Banks Exhibited Herd Mentality Regarding LIBOR-Fixing

Cora Currier in Pro-Publica breaks down the Barclay’s phase of the LIBOR scandal, and talks about who is next:

So who else is being investigated?

Revelations about other banks have been trickling out over the past year:

· UBS previously made agreements to cooperate with severalinternationalinvestigationsin exchange for leniency on potential criminal charges.

· Citigroup was also a target of investigation. Earlier this year, it emerged that a few traders at Citigroup and UBS tried to manipulate Libor rates for the Yen.

· The Times of London reported that Royal Bank of Scotland could soon be hit with a fine of up to $150 million for related charges.

· Bank of America also reportedly received a subpoena last year from regulators as part of the investigation. JPMorgan Chase, Credit Suisse, HSBC and others were also on the Libor-setting panel during the period being investigated.

· Last fall, European regulators seized documents from Deutsche Bank and others regarding manipulation of the Euribor.

Private lawsuits over Libor are already underway. Last summer, Charles Schwab filed a suit alleging anti-trust violations against many Libor-setting banks and at least one class action has been filed alleging that Libor manipulation meant banks paid “unduly low interest rates to investors.”

Gretchen Morgenson at the NY Times on the LIBOR Scandal

Several recent posts by Matt Taibbi on the LIBOR Scandal

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