The Bankwatch

I wrote in July 2012 that “Libor is the Catalyst of the next banking crisis” and while that unfortunate prediction is coming true the fines suggest it will be basically shoved under the rug. 

Rate-fixing scandal shakes three continents | ft.com

The fallout from the interest rate manipulation scandal hit three continents on Wednesday as Royal Bank of Scotland paid £390m ($612m) and admitted criminal price-fixing charges over Libor-rigging. A series of lurid emails cited in the settlement laid bare a culture where employees would readily alter rates in exchange for steak dinners.

So far LIBOR fines have been relatively small (amounts are approximate as we add up sterling and dollar fines):

• RBS                     $   612 million
• Lloyds                $   450 million
• UBS                    $ 1,800 bn

but are expected to become quite large once financial authorities complete their investigations

• More to come       $22,000 bn (Morgan Stanley estimate)