American bank bosses are set to be questioned on what they knew about Libor rate-rigging and how much the scandal could cost their institutions.
Analysts and investors in Libor panel banks Citigroup and Bank of America get their first chance to quiz management since the £291m Barclays settlement when they report earnings this week. The results come after a new estimate that says banks could end up paying $14bn in regulatory fines and legal settlements.
JPMorgan Chase, Citigroup and BofA are the three US banks on the panel that submits estimates of their borrowing costs for inclusion in the daily Libor averages, which underpin trillions of dollars of derivatives contracts and affect interest rates for everyone from mortgage and credit card holders to small businesses.
Mr Schorr predicted it could be several years before the full cost of the scandal is known, because as well as regulatory investigations there are also multiple lawsuits in the US from investors alleging they lost money on derivatives because of the manipulation.
Read more: US bank bosses set for tough Libor questions - Business News - Business - The Independent
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