Barclays First To Trial Over Libor, Insurance Stocks On Watch Wednesday: Financial Biz Wrap

Barclays (NYSE:BCS) now has the distinction of being the first bank ordered to trial in the United Kingdom over the manipulation of Libor rates. The firm is being sued for as much as £37 million by the residential care home operator Guardian Care Homes, over claims of the mis-selling of swaps. This case could lead to new revelations and should constitute a test case for thousands of small firms that also believe they were mis-sold such instruments.

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Because of the aftermath of Sandy, the insurance sector is certain to be closely monitored as stock trading resumes Wednesday. William Blair has noted that 2011′s fourth quarter losses from Irene for Allstate Corporation (NYSE:ALL), Chubb Corporation (NYSE:CB), and Tower Group (NASDAQ:TWGP) comprised more than one half of the anticipated earnings per share estimates. On the upside, MKM Partners believes that although the group will sustain losses, it should not be a major capital event for the average firm, even in the event of $10 billion of insured losses.

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