$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!


Discuss about the LIBOR Rate Manipulation In US.



Barclays plc was accused of setting the interest rate of the Libor in the US, which was higher than the other panel banks. It was against the ethical leadership to use the power to create imbalance in the financial markets. The company was charged with fines from the UK regulators and even from the US Department of Justice (Treanor, 2016).

Voidance of Business Principles

Financial services authority (FSA) is a key regulator of Barclays that observes the LIBOR rate manipulation. The company took this step to hide its borrowing costs from the outside market for the benefit of derivative traders and to avoid inquiry from market. Barclays lacked control and risk management to hide the fake submission of LIBOR rate. FSA did not take any disciplinary action at the initial stage but later on posed hefty amount as fines on the company after seeing that they were not conducting their business operations diligently for a certain span of time (Rose & Sesia, 2014, p. 7). Moreover, Barclays infringed the Commodity Exchange Act but cooperated with FSA in the case investigation.

LIBOR Rate Manipulation

Manipulation of the LIBOR rates was not only the reflection of the company decision but derivative traders with short term maturities from London and New York repeatedly demanded it. Derivative traders used to demand frequent rate changes to the money market desk for their personal gain (Rose & Sesia, 2014, p. 8). Fixed and floating interest rate swap affects the floating player with higher and lower payment with the consecutive changes in the LIBOR rates in over the counter (OTC) trading. Other banks were also pressurized to adjust their rate with the Barclays’ manipulated rate. Barclays’ never told the derivative traders that they were asking for unethical manipulation and passed the requests to the money market desk.

Financial Crisis due to high and low bid dilemma

Granting unlimited requests from the short term traders and the implementation of demands risked the security of other entities essentially as investment firms, governments, corporations, and households were linked to Barclays plc. The benefits are not equal due to the change in LIBOR interest rates. Barclays’ consulted FSA after they were exposed to media speculations regarding financial standards, which started an internal conflict with the senior and junior authorities resulting in higher LIBOR rates. The steady rise of LIBOR rates surpasses rest of the panel banks asserting financial crisis. The US faced crisis in money market and hence resulted in stagnation of all the fund holdings and the credit markets and it heavily impacted the UK money markets as well (Rose & Sesia, 2014, p. 10).

Causes and effects

Robert Diamond is designated as the CEO of Barclays plc to take account of foreign exchange business and debt markets. He didn’t take any strict action to stop the traders’ manipulation over money market desk that voids the business principles. It further depicts leadership faults resulting in an organization’s unethical framework (Brown & Trevino, 2006, p. 602).

Barclays’ way of serving derivative traders was unethical in terms of serving only their short term results (Mele, 2107, p. 3). The company further lacked to think about the difference in profit making for their varied businesses. It created losses in lowering the LIBOR rate for some firms and reverses the result as it took the higher bid.

The nature of short term incentive is provocative for the derivative traders. Barclays acted to lower the LIBOR rate to cater one genre of investors, thereby making them uncertain in money market. They tried to skip the media controversy for the unethical financial outlook and led to the disastrous financial crisis over the US and the UK money market (Roulet, 2015, p.10).

Conclusion and Recommendations

LIBOR is a global benchmark associated with rate-setting process and inter-bank lending. LIBOR rates should be transparent in accordance with the market data. LIBOR authority should direct the banks through a proper code. The case of Barclays thus illustrated the lack of company ethics and transparency with respect to disreputable leadership resulting in nationwide financial crisis.



Brown, M. E. & Trevino, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17, 595-616.

Mele, D., Rosanas, J. M. & Fontrodana, J. (2017). Ethics in finance and accounting: Editorial introduction. J Bus Ethics, 140, 609-613.

Rose, C. S. & Sesia, A. (2014). Barclays and the LIBOR scandal. Boston: Harvard Business School Publishing.

Roulet, T. (2015). ‘‘What good is Wall Street?’’ Institutional contradiction and the diffusion of the stigma over the finance industry. J Bus Ethics, 130, 389-402.

Treanor, J. (2016). Barclays bank reaches $100m US settlement over Libor rigging scandal. Retrieved from


Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). LIBOR Rate Manipulation In US. Retrieved from

"LIBOR Rate Manipulation In US." My Assignment Help, 2018,

My Assignment Help (2018) LIBOR Rate Manipulation In US [Online]. Available from:
[Accessed 04 June 2020].

My Assignment Help. 'LIBOR Rate Manipulation In US' (My Assignment Help, 2018) <> accessed 04 June 2020.

My Assignment Help. LIBOR Rate Manipulation In US [Internet]. My Assignment Help. 2018 [cited 04 June 2020]. Available from:

For years now, is providing affordable essay help to millions of students worldwide. Our essay assistance services have helped us in assisting students with even the toughest essay assignments. We take pride in the fact that we cater the best assistance to search terms like help me with my essay. We offer affordable services in the fastest way possible. For our fast delivering services, students trust us with their urgent essay assignment needs. Two of our most popular essay writing services are maths essay help and English essay help.

Latest Accounting Samples

ACCT20071 Foundations In Accounting 2

Download : 0 | Pages : 10

Answer: Introduction The paper will focus on the integrating reporting tool is used by AGL Energy Limited. The main purpose is to discuss on my Australian companies is using Integrating reporting tool more and to assess the integrate reporting tool used by AGL Energy Limited. Corporate Social Responsibility is the responsibility of a business towards their community, customers and other stakeholders in order to provide social value and make ...

Read More arrow Tags: Australia 5 ACCOUNTING AND FINANCIAL REPORTING Central Queensland University 

ACCT322 Management Accounting For Financial Health And The Liquidity

Download : 0 | Pages : 2
  • Course Code: ACCT322
  • University: West Virginia University
  • Country: United States

Answer: Answer to Question 1 Financial accounting refers to the discipline that is utilized in order to determine the financial health of the company. The determination of the financial health and the liquidity position of a company are important. This is because the financial information presented in the accounting statements reflects the true financial condition of the company, which helps the stakeholders of business to interpret the finan...

Read More arrow

HA3011 Advanced Financial Accounting 6

Download : 0 | Pages : 10

Answer: Part A Based on the application of the conceptual framework usefulness of the financial information is considered with the application of factors such as “comparable, verifiable, timely and understandable” nature of the financial reporting. The relevance factor is associated to the making a difference in the decisions which relate to the economic theories. It has been further seen that the financial information is needs to...

Read More arrow

HI5020 Corporate Accounting And Annual Reports

Download : 1 | Pages : 8

Answer: Introduction: Evaluation of financial figures, expenses, liabilities and assets of an organization is mandatory to evaluate the position of the company and the rules and regulations which have been followed by the company while preparing the financial reports of the company. In this report, annual report of The Citadel Group Limited has been evaluated and the tax expenses, current tax assets and tax payable amount of the company has b...

Read More arrow

ACC305 Assurance And Attestation System

Download : 0 | Pages : 5
  • Course Code: ACC305
  • University: Elite Education
  • Country: Australia

Answer: Introduction: In the provided situation, it can be seen that Mortdate Accounting firm has provided all the papers related to the audit of many public companies to Penshurts Accountants.  APES 110, Confidentiality, 140 states that it is the obligation on the auditors that they cannot disclose the confidential information of the audit clients acquired at the time of providing professional services. For this reason, by providin...

Read More arrow

Save Time & improve Grade

Just share Requriment and get customize Solution.

We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits




Overall Rating



Our Amazing Features


On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.


Plagiarism Free Work

Using reliable plagiarism detection software, only provide customized 100 percent original papers.


24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.


Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.


Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

234 Order Completed

100% Response Time

Samantha Ji

PhD in Chemistry with Specialization in Organic

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 4/5

248 Order Completed

100% Response Time

Lloyd Bernabe

MSc in Accounting

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

265 Order Completed

97% Response Time

Ken Campbell

MSc in Electrical Engineering

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1758 Order Completed

99% Response Time

William Martinez

MS in Biology

Washington, United States

Hire Me

FREE Tools


Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.


Essay Typer

Get different kinds of essays typed in minutes with clicks.


GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.


Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.


Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability




Your Approx Earning

Live Review

Our Mission Client Satisfaction

First time using My Assignment Help Services - First meeting with customer service was very thorough and spent time explaining. Once hired and explained what I needed, I received exactly what I had asked for. The assignment was sent to me before th...


User Id: 436537 - 04 Jun 2020


student rating student rating student rating student rating student rating

Good Job - provided exactly what I asked for. Addressed all questions in the assignment. APA formatted with references within the past 5 years. Assignment finished before the time I asked for it.


User Id: 436537 - 04 Jun 2020


student rating student rating student rating student rating student rating

Finally a wonderful work ! Satisfied by rework after escalation as expected revived the solution! Would definitely recommend my friends! Thanks


User Id: 332636 - 04 Jun 2020


student rating student rating student rating student rating student rating



User Id: 240291 - 04 Jun 2020


student rating student rating student rating student rating student rating
callback request mobile
Have any Query?