Barclays was fined USD 450m for trying to manipulate interest rates. However, there are indications that other firms were also involved in this. Other big names believed to be under investigation including Citigroup, JP Morgan, Deutsche Bank, HSBC and Royal Bank of Scotland.
“It’s hard to believe that a policy which seems to be so systematic was not known by people at or very near the top of the bank,” said Mr. Taylor.
Chief executive Bob Diamond is brought under pressure for the scandal, as some high officials have blamed the people at the top for irresponsibility.
The Liberal Democrat peer, Lord Oakeshott, said that if Mr Diamond had any shame, he would resign.
“I think fines and public criticism will not stop these behaviours. These behaviours will not stop until the people perpetrating it or responsible for overseeing them face the prospect of criminal charges and the prospect of going to jail,” said former City Minister Lord Myners.
Barclays’ misconduct relates to the daily setting of the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor).
These are two of the most important interest rates in the global financial markets and directly influence the value of trillions of dollars of financial deals between banks and other institutions.
They can also affect lending rates to the public, for instance with some mortgage deals.
It is not yet clear whether Barclays staff actually succeeded in manipulating the interest rates to the bank’s advantage and therefore whether it had any impact on borrowers.
While the FSA said only that the Barclays employees had attempted to do so, the US Department of Justice said that on some occasions they did affect the Libor and Euribor rates.