The price of interest rates
It has just been reported that Barclays were fined €360 million in the UK and the US for its “serious, widespread” breaches of rules, extending over a number of years, with the aim of manipulating the price of interest rates that affect the cost of...
It has just been reported that Barclays were fined €360 million in the UK and the US for its “serious, widespread” breaches of rules, extending over a number of years, with the aim of manipulating the price of interest rates that affect the cost of borrowing for millions of customers living all over the world.
The authorities found that this misconduct involved “a significant number of employees”, including senior managers, and called into question the integrity of the markets.
It was reported that at the time this was taking place, Bob Diamond, the current Barclays boss, was running the division where it all happened. Mr Diamond was recently in the news trumpeting Barclays’ commitment to acting as a “good citizen”, despite the bank’s run-in with Her Majesty’s Revenue and Customs over a €625 million tax avoidance.
In a statement, Mr Diamond is reported to have said: “Nothing is more important to me than having a strong culture at Barclays. I am sorry that some people acted in a manner not consistent with our culture and values.”
On its part, Barclays said that Mr Diamond would forfeit his bonus this year as a result of the attempted manipulation.
The poor fellow will now have to eke out a living only on his pay packet, which this year will amount to a measly €21 million.