Here comes the good year blimp and so droppeth rice, there is a shortage of ink and paper.
bloomberg.com
Feeding Frenzy Seen If Wall Street Sues Itself Over Libor
Wall Street, grappling with mounting regulatory probes and investor claims over alleged interest-rate manipulation, may face yet another formidable foe: Itself.
July 18 (Bloomberg) -- Lloyd Blankfein, chief executive officer of Goldman Sachs Group Inc., talks at the Economic Club in Washington about the U.S. economy and financial regulation, the congressional probe of banks suspected of manipulating the London Interbank Offered Rate, and the outlook for the European Union. Blankfein speaks with Carlyle Group's David Rubenstein, president of the Economic Club. (Source: Bloomberg).
Goldman Sachs Group Inc. (GS) and Morgan Stanley are among financial firms that may bring lawsuits against their biggest rivals as regulators on three continents examine whether other banks manipulated the London interbank offered rate, known as Libor, said Bradley Hintz, an analyst with Sanford C. Bernstein & Co. Even if Goldman Sachs and Morgan Stanley forgo claims on their own behalf, they oversee money-market funds that may be required to pursue restitution for injured clients, he said.
Because Libor is based on submissions from only some of the world’s largest banks, the probes threaten to pit firms uninvolved in setting the rate against any implicated in its manipulation, Hintz said. Libor serves as a benchmark for at least $360 trillion in securities. |
