Lloyds could take £1.5bn hit over LIBOR scandal, analyst warns

Lloyds Banking Group could have to pay out as much as £1.5bn if found guilty of manipulating the LIBOR rate, analysts at Liberum Capital have warned.

Lloyds is among 16 banks currently under investigation by the FSA and US regulators for artificially keeping the benchmark LIBOR rate low in 2008, during the global economic crisis. In a ‘sell' note to clients this morning analysts at Liberum Capital said investors are ‘mistaken' if they believe the lender is insulated from the scandal, warning the bank could face a fine of up to £1.5bn. "Since the announcement of the LIBOR fines on June 27, the share prices of Barclays and RBS have declined 15% and 11%, while Lloyds is down only 1% on the mistaken impression, in our view, that Lloyds...