The revelations that LIBOR has been gerrymandered by various banks including Barclay’s is a matter of the greatest concern. Many financial institutions including credit card agencies and mortgage lenders set their own rates based on LIBOR. . It means, that some people paying mortgages, for example, have been charged more than they should. Accusations have been made that previous government ministers have been involved. Why did the banks want to do this; the one word answer is greed.
Barclays have already paid £290 million in fines over this and their Chief Executive Bob Diamond has had to resign.The present Government have set up a Committee to investigate what has been going on but I don’t think a Parliamentary Committee will have the ability to get to the bottom of this scandal. We have already witnessed Bob Diamond at the Treasury Select Committee evading all the questions.What this needs are two things; an investigation by the Fraud Office and prosecutions where necessary and a full blown judicial review with witnesses under oath and QC’s asking probing questions so that people like Diamond cannot prevaricate as he did at the Treasury Select Committee.It seems that Diamond is expecting to receive over £20 million as compensation for losing his job. In my opinion, he should receive nothing at all.