My understanding is that the purpose of LIBOR is to be free of US regulations on interest-rate setting and be closer to a 'free market' rate on the USD. The iro

My understanding is that the purpose of LIBOR is to be free of US regulations on interest-rate setting and be closer to a 'free market' rate on the USD. The irony of the situation is left as an exercise to the reader. London is also a bit more reluctant to clamp down on finance--they are the only region doing well in a struggling England, and unlike, say, the NYC finance industry, much of the money in London is free to go somewhere else.