Photo: Flicker user floodllama
Bloomberg’s Lindsay Fortado and Joshua Gallu report that traders at Deutsche Bank AG, HSBC Holdings Plc , Societe Generale and Credit Agricole are under investigation for manipulating the interest rate.Specfically, regulators are investigating Michael Zrihen at Credit Agricole, Didier Sander at HSBC and Christian Bittar at Deutsche Bank because of their links to former Barclays trader Philippe Moryoussef, says the report.
So far, 34 traders have been caught up in the probe and either fired and put on probation by their banks — banks that include Lloyds Banking Group Plc, Mitsubishi UFJ Financial Group Inc., Royal Bank of Scotland Group Plc, UBS AG, Citigroup Inc., Barclays and JPMorgan Chase & Co.
And if having regulators on their backs isn’t bad enough. Bloomberg also reports that some banks (like Goldman Sachs and Morgan Stanley) might bring lawsuits against firms that participated in LIBOR rate fixing.
“This will be a feeding frenzy of sharks,” said (Sanford Bernstein analyst Bradley) Hintz, who has served as treasurer of Morgan Stanley (MS) and chief financial officer of Lehman Brothers Holdings Inc. “We’re going to have Wall Street suing Wall Street.”
So that’s where we could be people: Brother against brother.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.