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 banks, Barclays, UBS and Royal Bank of Scotland. During investigations on Libor manipulation by banks, shocking information surfaced, traders; brokers and submitters that were supposed to be separated by Chinese walls were openly communicating with one another before Libor rates submission. The ‘informal’ conversations on their emails; instant messaging and transcripts of telephones revealed illicit requests to manipulate Libor and collusion amounting to corruption and misconduct. One could argue, as to the intent behind these conversations was business-as-usual. One will find it difficult to understand the intent behind this misconduct, but during the investigations a conversation surfaced whereby one trader warned the other to be