LIBOR fixing scandal developing in UK

July 5, 2012 4:11 AM

The LIBOR fixing scandal opened last week when, Barclays, a UK bank, paid a $453 million fine to US and UK authorities for its role in fixing the LIBOR, a key interest rate used to set borrowing rates for trillions of dollars in loans and derivatives around the world. Marcus Agius, chairman of Barclays, resigned in response to the scandal, followed later in the week by the bank's CEO Bob Diamond and COO Jerry del Missier.

Mervyn King, Governor of the Bank of England, has given his opprobrium, as well as the leader of the Labor party Ed Miliband. However the BoE deputy governor Paul Tucker may have advised Diamond to push down the LIBOR in 2008, and furthermore Tucker may have been passing that advice on from the UK government itself. Bob Diamond gave testimony before members of UK Parliament yesterday and Tucker is likely soon to follow.

Background:
LIBOR for mortals
What is Libor and why should we care? (youtube)
Why is Nobody Freaking Out About the LIBOR Banking Scandal?

posted by eurypteris (3 comments total)

Gyp other rich people of their money, you will be punished. Suck a few extra billion from the taxpayers' coffer, and you will be politely reprimanded, but don't feel compelled to admit you did anything wrong.
posted by Bathtub Bobsled at 4:23 AM on July 5, 2012

Open thread.
posted by Horace Rumpole at 4:24 AM on July 5, 2012

Barclays Executive Bob Diamond Also Resigning as Host of Mitt Romney Fundraiser, $25,000 and $75,000 a ticket.
posted by R. Mutt at 4:25 AM on July 5, 2012