies-in-april-2008/) -- "'It’s one thing to lie about your borrowing rate to make you look better. That’s like saying you’re 5 feet 9 inches when you’re really 5 feet 7 inches,' he says. But the worst case scenario is that the evidence shows banks were in fact colluding to push the Libor rates up or down for their own profit. 'If banks were colluding to push the rates in one direction or another then that’s a much more serious problem,' [Subrahmanyam](http://www.stern.nyu.edu/faculty/bio/marti-subrahmanyam) says."

[Read more](http://www.forbes.com/sites/halahtouryalai/2012/07/13/phone-call-transcripts-show-ny-fed-knew-about-libor-lies-in-april-2008/)