A storm, or more aptly, a hurricane of litigation is on its way for the banks involved in the LIBOR rate-rigging scandal. The LIBOR banks face not just the prospect of criminal prosecution, but also exposure to law suits by thousands of market participants and others who relied upon the key interest rate in transactions and financial products.   Getting out ahead of the other banks, the UK's Barklays has been busy making deals to contain its exposure to prosecution and protect its executives.  Upon admitting its role in the scandal and implicating the other rate setting banks as well as central banks, Barclays promptly entered a civil settlement with the Commodities and Futures Trading Commission, agreeing to pay $200 million, and negotiated a deal with the UK's Financial Services Authority and the US Justice Department whereby Barclays and its executives escape prosecution. The remaining rate setting banks, however, remain under threat of prosecution for antitrust and fraud violations, potentially including prosecution under statutes created to fight organized crime. The prospect of criminal prosecution and the threat of anti-trust treble damages are only the beginning.  All of the rate setting banks, including Barclays, face the prospect of wave after wave of lawsuits from market participants affected by or reliant upon LIBOR.   These include major banks like Goldman Sachs whose interest rate swap products relied on LIBOR, as well as approximately 75% of America's major cities across the country who purchased those interest rate swaps.  In addition, large public pension funds as well as hospitals, universities, and other nonprofits who held interest rate swaps or other derivatives pegged to LIBOR are considering suing the banks.