UK: Banks and Global Economy Casualties of Libor Scandal

Once again the financial industry has been struck with a major scandal that threatens its stability and long-term health. The recent admission by the British bank Barclays PLC (NYSE BCS, London: BARC.L) that it rigged the so-called Libor rate — a key benchmark that determines short-term lending levels among banks — may only be the tip of the iceberg as other banks appear to have been involved. If the scandal grows, it will be another blow to the beleaguered global economy and could become an issue in the 2012 U.S. presidential campaign.

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