Barclays and the Libor: Anatomy of a Scandal

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On June 27, 2012, the storied British bank Barclays admitted that it repeatedly attempted to rig the London Interbank Offered Rate (LIBOR) over a four-year period from 2005-2009. In its settlement, Barclays agreed to pay $453 million in fines and penalties to bank regulators in the U.K. and U.S. The media decried Barclays' rate-rigging efforts as "the scandal of all scandals" and bemoaned the spread of "Wall Street sleaze." By late 2012, dozens of other banks did indeed face LIBOR-rigging inquiries by regulators in various countries. This case delves into the scandal, exploring how the rate-rigging worked, who knew what when, and how the blame was laid, allowing students to explore the social and situational pressures involved in the rigging of the LIBOR.
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