Libor Latest: Investigation Widens
The UK’s Serious Fraud Office (or, SFO) is investigating an additional 22 people in connection with the Libor scandal according to Bloomberg. The lawyer for one of the twenty-two says their client may be facing charges in the U.S. as well. Libor, or London Interbank Offered Rated, is a financial benchmark.
It is the rate at which lenders can borrow money, and sixteen international banks are used in compiling the rate, which is done each morning by Thompson-Reuters Corporation (NYSE: TRI). A BBC timeline of the scandal places the first inklings of evidence in 2005, when Barclays PLC (NYSE: BCS) tried to manipulate rates. Locations of implicated offices include Tokyo, London, and New York City.
In 2012, seven banks officially received notice of investigation by U.S. authorities. The scandal has engulfed a slew of senior officials, and brought millions of dollars of fines to banks. Previously, the BBC covered the resignation of Barclays’s CEO Bob Diamond , as well as Barclays being fined 290 million pounds (over $460 million) by regulators in the U.S. and the UK.