Masseurs challenge cosy assumptions – FT.com

Masseurs challenge cosy assumptions – FT.com.

The latest TBTF banking scandal is being overshadowed by the Affordable Care Act (Obamacare) ruling, Eurocrisis, Euro 2012 and the Kardashians among other things. In a nutshell, Barclays and Citi admitted to a lack of internal walls so that traders who needed a certain LIBOR (interest rate) were able to surreptitiously cross the wall and exert influence on those charged with reporting information to the trade group tasked with publishing the rate.

If two of these firms admitted to a role in this, then the rest have probably dabbled in rate fixing, too. This is a deceptively large scandal, and the regulators will be taking the rest of the TBTF out to the woodshed in the coming months.

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