Lloyds Banking Group could also be getting into the trouble of paying out more than an amount of over the claims which it has made that it was also involved in the manipulation of Libor rate-rigging scandal. This is what the analysts of the country has to say.
While writing a note to its clients one morning, the analysts at broker Liberum Capital gave out a warning that the reaction of the market to the potential exposure of Llyods had been quite depressive and sad as well as he also had to say that the bank may be asked to pay a heavy fine that would be somewhere near 1.5 billion pounds.
Liberum had said that the investors were under a wrong impression that because of the relatively small size of the derivatives book of the bank, that was at the figure of 2.1 trillion pounds is very less than the tenth the size of Barclays’, that is the bank had to bear a lot of flake as well as public anger because of this issue. He was of the view that may this liabiliity may also extended to the customers of the own bank. On that very basis, it seems that the reaction of the market was too sad as far as the exposure of the Llyods in this issue of rate-rigging is concerned.
This fine of 1.5 billion pounds is going to be equal to almost 7 per cent of the market value of the lenders as well as has also come up at by making a calculation of the likelihood of successful litigation against the breaking down of the cost for the 16 banks who have been facing implication in the Libor-rate rigging scandal.
Till date, Barclays has been the only bank who had admitted that they had done manipulation of the key borrowing rate of the world, nevertheless. some more settlements may also come up in the coming months as well as years.
Barclays has paid a fine of 290 million pounds that was given to him by the regulatory authorities of the US as well as UK, in order to close the investigations into the matter of Libor=rate rigging scam as well as they have also agreed on a clause with the US Department of Justice that makes removal of any the chance of further action which could be taken against it as far as this matter is concerned. In order to avail this fiscal aid you can apply instant payday loans no brokers @ with best rates