Everyone should be paying attention to the Libor scandal, at least according to Warren Buffett.
"It's a big deal," Buffett told CNBC "Squawk Box" host Becky Quick Thursday. "You get Libor, and you're talking about the whole world."
Big banks have come under fire following allegations that many profited off the manipulation of Libor, a key interbank lending rate that acts as a benchmark for interest rates around the world. The first bank to admit wrongdoing, Barclays, agreed to pay more than $450 million last month to settle claims it manipulated the rate. The 16 banks under investigation by governments in Europe, the U.S., and Japan for allegedly rigging Libor include Bank of America, JPMorgan Chase, and Citigroup.
Rolling Stone's Matt Taibbi recently said it was likely that most or all of these bankswere guilty of rigging Libor, since 16 banks help set the Libor rate every day. On CNBC, Buffett called Libor "the base rate for the whole world."
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