Something tells us Jamie Dimon has been smashing the Ambien lately, and it’s not anxiety over CIO losses, it’s due to the liklihood JP Morgan will be implicated in LIBOR rate fixing in the coming days and weeks.
The NY Times has just broken the news that the Department of Justice is pursuing CRIMINAL CHARGES against numerous US banks regarding their involvement in the LIBOR rate-fixing scandal.
If true, s***’s about to get real for Dimon, Blankfein, Moynihan, Diamond, and gang- but we’ll believe it when we see it, we expect to see massive settlements from the US banks (including BOA and JPM) to evade criminal charges.
From the NY Times:
As regulators ramp up their global investigation into the manipulation of interest rates, the Justice Department has identified potential criminal wrongdoing by big banks and individuals at the center of the scandal.
The department’s criminal division is building cases against several financial institutions and their employees, including traders at Barclays, the British bank, according to government officials close to the case who spoke on the condition of anonymity because the investigation is continuing. The authorities expect to file charges against at least one bank later this year, one of the officials said.
The prospect of criminal cases is expected to rattle the banking world and provide a new impetus for financial institutions to settle with the authorities. The Justice Department investigation comes on top of private investor lawsuits and a sweeping regulatory inquiry led by the Commodity Futures Trading Commission. Collectively, the civil and criminal actions could cost the banking industry tens of billions of dollars.
The multiyear investigation has ensnared more than 10 big banks in the United States and abroad. With the prospects of criminal action, several firms, including at least two European institutions, are scrambling to arrange deals, according to lawyers close to the case. In part, they are trying to avoid the public outcry that stemmed from the Barclays case, which prompted the resignation of top executives.