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Case Analysis: The Libor Rigging Scandal

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EXECUTIVE SUMMARY
This assignment provides an analysis of a banking scandal which is The Libor rigging scandal with reference to King III and corporate governance. It will explain the way in which King III applies to corporate governance and further elaborate on a specific scandal which in this case is The Barclays Libor Rigging Scandal. The assignment will include what The Barclays did wrong, the manner of the misconduct, why they behaved in such a manner and the fines that they received.
The method of analysis includes graphs and examples of interest rates that were used. The illustrations can be found in different parts of the assignment. The assignment will provide the current state of the matter, explain who were affected by this scandal …show more content…

It can also help a company to avoid frauds or any other criminal activities. It serves as a policy to the company for a company’s good behaviour.
Corporate governance has advantages but as any other system it also has disadvantages, to maintain the standards that corporate governance is based on can be very costly because parties behind the policies should be paid and the technological machines such as computers and others are costly to operate with the measures that are installed to protect the company from any criminal activity.
According to Valsamakis et al. (2010:84) the draft of King III was released in February 2009 then became effective from March 2010 and it lays out the step that integrates the King III report with the corporate governance. In South Africa the King III report played a major role in the evolution of corporate governance in order for different companies to use the report’s principles. The management should control and direct the implementation of corporate governance and the employees according to their different levels should practise these principles in their day-to-day work in order to reach the goals and objectives of the …show more content…

It can be eight to twelve, even sixteen banks. Libor is in investment, mortgages and credit cards and it affects everyone involved in any form of banking globally. The banks that are involved have been lying to the federals about the interest rates they set amongst each other for years, they give higher or even lower interest rates than they are charging. Manipulating Libor has a great effect on market all over the world, and it is corruption.
2.2 THE BARCLAYS LIBOR RIGGING SCANDAL
According to Ackril et al. (Barclays is a financial service and banking company with its headquarters in London, it is an international company that operates in over 50 countries, and it have been in operation for more than 300 years. Barclays also operates in a South Africa (Absa) and it has investment banking, corporate banking and as well as wealth and investment banking.
It is known that banks have been setting unreal rates when it comes to mortgages and loans, the banks are making loans and mortgages more than they really are, they are illegally increasing or decreasing the rates in a manner that benefits them, people are being robbed off their money all over the

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