Barclays : Libor Scandal And Reforms

4002 Words Dec 3rd, 2014 17 Pages
BARCLAYS – LIBOR SCANDAL AND REFORMS
GROUP 5

NITIN K (G034)
NEEMA KAR (G037)
AMAN KAUSHIK (G040)
ARPITA MATHUR (G044)
RANAJOY SEN (G051)
MANOJ VANDRANGI (G063)

Table of Contents

INTRODUCTION 2
BACKGROUND 3
HOW IS LIBOR CALCULATED 3
STAKEHOLDERS 4
EFFORTS TO FIX LIBOR 8
LIBOR REFORMS AND ITS EFFECT ON STAKEHOLDERS 9
CONCLUSION & SUGGESTED LESSONS LEARNED 13

INTRODUCTION

Barclays
Barclays is a multinational banking and financial services company of British origin headquartered at London. It has operations in over 50 countries and has over 48 million customers. Its operations are in retail, wholesale and investment banking. Barclays traces its origin to the goldsmith banking business established in 1690. It has a primary listing in London stock exchange and a secondary listing in the New York stock exchange.

LIBOR
LIBOR stands for London Interbank Offered Rate is the average interest rate estimated by the leading banks in London. It is the rate that the bank will be charged if it is borrowing from other banks. The LIBOR rates are calculated for 10 currencies and for 15 borrowing periods ranging from overnight to one year and is published daily at 11.30 A.M London time by Thomson Reuters. Many money lenders and financial institutions base their rates depending on the LIBOR rates. LIBOR was under the purview of British Bankers Association (BBA) until 2012. In 2012 a scandal came to light in which banks had manipulated the LIBOR rates and BBA…
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