Sunday, July 29, 2012

At least three banks show signs of Libor rigging

(Reuters) - New details from court documents and sources close to the Libor scandal investigation suggest that groups of traders working at three major European banks were heavily involved in rigging global benchmark interest rates.

Some of those traders, including one who used to work at Barclays Plc in New York, still have senior positions on Wall Street trading desks.

Until now, most of the attention has involved traders at Barclays, which last month reached a $453 million settlement with U.S. and UK authorities for its role in the manipulation of rates. Now, it is becoming clear that traders from at least two other banks - UK-based Royal Bank of Scotland Group Plc and Switzerland's UBS AG - played a central role. Read More

We should have bailed out everyone
Although it was essential for the banks to be bailed out, "millions have suffered needlessly" because consumers and homeowners didn't get help as well, argues Kevin Drum.