How Bank Market Manipulation Persists After the Libor Crackdown

More than a decade after the Libor scandal exposed manipulation of a benchmark used to price trillions of dollars in financial products, misconduct continues to surface across global markets. Banks are estimated to have paid $31.7 billion in regulatory fines for cartel-like conduct and market manipulation between 2010 and 2026, yet new cases continue to emerge.

Dr. Rosa Abrantes-Metz explains that while extensive reforms have raised the cost of cheating, the underlying economic incentives remain and “nothing is bulletproof.” She also considers how growing civil litigation risks may discourage firms from using leniency programs, making market manipulation harder to uncover.