The UK government has ordered an independent review into the inter-bank lending rate, after Barclays Plc (BCS: Quote,BARC.L) last week said it has agreed to pay 290 million pounds or $452 million to U.S. and UK regulators to settle allegations that the company's employees tried to manipulate key global benchmark interest rates.
The review is expected to include the rate setting process and sanctions for manipulation.
Labour leader Ed Miliband has been demanding a full public inquiry into banking practices. The shadow chancellor has said the review was not enough.
Barclays' resolution was part of an industry-wide investigation by authorities that several banks, including Barclays, sought to manipulate the London Interbank Offered Rate or Libor and the Euro Interbank Offered Rate or Euribor. The fine has prompted Barclays' Chief Executive Bob Diamond and three other executives to voluntarily forgo their bonuses for this year.
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by RTT Staff Writer
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