Most people have never heard of the Libor rate. But most people are impacted, at least indirectly, by it.

Reports that the rate was manipulated to benefit major banks is an emerging scandal with potential to trigger fines, indictments and lawsuits costing tens of billions of dollars.

Once an obscure figure in the financial world, Libor (London interbank offered rate) is getting lots of coverage in the mainstream media these days. And it’s not good press for big banks.

The Libor rate is the interest rate that major banks charge each other for short-term borrowing. It is set daily and is the basis for calculating interest rates in many other financial instruments.

The emerging Libor scandal will further erode public trust in the financial industry, already damaged by the mortgage-based crisis of 2007-09.

With the worst of the financial crisis fading from memory, the public had begun to forget the abuses of big banks — but the Libor scandal is a reminder of the big banks’ abuse of power and profiteering.

What began a few weeks ago as a British financial scandal focused on Barclays bank in London is expected to spread to the United States and major U.S.-based banks such as JPMorgan Chase and Bank of America.

Beyond the further erosion of public trust in large financial institutions, the Libor scandal also will likely generate lawsuits costing the big banks billions.

Several cities and states already are exploring lawsuits that would seek restitution for state agencies, cities, municipalities and school districts that paid more to borrow money or were harmed in interest-rate-swap deals by the alleged manipulation of the Libor rate.

Another possible outcome of the Libor scandal might be public pressure for tougher financial controls over big banks. But because Wall Street exerts so much influence over politicians and policymakers in Washington, tougher regulation of the financial industry will be fought with campaign contributions and armies of lobbyists, just as was done with the Dodd-Frank financial-reform law.

The Libor scandal started with Barclays, but investigations are targeting other giant banks, including JPMorgan Chase, Citigroup, Bank of America, Royal Bank of Scotland, Deutsche Bank and UBS — many of the same banks involved in the recent financial crisis and deemed too big to fail.

Overall, the Libor rate is used to set the interest rate for business loans, municipal bonds, interest rate swaps, home mortgages, student loans and more. An estimated $10 trillion in loans around the world are based on the Libor rate.

In some cases, lower Libor rates hurt some organizations or people while helping others. And in cases where the Libor rate was manipulated to be higher than it actually was, some people were hurt while others benefited. Sorting it all out will be complicated, but the motivation to do so is clear. By some estimates, 75 percent of all major cities have investments tied to Libor.

Few people knew what the Libor rate was until this scandal erupted. But in the coming weeks and months, the public is sure to learn more about Libor and the abuses of major international banks.

It’s further evidence of what looks like a rigged game benefiting the world’s biggest banks and their top executives — at the expense of everyone else.