Deutsche Bank in Crossfires of Libor Scandal

Barclays PLC (NYSE:BCS) (LON:BCS) UBS AG (NYSE:UBS) and Royal Bank of Scotland Group plc (LON:RBS) (NYSE:RBS) – and Deutsche Bank AG (NYSE:DB) in particular are under pressure for the Libor Scandal.

The new executives of Deutsche Bank are certain to attract attention when they for the first time present their reports next Tuesday. The most exiting will be: How much will Anshu Jain and Jürgen Fitschen reserve for legal costs, fines and damages in one of the greater scandals?

Die FAZ makes a neat observation:

The problem is: When the LIBOR and EURIBOR was invented the financial world was in working order. Banks did in fact lend each other money without collateral, so you could read off the interest rate on these transactions. That is hardly the case today. That is: There are hardly any real deals from which you can base the quoted interest rates. That is easily ”arranged”: You simply report the numbers that suits you.

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