This story has been unfolding for some time. From the Telegraph:
Interest rate was rigged by Barclays
Mortgage holders, credit card users and small businesses may have been charged too much for their loans after one of Britain’s biggest banks admitted systematically rigging financial markets.
10:00PM BST 27 Jun 2012
Barclays was fined a record £290 million for repeatedly distorting basic financial data which are used to set interest rates on millions of loans and other transactions around the world.
Bob Diamond, the Barclays chief executive, said he will give up his multi-million-pound bonus over the scandal but faced calls to resign amid claims that his bank’s actions posed a threat to the global market system.
As MPs suggested that a criminal inquiry should be held, financial regulators warned that other major British banks may also have been involved in attempts to manipulate data about interest rates. Up to 40 global banks face being named and shamed as part of the investigation.
The scandal relates to the London Interbank Offered Rate (Libor), the interest rate that banks pay on money they borrow from one another.
The Libor rate is one of the basic pieces of information on which trillions of pounds of financial transactions are based. It helps determine the interest rate that is applied to loans, including some mortgages, credit cards and business loans.
So your every man and woman is paying more for their mortgages, credit cards etc. because these guys wanted to make more money.
And now the boss won’t even resign! Surely him and a bunch of others should be in jail shouldn’t they? Surely this is some kind of fraud or theft?
One rule for the masses, another for those at the very top it would seem.