Barclays & Libor Scandal

BARCLAYS & THE[pic 1]

LIBOR SCANDAL

Table of Contents

1. Executive Summary        3
2. Introduction        3

2a        LIBOR        3

2b        Importance of LIBOR        3

2c        Parties governing LIBOR        4

1. LIBOR scandal        5

3a        Zero Sum Game        5

3b        Stakeholders of LIBOR        5

1. Barclays’ involvement        6

4a        Barclays’ wrongdoing (Continue checking from HERE)        6

4b        Factors contributing to the wrongdoing        6

4c        Ethicality of jumping onto the bandwagon        7

4d        Diamond’s involvement        8

4e        What should have been done when competitors are cheating        9

4f        Ethicality of acceding to the regulator’s request to cheat        9

1. Who is at fault?        10

5a        Parties involved in the scandal        10

5b        Most responsible party        10

1. Steps taken        11

6a        Assessment of efforts to fix LIBOR        11

6b        Further suggestions to improve the LIBOR setting process        12

1. Conclusion - Possibility of fixing LIBOR?        12
2. Bibliography        13

1. Executive Summary

This report provides an overview and analysis of the LIBOR scandal in 2008. It examines the derivation of LIBOR and its importance in the economy today due to the pervasive use of LIBOR in international markets. The widespread utility of LIBOR is reason for the scandal’s immense magnitude.