Barclays and the LIBOR scandal

The regulations the commonwealth enacts to control the conduct of our banks are policed by ASIC and APRA. The ASIC (Australian Securities and Investments Commission) Act 2001 (Cth) contains within division 2, the unconscionable conduct as well as consumer protection provisions in relation to financial services providers that are no longer in the Trade Practices Act. APRA is a body established in 1998 by commonwealth legislation.The role of the Australian Prudential Regulation Authority (APRA) is to oversee the banks, and act as a regulator within the finance industry. (Wentworth, 2007)

Barclays is a British multinational bank and finance services company founded in London. It operates in retail, wholesale and investment banking, wealth management, mortgage lending and credit cards. It is found in over 50 countries and territories and has around 48 million clients around the globe. Its total asset is US$2.42 trillion as of December 2011 and is the seventh-largest of any bank worldwide.

Andrew Bailey (2013) “The future of UK banking - challenges ahead for promoting a stable sector”. Bank of England [online]. Available from:

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 CFPB was born with the authority to supervise, examine and enforce rules over any provider of financial products and services, most of them which have never been subject to a direct federal supervision or examination. Furthermore, the Bureau is authorized to prescribe regulations designed to prevent any unfair, deceptive, or abusive act or practice in the financial products market. (Mayer, Brown, 2010).

Government departments are instrumental to a flourishing and secure economy. They are in place to serve their constituents and ought to keep that in mind. The Federal Deposit Insurance Corporation (FDIC) fits this well and is in place to ensure that bank users are protected in instances of economic downturn and that their money is insured. In this way, regulation is extremely necessary to ensure a stable economy in instances of financial instability. To completely understand the FDIC, it is important to understand why and how it was created, its history, major responsibilities and who the leaders are.

Firstly, the Dodd–Frank Act pushes forward the reformation of America's financial regulatory system. Several new regulatory authorities are set up to enhance the government supervision and administration of the industry. The Financial Stability Oversight Council is established to identify material risks to financial stability, with the support from Office of Financial Research. Moreover, Fed is entitled to exercise additional superintendence beyond banks.

The government regulation of the financial industry by the Dodd-Frank Act was the most compelling topic of this class. A financial regulatory process was created which limits risk through the enforcement of transparency and accountability. The main objective of the Dodd-Frank Act was to provide regulation to banks that was more stringent. The FSOC was created as a result of the Dodd-Frank Act. The two main objectives of the FSCO was to stop the occurrence of another recession and to resolve persistent issues. The elimination of bailouts funded by taxpayers was another important element of this act. The CFPB also known as the Consumer Financial Protection Bureau was created as a result of the act. The consolidation of consumer protection responsibilities

On Friday, 8th September 2017, Commonwealth Bank welcomed APRA announcement. The Australian Prudential Regulatory Authority regarding the ‘panel members and terms of reference for APRA’s inquiry into the Group’s governance, culture and accountability frameworks’. This means that the APRA announced that it has picked three panel members to conduct the previously announced prudential inquiry into the Commonwealth Bank of Australia. This would establish a prudential inquiry following a number of issues which

The Dodd-Frank Act put a considerable burden on financial regulators whom have to work out the details in order to implement its vision. It includes a variety of points relating to the prevention of a future crisis (Kim & Muldoon 2015). Some of these major points include: (1) The creation of a new Financial Stability Oversight Council, comprising existing regulators, to be responsible for overseeing any financial institution or set of market circumstances determined to be likely to result in risk to the overall economy, (2) A reallocation of banking oversight responsibility among the Federal Reserve System, the Comptroller of the Currency, and the FDIC, requiring the Federal Reserve Board to supervise nonbank financial companies “that may

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 article explains the Well’s Fargo bank scandal in it’s entirety, highlighting and centering the article around the reasons as to why this scandal is more influential, and important than the numerous banking scandals of the past decade. It explains how the employees of the company would create accounts, totalling 2 million, that were fraudulent and created without express permission or knowledge of the customers. This leads to 5300 employees to be fired and questions raised over who is to blame for this incident. Although this information can be gained from any news source today, this article emphasizes the reasons as to why the scandal is so impactful in society today, and why it is gaining so much attention compared to other scandals that seem almost daily. The points that are highlighted are the fact that it is an easy to understand scandal, the question of who is to be blamed still looms unclear, it is perfect for the

While financial banks were inadequately controlled by regulatory agencies, there was a necessity for fresh policies to resolve these issues. Prior to the Volcker Rule becoming implemented, the crooked financial activity done at the time had affected the clients of the banks. The complexity of the regulations caused dissatisfaction for the clients and customers and eventually affected the overall business flow of the bank institutions. There was a strong need for new procedures and restrictions before the banking industry would have another breakdown and in the worst case, cause another financial crisis within the American economy. The biggest problem during this crucial financial time included how the banking industry was consistently earning large amount of money from these high-risk trades with the institution’s own

The aim of this report is to investigate the Douglas Harvey Barber v Guardian Royal Exchange case. The main findings of this report is to see what effect Douglas Harvey Barber had on the financial services industry before and after his case.

Before the advent of the Federal Deposit Insurance Corporation (FDIC) in 1933 and the general conception of government safety nets, the United States banking industry was quite different than it is today. Depositors assumed substantial default risk and even the slightest changes in consumer confidence could result in complete turmoil within the banking world. In addition, bank managers had almost complete discretion over operations. However, today the financial system is among the most heavily government- regulated sectors of the U.S. economy. This drastic change in public policy resulted directly from the industry’s numerous pre-regulatory failures and major disruptions that produced severe economic and social