LIBOR far from reliable methodology did allow manipulation (FT/Alphaville)

"The statements of CFTC and Department of Justice in the US, and FSA in the UK, are out concerning Barclays' $200m, $160m, and £59.5m fines respectively for "attempted manipulation of and false reporting of LIBOR and Euribor Benchmark rates". The FSA fine is the largest the agency has ever imposed."

"The Order finds that Barclays attempted to manipulate interest rates and made related false reports to benefit its derivatives trading positions.

The Order also finds that Barclays made false LIBOR reports at the direction of members of senior management to protect its reputation during the global financial crisis."