Citigroup May Have Been The Worst American Offender In The Libor Rate Rigging Scandal

The British bank Barclays has been getting the lion’s share of the attention for its role in the LIBOR rate rigging scandal, especially after it paid a $450 million settlement. But as Fortune’s Stephen Gandel noted, Citibank may have been even worse. “In early 2010, two economics professors from UCLA and the University of Minnesota looked at Libor manipulation and found that, at least according to one measure, Citi had misstated its lending rate by more than any other large U.S. bank in the run up to the financial crisis,” Gandel wrote. Citi’s underreported its borrowing costs by a margin 50 percent larger than did Barclays.