As Libor Scandal Deepens, US Loses Confidence in UK Regulators

With the Libor bank investigations expanding internationally, there is increasing criticism from U.S. regulators over the handling of the scandal by British banking regulators, with the latter accused of not responding strongly enough to early allegations of rate rigging. Differences in regulatory practices between the United States and the UK could undermine a strong international response to banks’ collusion to rig rates, which could create more uncertainty and put downward pressure on the markets.

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