by: Toby Harnden
July 1, 2012
Traders under scrutiny are based mainly in London and New York.
It follows the £290m fine given to Barclays for fixing Libor lending rate.
The FBI is investigating 14 Barclays traders at the heart of the Libor-fixing scandal, it emerged yesterday.
Although much of the immediate political fallout over Barclays has occurred in the UK, the US could become the main legal arena for the scandal, with financial and custodial punishments dwarfing those imposed elsewhere.
The City of Baltimore has already launched a class action suit and the brokerage firm Charles Schwab has brought a lawsuit in California.
The Schwab lawsuit, filed against several banks, including Barclays, HSBC, Lloyds and RBS, indicates the scale of the scandal could be far bigger than first thought.
The FBI investigation was announced by Assistant Attorney General Lanny Breuer. The 14 traders under scrutiny are believed to have been based mostly in London and New York.
As part of a non-prosecution agreement last week, Barclays paid a record £59.5million to Britain’s Financial Services Authority, while American regulators and prosecutors took about £230million.