Daily News: July 19, 2012

LIBOR Reported as Rigged in ’08 Proving 2012’s Revelation

Bloomberg reported that Barclays’ admission that it rigged the London interbank offered rate (LIBOR) shows regulators, central bankers and politicians weren’t paying attention when everyone from Citigroup to the Bank for International Settlements (BIS) indicated that the measure was being manipulated.

Bloomberg said the BIS signaled in March 2008 that the benchmark was being misstated. A month later, analysts at Citigroup suggested the same. In May of that year, one of Barclays’ own strategists said the numbers reported by banks “were a lie.”

At least a dozen banks are being probed by regulators worldwide for potentially rigging the benchmark rate, including Citigroup, Royal Bank of Scotland Group, UBS, Lloyds Banking Group and Deutsche Bank, Bloomberg said.

To read the full Bloomberg story, click here.