Lloyds Banking Group could have to pay out more than £1bn over claims it was involved in the manipulation of Libor, according to City analysts. In a note to clients this morning, analysts at broker Liberum Capital warned the market reaction to Lloyds’ potential exposure had been “too sanguine” and said the bank could face having to pay out at least £1.5bn. Liberum said investors were under the “mistaken impression” that because of the relatively small size of Lloyds’ derivatives book, which at £2.1 trillion is less than a tenth the size of Barclays’, the bank was “relatively insulated from this issue”. "The ... (full story)