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Case
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Reference no. IMD-7-2360
Published by: International Institute for Management Development (IMD)
Originally published in: 2022
Version: 11.01.2022

Abstract

During the financial crisis of 2007-2008, Barclays manipulated LIBOR down by submitting artificially low rates to make itself look less risky. Traders also manipulated the rate for personal gain. This ultimately proved costly to Barclays' shareholders when the bank paid fines of USD435 million to settle cases with UK and US regulatory authorities and a further USD100 million in 2016 to 44 states in the US. Barclays also suffered considerable reputational damage and the scandal led to the resignations of chairman Marcus Agius and Group CEO Bob Diamond.

Time period

The events covered by this case took place in 2007-2016.

Geographical setting

Region:
World/global

Featured company

Barclays
Employees:
10000+
Turnover:
GBP 21.8 billion
Industry:
Banking

About

Abstract

During the financial crisis of 2007-2008, Barclays manipulated LIBOR down by submitting artificially low rates to make itself look less risky. Traders also manipulated the rate for personal gain. This ultimately proved costly to Barclays' shareholders when the bank paid fines of USD435 million to settle cases with UK and US regulatory authorities and a further USD100 million in 2016 to 44 states in the US. Barclays also suffered considerable reputational damage and the scandal led to the resignations of chairman Marcus Agius and Group CEO Bob Diamond.

Settings

Time period

The events covered by this case took place in 2007-2016.

Geographical setting

Region:
World/global

Featured company

Barclays
Employees:
10000+
Turnover:
GBP 21.8 billion
Industry:
Banking

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