Barclays: The others are crooks too!
…We’re sorry we got caught!
Diamond, who resigned Tuesday, has apologized, and Barclays reiterated the bank’s remorse in the document: “These events should never have taken place, and Barclays deeply regrets that they did.”
Still, Barclays also found a way to point fingers at the other banks involved in setting and manipulating interest rates: “It [is] ironic that there has been such an intense focus on Barclays alone, caused by our being first to settle in the midst of an industry-wide, global investigation.”
»Barclays: Don’t just blame us!
Ever feel like the financial markets are simply a rigged game where the house (i.e. the world’s largest banks) always win? Reading text messages and emails between traders at Barclays (BCS) about their often successful attempts to manipulate global benchmarks for interest rates will only reinforce that belief.
These traders influenced the pricing of the London Interbank Offered Rate or Libor, a benchmark that dictates the pricing of up to $800 trillion of securities (yes trillion) and several other key benchmarks between 2005 and 2009.
Traders’ emails and text messages were made public as part of a $453 million settlement Barclays with U.S. and U.K. regulators to settle its role in the Libor manipulation. Libor rates are reset daily by British banking regulators who receive quotes from up to 18 banks on what it costs them to borrow in the public markets each day.
Interest rate swaps traders in New York and London asked Barclays employees and employees at other banks to move rates in directions that benefited their trading positions, according to the bank’s settlement with the Commodity Futures Trading Commission.
»‘For you … anything.’ Barclays Libor emails paint ugly picture
- Barclays bank chairman Marcus Agius steps down over LIBOR rate fixing scandal – CBS News (cbsnews.com)
- The Barclays Saga and Libor (sandyyadav.com)
- Barclays boss falls to rate fixing scandal (cbsnews.com)
- It’s Not Just Barclays (money.cnn.com)
- Barclays to pay $400M-plus to settle LIBOR charges (kansascity.com)
- Barclays ex-boss Bob Diamond faces MPs’ questioning – BBC News (bbc.co.uk)
- Bob Diamond forgoes bonus as Barclays fined for Libor manipulation (telegraph.co.uk)
- Barclays shamed by £290m fine for market fixing (independent.co.uk)
- Lawmakers to grill ex-Barclays bank CEO over scandal (edition.cnn.com)
- Barclays is fined record £290m for fixing Libor (standard.co.uk)