Citibank has reached a settlement with 42 states to pay a $100m fine for manipulation of LIBOR. The settlement contains details of instant messages and emails exchanged between Citibank employees as they misreported what they were paying for interbank loans, mostly in 2008 and 2009.
But manipulation of LIBOR has been disturbingly widespread among major banks, particularly before the 2008 financial crisis. U.K. bank Barclays reached a $453 million settlement over rate-fixing in 2012. The same year, UBS agreed to pay a staggering $1.5 billion in fines for fraud and bribery linked to LIBOR manipulation. Such manipulation may have contributed to the U.S. mortgage crisis by driving up home loan rates.