How Much Did Libor-Rigging Cost? U.S. FDIC Finally Has an Answer
- FDIC discloses $7 million per basis point figure at hearing
- Regulator is suing seven European banks in London court
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Just as the much-maligned Libor benchmark is on its way out, a U.S. regulator is finally trying to work out the potential losses from the manipulation scandals a decade ago.
The U.S. Federal Deposit Insurance Corporation, which is suing Barclays Plc and six other European lenders in London, says that a group of failed U.S. institutions suffered a collective loss of around $7 million for every rigged basis point. It’s the first time the regulator has put a number on the size of the claim, which has the potential to run into hundreds of millions of dollars.