Economy

Rate-Rigging Scandal Could Cost Banks $176 Billion

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The LIBOR rate-rigging scandal that came to light this year could cost banks up to $176 billion, as investors pile on to sue the various big banks accused of manipulating the key interest rate. The firm Macquarie Research estimated that total “based on the assumption that Libor was ‘understated’ by 0.4 percentage points in 2008 and 2009.” Other estimates place the banks’ potential liability much lower, but still in the billions of dollars.