Interdealer brokers emerge as key enablers in Libor scandal
Interdealer brokers, the middlemen who line up buyers and sellers of securities for banks, are emerging as key enablers in the Libor scandal after three firms paid a total of $2.6 billion for rigging global interest rates.
Global banks are in a phased retreat from the European equity brokerage business, and retrenchment on the part of brokers could result in some tough choices ahead for European institutional investors.