Conspiracy theory: Lawyers gear up for high-stakes Libor case
Libor manipulation fines and civil lawsuits could cost banks anywhere from $1 billion to tens – or even hundreds – of billions, according to early estimates. But plaintiffs have a high legal bar to clear. Peter Madigan reports
Lawyers seeking to prove banks conspired to manipulate Libor received a huge fillip on June 27, when regulators in the US and the UK announced their roughly $450 million settlement with Barclays – emails between the bank’s staff showed it had lied about its borrowing costs, which are the input to the Libor process. Two of the three regulators also say evidence was found of co-operation between Barclays and other banks, but did not name the banks involved. More regulatory settlements are expected
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