Reuters reports that the mega banks being investigated globally over LIBOR fixing are all pushing regulators hard for a group settlement- as no one wants to be the second bank to admit to LIBOR manipulation, and face the global scrutiny that forced out Barclays’ Bob Diamond.

The banksters could care less about agreeing to settlements with the CFTC, SEC, and FSA- their main concern is avoiding public scrutiny resulting in loss of their executive positions, or worse- criminal charges.

A group of banks being investigated in an interest-rate rigging scandal are looking to pursue a group settlement with regulators rather than face a Barclays-style backlash by going it alone, people familiar with the banks’ thinking said.

Such discussions are preliminary, and it is unclear if regulators will enter these talks, aimed at resolving allegations that banks attempted to manipulate the London interbank offered rate, or Libor, a benchmark that underpins hundreds of trillions of dollars in contracts.

Still, there are powerful incentives for the banks to enter joint negotiations.

Barclays Plc was the first to settle with U.S. and British regulators, paying a $453 million penalty and admitting to its role in a deal announced June 27. Its chief executive, Bob Diamond, abruptly quit the next week, bowing to public pressure and erosion of the bank’s reputation.

The sources told Reuters that none of the banks involved now want to be second in line for fear that they will get similarly hostile treatment from politicians and the public.
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