Barclays Bank Plc. ("Barclays") has agreed to pay fines totalling USD 453 million in connection with manipulation of LIBOR and EURIBOR interest rates. By reaching this settlement, Barclays avoids criminal prosecution in the US. The settlement was agreed with the U.S. Commodity Futures Trading Commission ("CFTC") and the Justice Department ("DOJ") in the US and the Financial Services Authority (FSA) in the UK.
The CFTC believed it had conclusive evidence that Barclays tried to manipulate LIBOR and EURIBOR. Allegedly, there was also evidence found that Barclays manipulated financial figures from 2007 to early 2009 to protect the financial reputation of Barclays. It is alleged that the top management at Barclays was aware of these practices. Shortly after disclosing the settlements, the CEO and chairman of Barclays resigned.
The European Commission and various other regulators across the globe are also investigating the manipulation of LIBOR and EURIBOR by other banks. The settlement reached by Barclays is separate from this investigation. Furthermore, the British Parliament also announced a broad investigation into the various forms of fraud in the City of London. At the same time, the U.K. Serious Fraud Office (SFO) is currently examining whether criminal prosecution of the bankers is possible.