LIBOR

Okay kiddo, let's talk about something called “Libor.” Imagine that you have money and you are continuously lending it to your friends. Now, suppose you and your friends agree on a specific interest rate that they will pay you. That interest rate is called the "Libor."

Now, there are a lot of people who lend money like this to banks around the world. They agree on the interest rate that those banks will pay them, known as the "Libor" rate. This rate is used as a benchmark for many other financial products like car loans or home mortgages.

The banks that borrow the money use the Libor as a reference or guide to set their interest rates, so it's important that the Libor is accurate. The problem is that some people were cheating with the Libor, by conspiring to manipulate the interest rates. This was a big problem since it could lead to unfair profits for them and also lots of people could suffer due to their dishonesty.

So, in the end, since everyone needs to trust the Libor to manage their money fairly, there's now a lot of work going into making sure it is reliable and can be trusted.