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The financial industry is not new to scandals

The financial industry is not new to scandals

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Running head: LIBOR SCANDAL 1

Libor Scandal: Barclay Bank

Student’s Name

Institution Affiliation

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LIBOR SCANDAL 2

Libor Scandal: Barclay Bank

The financial industry is not new to scandals. Barclays bank, probably one of the oldest

banks in the world has also not escaped from this quagmire. Barclays bank was involved in the

Libor scandal that affected major banks in the world such as UBS, Royal Bank of Scotland,

Rabobank, as well as Barclays. This scandal occurred from 2003 till 2012, when it was

discovered by financial regulators.

Background of the Bank

Barclays bank is a leading financial institution that offers banking and other financial

services. Its headquarters are located in London, UK. It is from its headquarters that it manages

its network of branches, which are located in Europe, Africa, America, and Asia. The bank's

main activities are wholesale, investment, corporate, and retail banking. It also offers other

banking services such as selling and buying currencies, financial advisory, wealth management,

and transfer of funds.

Overview of the Scandal

The main accounting problem at Barclays was manipulation of the Libor rate (London

Interbank Offered Rate). The Libor rate is a benchmark rate that is derived from the rates that

banks offer unsecured credit to fellow banks in the London interbank market. This rate is

calculated using data from a panel of global banks that submit their rates to Thomson Reuters

data collection service every morning before 11:00 am. This data is simply calculated using the

average of the rate that lies between 25% and 75% of the issued representative data. Noteworthy,

this rate is calculated for the dollar, the euro, British pound, the Japanese yen, and the Swiss

franc. Further, maturity rates that are considered start from overnight lending to one year

(McBride, 2016).

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Running head: LIBOR SCANDAL 1 Libor Scandal: Barclay Bank Student’s Name Institution Affiliation LIBOR SCANDAL 2 Libor Scandal: Barclay Bank The financial industry is not new to scandals. Barclays bank, probably one of the oldest banks in the world has also not escaped from this quagmire. Barclays bank was involved in the Libor scandal that affected major banks in the world such as UBS, Royal Bank of Scotland, Rabobank, as well as Barclays. This scandal occurred from 2003 till 2012, when it was discovered by financial regulators. Background of the Bank Barclays bank is a leading financial institution that offers banking and other financial services. Its headquarters are located in London, UK. It is from its headquarters that it manages its network of branches, which are located in Europe, Africa, America, and Asia. The bank's main activities are wholesale, investment, corporate, and retail banking. It also offers other banking services such as selling and buying currencies, financial advisory, wealth management, and transfer of funds. Overview of the Scandal The main accounting problem at Barclays was manipulation of the Libor rate (London Interbank Offered Rate). The Libor rate is a benchmark rate that is derived from the rates that banks offer unsecured credit to fellow banks in the London interbank market. This rate is calculated using data from a panel of global banks that submit their rates to Thomson Reuters data collection service every morning before 11:00 am. ...
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