If allegations that banks manipulated Libor prove to be true, those actions likely cost municipal bond issuers with swaps linked to the rate tens of millions of dollars, according to experts.

The story harks back to the auction-rate securities crisis that erupted in 2008. Then, ill-fated ARS were hedged with swaps pegged to a percentage of the London Interbank Offered Rate, which is supposed to be a measure of how much banks charge each other for short-term loans.

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