Reuters reports that a group of banks being investigated in
an interest-rate rigging scandal are looking to pursue a group settlement with
regulators rather than face a Barclays-style backlash by going it alone, people
familiar with the banks' thinking said.
Such 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.
Barclays Plc was the first to settle with U.S. and British
regulators, paying a $453 million penalty and admitting to its role in a deal
announced June 27. Its chief executive, Bob Diamond, abruptly quit the next
week, bowing to public pressure and erosion of the bank's reputation. The
sources told Reuters that none of the banks involved now want to be second in
line for fear that they will get similarly hostile treatment from politicians
and the public.
It is unclear which banks are involved in the potential
settlement talks. More than a dozen banks are being investigated in the
scandal, including Citigroup, HSBC, Deutsche Bank and JPMorgan Chase. They all
declined to comment.
Find out more at http://uk.reuters.com/article/2012/07/20/uk-banking-libor-settlment-idUKBRE86J00M20120720
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