The Libor manipulation scandal has, as WSJ reports, ensnared at least 17 financial institutions and 22 individuals in a wide-ranging investigation spanning 11 countries and four continents. So far, it has netted at least $5 billion in penalties, with more on the way. The Wall Street Journal has taken the most complete list of allegedly involved parties and mapped an extensive web of 298 reported connections that reveals the depth of the alleged conspiracy from the 'alleged' ringleader Tom Hayes and involving practically ever major bank in the world.
The alleged ringleader... Tom Hayes...
Former UBS and Citigroup trader, criminally charged with fraud in U.S. and U.K. Pleaded not guilty to U.K. charges; hasn’t entered a plea to U.S. charges. Told WSJ that “this goes much much higher than me.” The institutions and individuals in the web allegedly worked with him to manipulate rates or previously employed him when he was allegedly manipulating rates, according to the U.S. Justice Department, U.K. Serious Fraud Office and people familiar with the investigation.
And the first mover advantage... Barclays
Barclays in June 2012 became the first bank to settle Libor-rigging allegations, setting off a political storm in the U.K. Top executives resigned. Reached roughly $450 million settlement with U.S. and U.K. authorities in June 2012. Admitted wrongdoing. The institutions in the web allegedly worked with Barclays to manipulate rates, according to people familiar with the investigation. The individuals are former Barclays employees involved in the alleged manipulation or nonemployees who allegedly worked with Barclays employees to manipulate rates, these people said.
And The Biggest fines... UBS
UBS, where Mr. Hayes was a Tokyo-based trader, paid $1.5 billion to settle allegations that it conspired with rival banks to rig Libor and other rates. Reached roughly $1.5 billion settlement with U.S., U.K. and Swiss authorities in authorities. Admitted wrongdoing. The institutions in the web are suspected of having worked with UBS to manipulate rates, according to people familiar with the investigation. The individuals are former UBS employees or allegedly worked with UBS employees, these people said.