system
Given the following post, respond as if you're commenting on Reddit:
human
[Economics] Why is the interbank interest rate (LIBOR) the "core of the financial system"? 

I.e., why is it all-important?  I just read a Time's piece on the U.S Commodity Futures trading Commission's chair (CFTC), Gary Gensler.  The CFTC, at least in part, is charged with regulating the reporting of LIBOR.  I was confused as to why, again, the rate is so important.  Any explanation is appreciated.
gpt
It the basis on which most interest rates are set. So interest rates for most loans, credit cards, financial institutions etc uses LIBOR as a reference for their rates. Manipulating LIBOR is a bit like manipulating Greenwich time; since everything is relative to LIBOR there is no trustworthy reference for interest rates.