TIMELINE-How the Libor scandal unfolded

Dec 19 (Reuters) - Libor, the London interbank offered rate,is a global benchmark for interest rates on everything fromcredit cards to trillions of dollars in financial derivativesand is at the heart of a scandal over rate rigging. Libor rates are based on daily estimates from a group ofbanks as to how much they would expect to pay to borrow fundsfrom each other for a range of currencies and periods. This is how the scandal unfolded. 1986 - The British Bankers' Association (BBA) publishes thefirst official Libor rates in dollars, sterling and yen, meetingdemand for global benchmarks from financial markets. 2007 - Barclays alerts U.S. regulators about itsconcerns that other banks are submitting dishonestly lowinterbank rates. Sept. 2008 - Libor rates spike after the collapse of LehmanBrothers at the height of the global financial crisis. Ratesetting at the time is central to investigations of rigging. 2010 - Britain's Financial Services Authority (FSA) launchesan investigation into Barclays as part of a global probe intothe industry over allegations of interest rate manipulation. Aug. 2011 - Discount brokerage and money manager CharlesSchwab Corp files lawsuits accusing 11 major banks ofconspiring to manipulate Libor. June 2012 - Barclays is fined $455 million in a settlementwith U.S. and British regulators over rigging rates. Britainannounces a review of the way Libor is calculated. July 2012 - Barclays chief executive Bob Diamond andchairman Marcus Agius quit over the scandal. Agius keeps acaretaker role. Class action is brought by investors againstBarclays and other banks. Aug. 2012 - A joint New York-Connecticut investigation ofLibor send subpoenas to Royal Bank of Scotland, HSBCHoldings, JPMorgan, Deutsche Bank,Barclays, UBS and Citigroup. The subpoenas seekcommunication between executives related to possible collusionthat may have played a role in alleged rate manipulation. Sept. 2012 - The BBA says it will support any recommendationby Martin Wheatley, the FSA's managing director, for a change ofresponsibility in setting the rate. The FSA delivers a 10-pointplan to overhaul Libor on Sept. 28, but stops short of scrappingthe benchmark interest rate. Nov. 2012 - Deutsche Bank faces sceptical German lawmakerswho are seeking answers about how banks manipulated globalbenchmark interest rates. On the same day, Barclays says itfired five employees following its investigations into Liborrigging. Dec. 2012 - The first three arrests are made in the scandal.Days later, UBS is fined $1.5 billion to settle charges ofrigging the Libor rate. Sources: Reuters/BBA Thomson Reuters, parent company of Reuters, hasbeen calculating and distributing the rates for the BBA since2005, when it acquired previous calculating agent Telerate.