Barclays Bank has received a record fine after trying to fix key interest rates. According to The Independent “Investigators from the US and the UK discovered that Barclays traders routinely manipulated one of the world’s most important interest rates, affecting everything from mortgage rates to the value of complex financial derivatives, all in the hope of increasing their trading profits and their own yearly bonuses.”
The Daily Mail reports that a series of emails examined by the Financial Services Authority “show how bonus-hungry traders promised each other bottles of Bollinger champagne to fix the figures that affect millions of homeowners and small firms.”
The Telegraph highlights the record fine handed out to Barclays Bank which 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.”
At a time when many ordinary families and business are struggling, to find that the market has been rigged in this way is appalling. It’s time for a Royal Commission into Banking Practice to get to the bottom of this shady industry.