Dishonest Bankers

[DanaC]

Barclays has been fined £290m ($450m) for trying to manipulate a key bank interest rate which influences the cost of loans and mortgages.

Its traders lied to make the bank look more secure during the financial crisis and, sometimes - working with traders at other banks - to make a profit.

Barclays said the actions "fell well short of standards". Chief executive Bob Diamond is to give up his bonus.

The Financial Services Authority is now looking into other banks.

The matter is also being investigated in the US, where the Department of Justice said criminal investigations into "other financial institutions and individuals is ongoing".

The fine is part of an international investigation into the setting of interbank rates between 2005 and 2009.

It seems highly likely that other banks, and in other countries, will face similar sanctions to that of Barclays.

"The FSA continues to pursue a number of other significant cross-border investigations in this area and the action we have taken against Barclays should leave firms in no doubt about the serious consequences of this type of failure," the UK regulator said.

http://www.bbc.co.uk/news/business-18612279


Pretty grim stuff.

This is from about 6 months ago:

The time for bankers to show any remorse for the failings that dragged Britain into the worst recession since the Wall Street crash is "over", the new boss of Barclays said yesterday, as the fury over the City's forthcoming £7bn bonus binge grows.

An unrepentant Bob Diamond, who will collect a pay package worth about £8.5m this year, faced down his critics at the Treasury Select Committee. Asked if David Cameron or George Osborne had asked him during their meetings to show restraint over his own bonus, Mr Diamond said: "No."

He also told MPs that he "resented" some of their lines of questioning.

Responding to suggestions that Barclays Capital, the separate investment bank he used to run, indulged in "casino capitalism" and "black jack", Mr Diamond responded angrily.

"I resent the fact you refer to it as black jack. I think it is wrong. I think it is unfair. I think it is a poor choice of words. We have some fantastically strong financial institutions in this country and I think they deserve better. It is not appropriate to talk about casino banking in Barclays Capital."

"Frankly, the biggest issue is how do we put some of the blame game behind us? There was a period of remorse and apology for banks – that period needs to be over. We need banks to be able to take risk, working with the private sector in the UK."

http://www.independent.co.uk/news/bu...e-2182231.html