The Justice Department has announced that it is investigating another in the seemingly unending stream of Banking frauds. Investigators revealed a wide ranging investigation into large private banks that are alleged to have conspired with traders to manipulate LIBOR interest rates. LIBOR rates (London Interbank Offered Rate) are the interest rates banks charge other banks for loans. The value of the LIBOR market itself is estimated to exceed $60 trillion and LIBOR interest rates effect $350 trillion in the retail installment sales market worldwide.

The Justice Department alleges that several large banks allowed traders to set fabricated LIBOR rates using proprietary banking software so that they could then attempt to convince investors of municipal pension funds to bet against the manipulated rates. These were bets that only the banks could win that netted at least eight banks an estimated three quarters of a trillion dollars in profits over multiple years.

The DOJ is currently investigating criminal market manipulation by Bank of America, Credit Suisse, Barclays Bank, HSBC Holdings, JP Morgan Chase, Lloyds Bank, Norinchukin Bank and the Royal Bank of Canada. Regulators have said that they fear these same private financial institutions, many of which received substantial US taxpayer bailouts over the past few years, may have similarly fraudulently manipulated interest rates at the TIBOR (Tokyo Interchange) and the EURIBOR (European Bank Interchange).

its all true:
Criminal Libor Probe of Banks Is Under Way, U.S. Tells Judge; Bloomberg