All Topics Group

The WSJ's May 2008 study that set off the LIBOR investigation

05/29/2008

The analysis by the WSJ using credit default insurance showed banks were lowballing the rate they reported daily to the British Bankers Association as part of a 16 bank panel. The apparent intention was to protect perception of the bank's health during the financial crisis. Investigations later showed the other motive was to increase trading profits at banks such as UBS. WSJ analysis showed banks rates clustering together showing possible collusion in setting the rates. Banks which lowballed the most in the WSJ analysis were Citigroup, HBOS, UBS, WestLB, JP Morgan Chase. West LB, Citigroup and HBOS, were considered banks with higher risks during the financial crisis. The LIBOR or London Interbank Offered Rate helps determine the rate for trillions of dollars of transactions in financial markets ranging from home securities, home and auto loans to derivatives and swaps and is critical for the integrity of financial markets worldwide.

Grouped Articles

Key Credit Gauge Loses Clout

Wall Street Journal 07.15.2011

Carrick Mollenkamp, Carrick, Mollenkamp

U.K. to Criminalize Manipulation of Financial Benchmarks

Wall Street Journal 12.23.2014

Katie Martin, Katie, Martin

Former Trader Tom Hayes Sentenced to 14 Years for Libor Rigging

Wall Street Journal 08.04.2015

David Enrich, David, Enrich

U.K. Serious Fraud Office Plans More Libor Charges in the Fall

Wall Street Journal 08.05.2015

Giles Turner And David Enrich, Giles, Turner, And, David, Enrich

Study Casts Doubt on Key Rate

Wall Street Journal 05.29.2008

Carrick Mollenkamp, Carrick, Mollenkamp, Mark Whitehouse, Mark, Whitehouse