Several banks under investigation for suspected interest rate manipulation want to secure a group settlement with regulators rather than face individual action, it has emerged.
Discussions between the financiers involved in this process are at a preliminary stage as they are eager to avoid suffering a similar fate to Barclays, which was hit with a fine of around $455 million for its role in the Libor scandal, insiders have told Reuters.
Officials at the banks in question believe Barclays was treated particularly harshly by regulatory bodies due to the level of hostility directed towards it by politicians and the general public.
And, with this in mind, none of these lenders want to go it alone in terms of handling their own investigations as they fear also being subjected to harsh punishments.
While it is unclear which banks remain under scrutiny, the group is thought to include the likes of HSBC, Citigroup and Deutsche Bank.
By Gary Cooper