Barofsky: Government Complicity Provides Libor Defense

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Published on Aug 2, 2012 by

Aug. 1 (Bloomberg Law) -- The world's biggest banks are likely to defend lawsuits alleging they manipulated the Libor interest rate by saying the federal government knew it and did nothing, according to Neil Barofsky, former Inspector General for TARP. Rather than put maximum pressure on the banks by suing them individually, the government is likely to try to sidestep arguments it was complicit in the Libor mess by seeking a global settlement, he tells Bloomberg Law's Lee Pacchia. Barofsky is the author of the new book "Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street."