Winners and losers
[Barclays chair was right to resign over scandal, yesterday] Bob Diamond should be applauded for having led and very successfully grown Barclays' investment banking operations into a global titan. But an operation or organisation typically reflects the standards and behaviours of its leaders, especially if the leader has a strong personality.
Changing the metric of Libor appears to be fraught with legal difficulties, due to the sheer number of contracts currently tied to it. Would the International Swaps and Derivatives Association have the authority to change the contracts, and would their reach extend to all such contracts?
I don’t understand who lost out from the manipulation. I see mention of mortgage holders and pension funds who were counterparties, but how did they lose?
Libor manipulation isn’t a victimless crime. Chief among the victims are the vast majority of Barclays employees for whom the scandal will be an embarrassment. Money comes and goes – a damaged reputation is tougher to fix. And the reputation of the City as an employer to many of Britain’s best and brightest also suffers. Defences salaries and bonuses often cite talent and expertise. What evidence of talent is there in trading a rigged market?
Drought news just in: April to June this year has been the wettest second quarter in the UK since records began in 1910.
The public is asking for head of top bankers. How many politicians, regulators and central bankers have resigned for the mess we are in?
Barclays one of biggest FTSE risers – but for perspective, still 14 per cent lower than last Monday, £3bn off value due to Libor scandal.
Spain is now paying more to borrow for 3 months than Germany is doing for 30 years. @plegrain