The European Commission (EC) handed down its largest fines ever, totaling $2.3 billion, for interest rate rigging. The following five global banks will be sharing that record fine: Citigroup, Deutsche Bank, Royal Bank of Scotland (RBS), JPMorgan and Societe Generale. These five financial institutions were found guilty of rigging either or both the Libor (inter-bank lending rate) and Euribor (inter-bank lending rate for unsecured funds) rates to improve profits on all sides. Only two of the banks, Deutsche Bank and RBS, were fined for rigging both sets of rates. Investors will have to sort out which of the five banks they should steer clear of, and which to still consider investing in.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
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Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: