American and British banks are not the only ones under the microscope regarding the LIBOR scandal (Telegraph, UK):
The EU investigation into a “shocking” interest-rate rigging scandal in the world’s biggest money market in London also includes Japan, EU Competition Commissioner Joaquin Almunia has said.
“The alleged rate-rigging is a major competition concern,” Mr Almunia told a conference on competition in Lisbon.
“This is why we started investigating a number of banks last year for their possible concerted manipulation of [interest rate] benchmarks such as Libor, Euribor and Tibor, the Tokyo rate, for several currencies,” he said.
Meanwhile, the Daily Mail (also UK) tries to bring this down to Main Street level. Although I’m not sure they get the story right (it appears the rate low-balling sowed the seeds of the real-estate bubble and resulting panic), it is yet another reminder that LIBOR’s time has come and gone.
Cross-posted to Virginia Virtucon
[...] by an opinion poll of leading bankers. Said bankers, as just about anyone would expect, promptly used their power to manipulate the rate, causing a major scandal in London (where the rate is announced), and a rare instance in which [...]