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Posts Tagged ‘lack of regulation of derivatives market’

Barclays Libor Scandal: Who’s Really to Blame?

Posted by Larry Doyle on July 10th, 2012 8:10 AM |

The London Interbank Overnight Rate, aka Libor, is the referenced benchmark rate for only some multiple hundreds of trillions of dollars worth of securities and contracts. As such, the rate is of enormous importance to the markets and global economy. I personally recall beginning almost every day as a trader on Wall Street by inquiring of an individual on the finance desk, “Where’s Libor?”

With the manipulation of this rate rocking the markets, everybody wants to know who’s to blame.  There is certainly plenty of blame to go around.

If we were to listen to Bob Diamond, former CEO of Barclays, we would be inclined to believe that the blame in that organization rested merely within a very small group of individuals. How convenient. Do you think the CEOs of other banks would also like to ring fence this issue to a small group of expendable individuals on selected trading desks? No doubt.  (more…)






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