Facts of LIBOR Banking Scandal – London Interbank Offered Rate – $360 Trillion

 

View gallery facts and people involved in the scandal

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What was Barclays guilty of? It was caught rigging the Libor (London Interbank Offered Rate). The Libor is the interest rate which banks charge to borrow from each other. It affects the cost of financial contracts from mortgages to loans. WHO was involved? Between ten and 20 rogue dealers, according to the Financial Services Authority, in a four-year period up to 2009. None of them has been named. WHY did they do it? The bankers raised and lowered the Libor rate to suit their needs. At times they plotted to keep the Libor rate low to make their bank look good. A high rate suggests a bank is weaker than its rivals. At other times the bankers raised the Libor to boost their profits — and their own individual bonuses.

 

 

 

 

Barclays Banking Scandal – LIBOR Intrest Rates For $360 Trillion . London Interbank Offered Rate – Libor sets interest rates on an estimated $360 trillion worth of financial instruments worldwide, including mortgages, student loans and credit cards. Investigators had been inquiring about “pervasive” illegality in the manipulation of Libor from 2005 to 2009, when Diamond  ran Barclays Capital.

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