The London Interbank Offered Rate, one of the world’s most important indices that is closely tied to roughly 360 trillion assets, is found to be manipulated by greedy individuals. However, the trouble doesn’t stop there. Britsh bank giants are facing numerous lawsuits that can drag them down to the abyss. Today, a report by James O’Toole from the CNN will give you a better picture of the scene.
The Libor interest-rate-fixing scandal has already cost Barclays more than $450 million. For the British banking giant and others, however, that could be just the beginning.
Two dozen lawsuits have been filed against banks involved in setting Libor by plaintiffs who claim they lost money as a result of the rate’s manipulation. And that’s just in the United States — given Libor’s global reach, investors around the world may have cases.
Libor — or the London Interbank Offered Rate — is the world’s most important benchmark for interest rates. Roughly $10 trillion in loans — including credit card rates, car loans, student loans and adjustable-rate mortgages — as well as some $350 trillion in derivatives are tied to Libor.