I have a simple rule for how financial scandals unfold:
If one firm is breaking the law in a particular business area, then they all are.
You can rest assured that Barclays is not the only bank manipulating Libor. Each of the TBTF institutions have done this. A few months back I read an article about how municipalities entered into interest rate swaps based on Libor spreads to lower financing costs. They all got crushed as the Libor rate decreased opposite of everyone’s expectations, and no one saw it coming. They spent millions of dollars to unwind these instruments when Libor sunk. The deteriorating swaps of Jefferson County hastened its bankruptcy. There are billions of dollars in liability for these instruments, and this is just one business line.