ipl-logo

Barclays Executive Summary

1217 Words5 Pages

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 …show more content…

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

Show More
Related

  • Court Case Of John And Timothy Rigas

    771 Words  | 4 Pages

    In 2002 the Securities Exchange Committee filed the suit against Adelphia Communications Corp and all the members listed previously. Adelphia owned several subsidiary companies and the first SEC suit against them is for hiding the liabilities of Adelphia in these companies. The second was for making false statements to deceive others such as Wall

    Read More

  • Summary Of The First Day By Edward P Jones

    189 Words  | 1 Pages

    In the article” The First Day” written by Edward P. Jones, the author describes the first day that his mother took him to register in a new school which was not near his mother’s church. He uses some details to show his mother and he had close relationship. Jones states that his mother and he met a rich woman and her daughter who were very unfriendly. The author also states that his mother asked the unfriendly woman for help to fill out registration paper and told the woman she could not read or write. Then, they met a pretty woman who was the author’s teacher.

    Read More

  • New Deal Dbq

    875 Words  | 4 Pages

    Beginning with bank reform, the New Dealers were able to maintain oversight in the banking industry, which had previously been an unregulated and unpredictable source of capital. The Glass-Steagal Act and the Emergency Banking Act signaled a shift from a lassiez faire approach to the banking industry to one that ensured banks were making responsible loans and not gambling with depositor’s savings in the stock market. By not allowing banks who were considered “irresponsible’ to reopen and separating the savings and investment functions of the banks, a more secure system began to emerge. The impact of this legislation was immediate, as bank failures dropped dramatically. Additionally, major breakdowns in the banking industry were avoided until fairly recently, which came as a result of the repeal of Glass-Steagal.

    Read More

  • Mark Everson Candidacy

    580 Words  | 3 Pages

    They claimed "the company had coached clients on improper tax workarounds that cost the agency as much as $712 million in wrongly awarded refunds"

    Read More

  • John D Rockefeller Impact On Society

    1265 Words  | 6 Pages

    Weather this was a business strategy or wanting moral superiority, writers repetitively targeted Rockefeller. The rumors of borrowing materials from others enhanced the credibility of the accusations (Oil & Ideology). Eventually, Rockefeller became vulnerable, and his trust agreement created a huge mess of legal issues. The company was being convicted of spying on fellow competition, crushing partnerships, threatening to shut down other rivals, and becoming rich off other people's ruins. This went against Federal Law of the Sherman Antitrust Act for monopolizing.

    Read More

  • The Effects Of Elizabeth Warren On The Banking Industry

    923 Words  | 4 Pages

    Elizabeth Warren faced elite democracy when she was trying to form an agency to monitor financial products, and she succeeded in creating a grass-roots movement to truly protect the American people form the banking industry. The banking industry hurt the U.S. economy by hiding small print in financial contracts that cost many individuals and families by tricking them into large payments that they had not accounted for. Banks quickly learned that they could profit from tricking and trapping the American people, and began to make a majority of their financial gains from these policies . The best part about these policies was that they were completely legal.

    Read More

  • Gilded Age Industrialization And The Panic Of 1873

    671 Words  | 3 Pages

    One example was the Credit Mobilier scandal where major stockholders of the Union Pacific Railroad formed the Credit Mobilier company and sold their shares to influential congressmen. These executives essentially hired themselves and stole taxpayer money, a very lucrative scandal. Scandals like the Credit Mobilier were widespread and executives from many other railroad companies often stole from their own companies. Many executives would manipulate the rail companies' stocks to profit greatly. Executives would often bribe influential politicians, and work together to profit themselves.

    Read More

  • Summary Of The Great American Bubble Machine By Matt Taibbi

    820 Words  | 4 Pages

    Goldman Sachs” discusses the evidence found against Goldman Sachs that should make them stand trial. Carl Levin investigated and created a report about the bubble that Goldman Sachs created and the frauds involved in it. In response to the report that Carl Levin publishes, Goldman Sachs misled Congress and then claimed that the bank was just really good at making money. Taibbi then explains that the reason that Goldman Sachs was able to get away with fraud and other crimes was in part due to investment banks convincing the government to allow them to voluntary regulate. These banks claimed that they could regulate themselves because they wanted to weed out corruption and fraud; however, investment banks like Goldman Sachs still participated in those very practices.

    Read More

  • Libor Case Study

    944 Words  | 4 Pages

    Today, it is a known fact that Libor was manipulated and the culprits are some of the largest banks in the U.K and USA. The manner in which they manipulated Libor is still somewhat an issue of an ongoing investigation, although the culprits have paid hefty fines and some have pleaded guilty, while other banks that were thought to be involved have excused themselves from the allegations. Firstly, Barclays bank have come forward to accept the allegations of lowering borrowed rates but are skeptical of their intent to gain anything from it. According to (McConnell, 2013) they deliberately and systemically manipulated the borrowing rates, and it was a work of collusion, this led them to making official inquiries into manipulation of LIBOR at 3

    Read More

  • Financial Case Review: The AIG Scandal 2005

    703 Words  | 3 Pages

    Therefore, there were a few steps taken by Greenberg and Ferguson to make CRD paid $10 million without really paying. Firstly, General RE paid only $7.5 million to commute the existing contract with HSB. Secondly, General RE paid a premium of $9.1 million to NUFIC to reinsure the HSB losses which were just commuted. Thirdly, CRD paid its parent company, General RE a premium of $0.4 million for a fake reinsurance contract. Fourthly, GRD received a loss payment of $13 million from General RE.

    Read More

  • Apush 2003 Dbq

    141 Words  | 1 Pages

    In Addition to maldistribution stood the credit structure of the economy, some farmers were in deep land mortgage debt, so they lowered their crop prices in order to regain credit, and because the farmers were no longer accountable for what they owed banks. Across the nation the banking system found themselves in constant trouble. In America both small and large bankers were concerned for their survival, so they began investing recklessly in stock markets and granting unwise loans. These unconscious decisions would lead a large consequence, such as families losing their life savings and their deposits became uninsured. “ More than 9,000 American banks either went bankrupt or closed their doors to avoid bankruptcy between 1930 and 1933.”Although

    Read More

  • Goldman Sachs: Collateral Debt Obligation

    2670 Words  | 11 Pages

    • Used offshore tax havens to shuffle its mortgage-backed securities to institutions worldwide, including European and Asian banks, often in secret deals run through the Cayman Islands, a British territory in the Caribbean that companies use to bypass U.S. disclosure requirements. • Has dispatched lawyers across the country to repossess homes from bankrupt or financially struggling individuals, many of whom lacked sufficient credit or income but got subprime mortgages anyway because Wall Street made it easy for them to qualify. • Was buoyed last fall by key federal bailout decisions, at least two of which involved then-Treasury Secretary Henry Paulson, a former Goldman chief executive whose staff at Treasury included several other Goldman

    Read More

  • Lehman Brothers: Financial Fraud In 2008

    2178 Words  | 9 Pages

    Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.

    Read More

  • Tesco Accounting Report

    1656 Words  | 7 Pages

    Introduction The main objective of the paper is to develop a report for a shareholder that will interpret financial statements of Tesco Plc. for 2013-2014. The shareholder is specifically concerned about the fraudulent reporting. In this way, the paper will explain the reason of income statement and statement of financial position.

    Read More

  • Pestel Analysis Of Banking Industry

    1748 Words  | 7 Pages

    2.0 SITUATION ANALYSIS Below are Malaysian banking industry’s external environment assessment using Porter’s 5 Forces Analysis. For the purpose of this assessment, 3 top-in-the-league existing domestic banking groups in terms of asset size have been chosen i.e. Maybank, CIMB, and PublicBank. All 8 domestic banking groups have operations in all the 3 segments of banking businesses namely Commercial, Islamic, and Investment bank. Upon analyzing and assessing their immediate surroundings, the banking groups recognize the following important factors that would impact on their competitiveness. THREAT OF RIVALRY AMONG EXISTING BANKS • Too many players in the industry; Each banking group has to contend with 7 other domestic banking groups and 30 other banking intermediaries both local and foreign, comprising 19 Commercial, 8 Islamic, and 3 Investment banks.

    Read More

More about Barclays Executive Summary

Open Document