The Securities Litigation Expert Blog

LIBOR Scandal Becomes New Profit Center for White Collar Law Firms

Posted by Jack Duval

Sep 25, 2012 3:23:56 AM

Azam Ahmed of The New York Times has an great piece out in the DealBook Section about how white collar law firms are thriving, especially off of the Libor scandal.  You can find the article here.  The (literal) money quote:

The global investigation into the manipulation of a crucial benchmark interest rate known as the London interbank offered rate has emerged as the most profitable for the legal profession.

While many of the recent scandals have been relatively isolated, the scope of the rate-rigging scandal has been vast, encompassing 16 banks. More than 10 government authorities around the world are looking into whether the banks reported false rates, potentially affecting trillions of dollars of financial products like mortgages and student loans.


The investigation is still in its early days, but experts say it is likely to drag on for years. Authorities could arrest traders this year, and more cases against big banks are expected. Earlier this year, Barclays agreed to pay $450 million to settle accusations that it had reported false rates.

And for humor:
“This is looking like a full employment act for the corporate bar,” said Samuel W. Buell, a professor at Duke Law School. “It’s very hard to see how you draw a tight circle around this issue.”
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Topics: LIBOR, litigation, The New York Times, Azam Ahmed

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