This is probably every bit as big a deal as Matt Taibbi seems to think it is.
Read this, too.
Just to give you an inkling of what this is about, from Wikipedia:
However, on Feb 28. 2012, it was revealed that the SEC is conducting a criminal investigation into LIBOR abuse. Among the abuses being investigated are the possibility that traders were in direct communication with bankers before the rates were set, thus allowing them an unprecedented amount of insider knowledge into global instruments. Since LIBOR underpins approximately $350 trillion in derivatives, a trader with inside information could make tens of millions of dollars illegally on a single transaction.
Yes, that’s $350 TRILLION, with a ‘T’.
One problem, though: what’s the remedy? Piddling little $200-300 million fines? Still. We’ll probably be hearing a lot more about ‘LIBOR’ in the coming weeks. Gonna be a hot summer.