Financial Business Recap: Libor IMPACTS Schwab & Others, Deutsche WIDENS Clawbacks
The lawsuits brought against banks because of their alleged manipulation of the Libor and other rates are mounting up, causing The Charles Schwab Corporation (NYSE:SCHW), insurers, cities, lenders and individual investors to assess or to initiate their legal options. BlackRock, Inc. (NYSE:BLK), Federated Investors Inc. (NYSE:FII) and Calpers are among many firms now looking to see if they lost money. Current estimates for the banks’ liabilities range between $7.8 billion and $176 billion.
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Deutsche Bank AG (NYSE:DB) has become the first such firm to extend clawbacks, bringing into play rules that allow it to strip employees of stock they earned through previous employers. At the moment, these almost punitive measures should cause Deutsche to have trouble filling vacancies, but other lenders will very likely copy the policy before long.
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