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.


Recommended Articles


Banks seek to settle on Libor, sources say

What’s going to kill your company?

What’s going to kill your company?

The role of the CFO and the board in strategic risk governancemore ..

Tesco’s new finance chief starts two months early amid accounting crisis

Marks and Spencer releases Alan Stewart early by to help deal with £250 million hole in Tesco’s accountsmore ..

Microsoft removes Bing image widget after Getty lawsuit

The company is being sued by Getty Images for copyright infringementmore ..

Apple loses bid for sales ban in Samsung patent case

Apple failed to show that it suffered enough harm as a result of Samsung's infringementmore ..

What makes a good board report?

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

Examining the issue of corporate litigation funding

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

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
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *