Thanks to Bill for passing this along. It appears the Libor Manipulation story has a lot more to it than just the recent headlines.
On August 25, 2011, Charles Schwab Bank and Charles Schwab Corporation filed suit alleging 12 banks conspired to manipulate the U.S. Dollar London Interbank Offered Rate (“Libor”) over an extended period of time beginning in 2007. The firms named in the lawsuit were affiliates of Bank of America, Credit Suisse, JPMorgan Chase, Citigroup, HBOS, HSBC, Barclays, Lloyds, WestLB, UBS, Royal Bank of Scotland, and Deutsche Bank. The complaint contains anecdotal and statistical evidence that Libor was manipulated downward. This blog uses publically available information and reaches the conclusion that the allegations are highly likely to be correct.
