Libor scandal: How the Barclays scandal unfolded

Published on 03/07/2012 01:09

WEDNESDAY, 27 June:

Barclays pays a fine of £290 million to settle claims it used underhand tactics to try to rig financial markets. It had been accused of manipulating Libor and Euribor, the rates at which banks lend to each other in wholesale money markets.

Thursday, 28 June:

Banks face threat of a criminal investigation over the rate-rigging scandal that could cost the industry billions of pounds. The Treasury starts to look at strengthening criminal sanctions for those responsible for market abuse. After fining Barclays, it is revealed that the Financial Services Authority is investigating other lenders, including the taxpayer-backed Royal Bank of Scotland.

Friday, 29 June:

A fresh mis-selling scandal caps a nightmare week for the banking industry, as the FSA announces it has found “serious failings” in the sale of complex interest rate hedging products to some small and medium sized businesses (SMEs). It reaches agreement with Barclays, HSBC, Lloyds and RBS to provide appropriate compensation where mis-selling occurred. Bank of England Governor Sir Mervyn King, right, demands a “real change in culture”.

Saturday, 30 June:

It is revealed an urgent independent review into the inter-bank lending rate is to be set up by the government in the wake of the scandal. The review will consider the future operation of the Libor rate and the possibility of introducing criminal sanctions. Barclays’ chief executive Bob Diamond is summoned to appear before the Treasury select committee.

Sunday, 1 July:

Barclays’ chairman Marcus Agius is reported to be on the brink of stepping down – he leaves the bank the following morning. Business Secretary Vince Cable backs calls for a criminal investigation into bankers involved in the affair.

Monday, 2 July:

David Cameron announces parliamentary review of the banking sector. Labour says the investigation does not go far enough, calling for a Leveson-style probe instead. Serious Fraud Office says it is looking at whether it is appropriate and possible to bring criminal prosecutions.

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