20 More Banks were Rigging Interest Rates: British Bankers Now Facing Criminal Inquiry Over Scandal That was Kept Secret for Years!
- 20 more banks were rigging interest rates: British bankers now facing criminal inquiry over scandal that was kept secret for years!
By James Chapman, Becky Barrow, Ruth Sunderland and Rob Davies, http://www.dailymail.co.uk/
– Barclays shares drop 15 per cent as pressure on Diamond grows
– George Osborne promises new criminal sanctions for market abusers
– RBS, HSBC and Lloyds all named as under investigation as scandal widens
Hundreds of bankers across three continents are embroiled in the interest-rate fixing scandal that has left Barclays chief executive Bob Diamond fighting to save his job. As pressure intensified on Britain’s highest paid banking boss to quit, MPs heard a string of other financial institutions across the world were under investigation. At least 20 banks are believed to be under suspicion, with growing demands for a criminal investigation.
Barclays’ shares crashed by 15.5 per cent in a day as the implications sank in, wiping £3.7billion from its value, with other banks also hit. Barclays has been fined £290million after devastating emails revealed that its traders manipulated the London Interbank Rate (Libor) – the rate at which banks lend money to each other. Chancellor George Osborne told the Commons the exchanges ‘read like an epitaph to an age of irresponsibility’.
On the blackest day for Britain’s finance industry since the 2008 economic crisis:
- Serious Fraud Office investigators were revealed to be in talks with financial watchdogs over the scandal
- David Cameron and Ed Miliband piled pressure on Mr Diamond to resign
- Barclays and other banks were braced for a damning verdict today in an official report on mis-selling of complex loans to 28,000 small firms
- Mr Osborne promised new criminal sanctions for those guilty of market abuse
- Downing Street faced a growing clamour for a judge-led public inquiry into the ethics of Britain’s banks