We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

Banks seek to settle on Libor, sources say

No lone bank now wishes to go it alone after the backlash Barclays has faced

Article comments

Regulators may consider a collective settlement with a group of banks under investigation for the key interest rate rigging scandal so that no single bank will have to face a major backlash alone like Barclays, Reuters reported.

The group of banks - so far no names have been confirmed - are said to be looking to pursue a group settlement so they can avoid the hostile treatment unleashed on Barclays by politicians and the public.

The discussions are preliminary, and it is unclear if regulators will enter these talks, aimed at resolving allegations that banks attempted to manipulate the London interbank offered rate, or Libor, a benchmark that underpins hundreds of trillions of dollars in contracts, Reuters reported.

Barclays was the first bank to settle with US and UK regulators, paying a £290 million fine for its role in Libor manipulation. The Barclays lost three senior executive, including chief executive Bob Diamond, in quick succession the following week, bowing to public pressure and erosion of the bank's reputation.

Sources told Reuters that none of the banks involved now want to be second in line for fear that they will face similarly harsh treatment.

More than a dozen banks are being investigated in the scandal, including Citigroup, HSBC, Deutsche Bank and JPMorgan Chase. They all declined to comment.

A group agreement would appeal to regulators because they would be able to announce a headline-grabbing figure, showing that they were dealing firmly with the banking industry's misdemeanours, a banker told Reuters on condition of anonymity.



Banks seek to settle on Libor, sources say

What makes a good board report?

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

FRC consults on governance code

The watchdog is looking at clawback clauses among other governance issuesmore ..

Review to blame weak governance at Co-op bank

The Kelly Review will pinpoint the Britannia building society takeover as the main problem at the bank, the BBC claimsmore ..

Vince Cable plans to unmask hidden company owners

A public register of company owners will be created whichpolice and tax authorities can usemore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Corporate governance: A catalyst for innovation

Corporate governance is a powerful tool in a C-suite executive’s arsenalmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Do you have what it takes to become a non-executive?

Do you have what it takes to become a non-executive?

The benefits of board service for CFOs more ..

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..


* *