this story stretches far beyond Britain. Barclays is the first bank in the spotlight because it offered to co-operate fully with regulators. It will not be the last. Investigations into the fixing of LIBOR and other rates are also under way in America, Canada and the EU. Between them, these probes cover many of the biggest names in finance: the likes of Citigroup, JPMorgan Chase, UBS, Deutsche Bank and HSBC. Employees, from New York to Tokyo, are implicated.
The rotten heart of finance
. A scandal over key interest rates is about to go global.
Naomi Wolf: The media's 'bad apple' thesis no longer works.
This global financial fraud and its gatekeepers
Last year the CEO of Barclays Bank, Bob Diamond, told MPs that “There was a period of remorse and apology for banks. I think that period needs to be over.”
Yesterday, Barclays was fined £290M by UK
and US regulators
for manipulating the key LIBOR
lending rate. [more inside]
"The calculation of Libor is co-ordinated by just two people, who work in an unremarkable open-plan office in London’s Docklands ..
They do this electronically, but sometimes the co-ordinators make a phone call to a bank that hasn’t sent in its estimates, and if the latter seem implausible – typos, for example, are fairly common – they’re checked, also with a quick call: ‘Hi there, is the Kiwi chap [provider of the estimates for borrowing New Zealand dollars] about? . . . Bit of a spread on the two month. Everyone else is coming in a good bit under that.’" Calculating the Libor and how London became the center of the international money markets, from the LBR.