Banks’ Libor Costs May Hit $22 Billion

Twelve global banks that have been publicly linked to the Libor rate-rigging scandal face as much as $22bn in combined regulatory penalties and damages to investors and counterparties, according to Morgan Stanley estimates.

The analysis, which the authors admit is “crude”, assumes that 11 more banks will be penalised like Barclays [BARC.L  163.50  —  UNCH    ], which paid $456m last month to US and UK authorities for attempting to manipulate the London Interbank Offered Rate, the benchmark for $360tn in derivatives, loans and mortgages.

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