Bloomberg View columnist William Cohan said Thursday that the Libor rate-fixing scandal could lead to stricter regulations on Wall Street.

“The timing couldn’t be worse from Wall Street’s perspective because, as you know, the Dodd-Frank law and the Volcker Rule are still being hashed out in Washington,” he told Current TV host Eliot Spitzer.

“I think it’s going to inure to the benefit of the American people who are going to get tougher legislation, although I wouldn’t put it past Wall Street’s skilled lawyers and lobbyists to continue to water it down despite the outrage that many lawmakers are feeling right now,” he added.

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British and U.S. authorities are investigating manipulation of the Libor, short for London Interbank Offered Rate, a financial instrument used around the world.

Former Barclays chief executive Bob Diamond and chairman Marcus Agius both resigned last week after the British bank was fined $435 million for attempting to manipulate the key market interest rate from 2005 to 2009.

Citigroup and JPMorgan Chase are also being investigated.

Watch video, courtesy of Current TV, below: