Barclays’ Rate-Fixing Is the Tip of a Much Larger Scandal, Bank Officials Say

The Daily Beast – You ain’t heard nothing yet. If you thought the admission by Barclays Bank that it manipulated the key interbank lending rate was shocking, be prepared for a series of larger jolts which could expose the banking system to its worst crisis yet.

It’s not just that other banks will soon be caught up in scandal. As Martin Tucker, the deputy governor of the Bank of England, confirmed to Parliament on Monday, several players were required to collude to fix the LIBOR and EURIBOR rate. Some of these have been alleged in various law suits (such as the seven banks currently being sued by Charles Schwab Company), while the U.S. Justice Department and Britain’s Financial Services Agency (FSA) are already investigating several more. In this sense, Barclays is just an early admitter, hoping for lesser fines and criminal charges in return for shopping the others.

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