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MARGARET WARNER (Newshour): The scandal ventures on a key interest rate called LIBOR and on attempts to manipulate it.
Last week, Barclays paid $450 million in fines to settle accusations by British and U.S. regulators that it helped rig the LIBOR rate in a way that benefited its business. LIBOR is the acronym for the London Interbank Offered Rate. It is determined by what banks report they are paying to borrow from other banks.
The rate has huge significance. It's used to set interest rates in more than $350 trillion of contracts globally, ranging from home mortgages to complicated financial swaps. The settlement set off a firestorm, leading to the resignation this week of Barclays CEO Robert Diamond and hearings in Parliament. Regulators are looking at other global banks as well.
For more, we turn to David Enrich, European banking editor for The Wall Street Journal.
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