Goldman’s Blankfein: Libor scandal undermines financial system

July 18 (Reuters) – The unfolding scandal involving global banks’ attempts to manipulate benchmark interest rates undermines the financial system by chipping away at public trust, Goldman Sachs Chief Executive Lloyd Blankfein said on Wednesday.

Blankfein said financial scandals like the one surrounding the London Interbank Offered Rate, or Libor, create uncertainty that only builds on the American public’s mistrust of the industry after the 2007-2009 financial crisis.

“The biggest impact is once more undermining the integrity of a system that is already undermined substantially,” Blankfein said, speaking before the Economic Club of Washington. “There was this huge hole to dig out of in terms of getting the trust back, and now it’s just that much deeper.”

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