Barclays Executive Summary

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Executive Summary
Barclays is one largest bank in the UK that was involved in the scandal of manipulation of interest rates known as Libor. Barclays employees and traders were conspiring with submitters to control the fluctuation of the rate, they decided to increase or decrease the Libor rates. 16 Banks were sued by Regulators involving the Libor scandal. Libor is known as the London Interbank Offered Rate one of the Benchmarks used in determination of interest rates. Banks could easily manipulate the rates by submitting figures that are not true to the determiner of the Libor rate. Well known banks were the ones involved in the scandals such as Barclays, JP Morgan, UBS, Royal Bank of Scotland.
Many of the banks involved in the Libor manipulation
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Several financial institutions were involved in the Libor scandals during the past years and Barclays traders was one of the organizations involved. Barclays traders was involved in the manipulation of interest rates scandal where Barclays was trying to make huge profits. Its traders were conspiring with ex-employees at the bank whom submit their Libor rates each and every single morning to either increase or decrease their Libor rate. All the efforts taken by the traders and the employees were based on the motive of making huge…show more content…
Barclays couldn’t gain much of a profit because the country was suffering from financial crisis which left several companies being shut down. The manipulation of Libor rate left several industries under huge debts during the crisis and the financial crisis worsen up because of the debt individuals were in. Barclays didn’t gain but it lost a lot after the Libor scandal was revealed as the bank was being fined for its involvement in the manipulation of Libor rates. Barclays reputation as the largest bank was tarnished after the scandals were revealed.
Barclays lost more money than they could have made by the fines they are currently paying for their role in the manipulation of the Libor rate. The company is being sued by other companies because of the money they’ve lost in the process of manipulation of the Libor rate.
Who suffered from the manipulation?
Consumers and municipalities suffered a great loss due to the manipulation of Libor rates by the banks that were involve in the scandals. Municipalities around the states suffered up to 400 million on the Libor manipulation scandals. Investors also suffered a loss in their return as the bank was forced to pay fines for their hand in manipulation of the Libor
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