Interest Rate Rigging Scandal May Cost Banks $22 Billion

According to an analysis by Morgan Stanley, the LIBOR interest rate rigging scandal may end up costing banks about $22 billion in penalties and other costs. The analysis assumes that 11 other banks will be penalized as heavily as Barclays, which had to pay $456 million in fines last month. The calculation doesn’t include “the potential fallout from ongoing US and European Union cartel investigations, which could result in multibillion-dollar fines.”