European banks face the possibility of significant losses from private lawsuits tied to alleged manipulation of benchmark interest rates, such as the London Interbank Offered Rate. However, dismissal of similar claims by a U.S. judge indicates losses could be much lower than expected, experts say. "Given that any loss estimate is still more art than science, investors need to bear in mind that civil-litigation risk from Libor could still be material but is less likely to completely change the investment case than before," Nomura analyst Chintan Joshi said.

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