Probe into Barclays interest-rate rigging scandal
THE British government has ordered an independent review into the workings of key lending rates between banks, after Barclays was found guilty of rigging them, and summoned the bank's boss to answer questions about the scandal.
US and British authorities fined Barclays €355m for manipulating the London Interbank Offer Rate (Libor), the interest rate on loans that banks make to each other. Barclays was the first to settle in an investigation that is expected to name others and reaches across Europe, Japan and America.
The review will examine Libor and the possibility of criminal sanctions.
The chief executive of Barclays, Bob Diamond, has been summoned to appear before British MPs on Wednesday.
He is now under intense pressure to quit Barclays, where he ran Barclays Capital when the interest- rate rigging occurred in 2005-2009.