Barclays Scandal: Libor Essay

The Libor Scandal began in the year of 2012. In 2003, a major outbreak investigation started due to reliable banks being a prime source of manipulation of interest rate, affecting many in the benefit of

The emergency rescue of the Royal Bank of Scotland in 2008 has cost the UK government thus the British taxpayer a huge amount of money. Many people are upset about the high bonuses the RBS management board have received, both because of the outrageously high amount and because the performance of the bank on the long-term was not good at all.

It is very difficult to say who was hurt and who benefited by LIBOR manipulation. Listener Cameron Napps, in response to our piece on Friday wrote, “They [banks] were lowering LIBOR rates and BENEFITING the 'average Joe '... The only people who have gotten screwed by the deal are the institutional traders ... who were on the other side of rigged trades."

The bank at some point received negative attention for issuing credit to arms companies, including companies like Boeing, Lockheed Martin, General Dynamics, Textron, Colbun, BAE Systems and EADS. Some companies within the bank’s portfolio have also been involved in environmental and labor rights violations scandals, for instance Wal-Mart and Total USA. This negative attention may lead to loss of investor confidence in the bank.

In the summer of 2012, JPMorgan Chase, the largest leading U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that hidden this massive loss.

As noted in an April 2017 article by The New York Times, James E. Staley, the CEO of Barclays is currently under investigation after trying to identify a whistleblower at his company. According to the article, the scandal started when Barclays decided to hire an individual named Tim Main. Tim Main had previously worked at JP Morgan alongside Staley and so they were very well

On September 8 2016, the Consumer Financial Protection Bureau (CFBP) announced that it was taking an enforcement action against Wells Fargo Bank . Wells Fargo is a Fortune 100 company and one of the "Big Four Banks" of the United States. Investigations conducted by the Bureau revealed that employees of the bank created unauthorized deposit and credit card accounts across the country to meet sales goals. Over the years, the bank’s employees opened over 1.5 million fraudulent bank accounts and 0.5 million fake credit card accounts for customers, to meet sales targets and obtain bonuses. The affected consumers, were being harmed by the associated charges and fees for these accounts. The fees include insufficient funds or overdraft fees for the deposit accounts and annual fees for credit card accounts.

Unsurprisingly, interest rate hikes dominated the front page. Westpac, Australia's second largest bank, recently hiked rates 0.2 percent in a cynical ploy to dampen exploding property prices. In reality, the costs of doing business are simply being offset by taxpayer money, as Westpac seeks to build up its capital reserves on the backs

Please summarise a recent event or development relating to local, regional or global activity that impacts our Investment Banking business. (150 words) *

There was a dismissal of 5,300 employees and $185 million in fines against Wells Fargo (Stewart, 2017). The bank’s pressure-cooker sales environment made a toxic sales culture. Wells Fargo held unrealistic sale quotas to its employees and held policies that drove employees to participate in illegal behaviors to meet unreachable goals. Employees opened millions of unauthorized credit cards and deposit accounts, fees and other charges were racked up, money was transferred from customers’ accounts without their knowledge and their permission, they also created phony email addresses to enroll customers in online banking services, all to hit sale targets and receive bonuses. Employees who called attention to the abusive, fraudulent behaviors were ignored and wrongfully terminated and retaliated

Scandals in the business world are not an uncommon topic to appear in new headlines. Recently Wells Fargo has fired over 5,000 employees for creating over 2 million fake accounts. New bank and credit card accounts were created without prior knowledge from their customers. The accounts that were created resulted in those customers inquiring fees such as overdraft fees. These fake accounts have been created over a five-year timeframe.

stood accused of in a series of scandals that nally came to a head in the largest bankruptcy

Banks have been at the forefront of the financial system for as long as they have existed and have captured the attention of stakeholders on both controversial grounds as well as being undisputed with regards to the many helpful services they provide. JP Morgan & Chase is one such bank, surrounded by hostile news articles and excessive scrutiny but rightfully so as it has of recent been the topic of much controversy as turning a blind eye to the moral codes established by the Securities and Exchange Commission (SEC) and assisting Ponzi Scheme masterminds in swindling unsuspecting investors.

Here we see a failure of the board to look at management critically. They accepted only the information presented to them by the CEO and did not demand a better picture on the state of RBS’s business in mortgage trading even while the CEO’s story seemed to constantly be changing. The board exists as a watchdog to the executive management yet nothing was done to hold the CEO accountable to the truth.

According to group´s performance from 2002-2006 identifies that Barclays´ performance underpinnings are represented by its strategy of acquiring other banking (such as ABN Amro and Banco Zaragozano) concerns to expand its retail as well as other banking services through representation in international markets as represented by the bank’s presence in 60 countries. This provides Barclays with the means to sell its highly profitable investment banking services as well as be positioned to service the cadre of multinational companies that utilize its diverse banking financial service packages.