The Libor rate-fixing is such egregious corruption that there will unquestionably be gazillions of lawsuits against corrupt big banks.
Thus it probably won’t be the regulatory agencies in the US and UK that bring down the banks but rather lawsuits by the thousands from well-heeled investors, companies, and municipalities who are furious at being swindled.
It has been proven time and time again our supposed regulatory agencies are part of the problem and for the most part are captured and compliant entities who have completely failed the public they are supposed to protect.
I expect the firms involved to face a locust swarm of litigation. Lawyers may accomplish what regulators and politicians refused to do: strip the banks of ill gotten gains and bring their preening CEOs and “producers” down a few notches. A day of reckoning may finally be coming
Over $564 trillion was traded in Libor derivatives in 2011. If you knew what Libor would be in the morning, golly, that would be a license to print money, wouldn’t it?
And it now appears the Libor rigging has probably been going on for decades with a wink and a nod from governments.
Our financial system is rotten at the core.