A number of major banks, mostly in London, were caught last summer in a whirlwind scandal for manipulating an obscure interest rate, the Libor.
There were customary embarrassing instant messages and e-mails released in the complaint, and banks paid out billion dollar fines, but it was still hard to get people to pay attention to such an obscure number. The scandal just wasn’t quite salacious enough.
But now it seems that element has arrived. Regulators suspect that London’s high-flying banking culture led to an attitude that welcomed deceitful, conspiratorial behavior between traders and brokers, the WSJ reports.