Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

First Rule of Libor Club: Don't Talk About Libor Club

Curious about how the biggest banks in the United States handle their Libor duties?

Source: 20th Century Fox

Go ahead and ask.

But be prepared to come away no wiser about the London Interbank Offered Rate, or Libor, than when you started.

Mum's the word when it comes to the Libor operations of the largest U.S. banks.

Recall that Barclays investors were blindsided by official revelations that the bank had rigged the key global interest rate known as Libor cost. The British bank was forced to pay . The settlement led to the , its and its chief operating officer.

Shares in the company dived 16 percent the day after the settlements with regulators were announced and have not recovered in the weeks the followed.

So if you are an investor in one of the three U.S. banks that participate in the determination of Libor—JP Morgan Chase, Citigroup, and Bank of America—you probably would like to know if a similar Libor hit may be in the offing.

But to date the banks aren't talking, leaving investors in these banks entirely in the dark when it comes to their Libor operations.

Indeed, when asked about Libor on an earnings conference call Friday, JP Morgan Chase CEO Jamie Dimon declined to provide any specifics.  One analyst on the call pointed out that Libor submissions are made from London, the source of the derivative mismarkings the forced JP Morgan to restate first quarter earnings.

It's part of an effort to distance the banks from the Libor scandal, some insiders suggest.

“We don’t want to be a part of the Libor story, so we’re not going to put anything out there that is not already on the record,” said a person at one of the three banks. He spoke on the condition that CNBC not specify which bank.