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Big Banks At Center Of Interest Rate Probe

Monday, March 12, 2012 - 12:04 PM
It affects everything from mortgages to credit cards to student loans, and now some of the world's biggest banks are at the center of a criminal investigation into whether they manipulated it for their own benefit.

Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,611
1. Monday, March 12, 2012 - 12:38 PM
The CNN Money article states that some banks are defendants in a suit alleging LIBOR manipulation as far back as 2006.

Schwab sued 11 banks last August, accusing them of manipulating LIBOR:

and the Justice Department announced its own investigation of the actions of individual traders in connection with manipulation of LIBOR:

If the allegations can be proved, it will be interesting to see what punitive action will be taken (if any), and what safeguards (if any) will be put in place to prevent future instances.

pearlbrownpearlbrown1,467 posts since
Nov 2, 2010
Rep Points: 6,376
2. Monday, March 12, 2012 - 3:26 PM
If the liability for the banks will be staggering, doesn't this equate to even lower savings rates for us??  I see my main bank was listed but that is no news to me.  These banks deserve to have punitive action taken against them, imo but I just think it will end up as even more bad news for savers.  We just can't get a break!
ApacheApache43 posts since
Dec 5, 2011
Rep Points: 565