The Global Banking Scandal

The Global Banking Scandal

The ousted chief executive of Barclays Bank says it wasn’t the only financial institution that tried to manipulate benchmark interest rates. We look at the widening global bank scandal and the role of regulators.

The deputy governor of the Bank of England Paul Tucker goes before the British Parliament today as part of a widening probe into bank manipulation of a key interest rate. He will be quizzed about whether banks were encouraged to lie about the LIBOR during the 2008 financial crisis. LIBOR is the acronym for London interbank overnight rate, used to set interest rates for trillions of dollars of contracts worldwide. The scandal has already cost Barclays Bank its top three officials. As part of a $450 million dollar settlement with U.S. and U.K. regulators, the British banking giant admitted to rigging the LIBOR as early as 2005. The probe has widened to most global banks. Joining Diane to discuss the fallout are University of Maryland School of Law professor Michael Greenberger, chairman of the Commodity Futures Trading Commission Gary Gensler, Francesco Guerrera of The Wall Street Journal and Andrew Palmer of The Economist.

Guests

Michael Greenberger

professor, University of Maryland School of Law, and former Director of Trading and Markets at the Commodity Futures Trading Commission

Gary Gensler

chairman, Commodity Futures Trading Commission

Francesco Guerrera

editor, Money & Investing, The Wall Street Journal

Andrew Palmer

finance editor, The Economist

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