You're watching...
FBN's Peter Barnes on Barclays settling claims that it attempted to manipulate key interest rates.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
According to -- this story also somewhat out of Europe is gonna -- -- US investors you should be screaming bloody murder and it's only going to get bigger Barclays announced today it reached agreement at least a settlement.
Regarding charges it manipulated for its own benefit a key international interest rate the Libor rate as well as the Euribor rate.
Peter -- is here with more and -- investors really should -- be furious Barclays essentially is getting away with for lack -- -- -- murder.
While this is an industrywide investigation Barclays the first one to settle here coughing up 450.
Million dollars to settle charges.
Here in the US and the UK as you've been saying Adam that it tried to manipulate a very important international interest rate known as Libor now stick with me.
Libor is a rate set by banks each day on what they will charge when they borrow from each other kind of -- wholesale rate.
But that rate in turn is the benchmark for many other types of loans to businesses -- consumers such as for credit cards mortgages and college loans.
Regulators in the US and the UK have been investigating a -- more manipulation by big banks for several years investigators say that a part -- in one instance the bank proposed based its proposed settings for Libor.
-- requests of its traders who wanted to manipulate the rate to maximize profits -- minimize losses in their derivatives positions and a statement Barkley CEO Bob Dimon said that these events quote fell well short of the -- standards.
I am sorry that some people acted in a manner not consistent with our culture and values -- announced that he and three other top executives were -- will forgo bonuses this year.
Here in the US the CFTC says it's 200 million dollar piece of this settlement.
Is its largest penalty ever regulators continue their investigation of other banks in this important case -- us.
-- -- indicates that senior managers at the bank knew what was happening no one that we know of has been fired accurate.
That is correct that -- the F complaint the order does reference senior managers who apparently directed this kind of activity but does not name any of them.
The only industry in which a cheater can prosper at least as we've seen we've Barclays are right.
