If true, this is of course very naughty.
FTC Capital, which is based in Vienna, claimed the banks colluded to artificially depress the cost of borrowing and limit trade in Libor-based derivatives during the period.
But do note what the allegation is. That the banks depressed LIBOR. That is, everyone with a mortgage tied to LIBOR (and yes, a number of US mortgages are tied to one or other of the US$ LIBORs) would pay *less* in interest as a result of these activities.
When these allegations first surfaced there was at least one person I saw claiming the opposite. Wonder how many will continue to do so?