“The Libor bid-rigging scandal is poised to more than double the losses suffered by U.S. states and localities that bought $500 billion in interest-rate swaps before the financial crisis,” according to Bloomberg News (Oct. 9).

“Manipulation of the London interbank offered rate cost issuers in the $3.7 trillion municipal-bond market at least $6 billion, according Peter Shapiro, managing director of Swap Financial Group in South Orange, New Jersey. Shapiro, a muni adviser for more than 20 years, specializes in the contracts…

“’This number shows that banks can’t be trusted in this market,’” said Marcus Stanley, policy director for Americans for Financial Reform, a Washington group that has pushed for stronger regulation of lenders. ‘Municipalities would be the group most likely victimized by the abuse of Libor.’”