Perhaps you think The lies in the LIBOR scandal doesn’t affect you?
The CEO and chairman resign, 13 employees disciplined and five dismissed at Barclays, 25 bankers were forced to leave UBS and others disciplined and dismissed in RBS. US $1.5 billion Fines for UBS, Barclays fined US $464 million and RBS fine even bigger and running into many millions of Dollars with at least 13 other banks under investigation.
There were more than $ 300 trillion contracts linked to LIBOR including mortgages, student loans and interest rate swaps with at the moment at least 30 lawsuits filed.
What is more concerned when you read the Bloomberg article March 2013 is the way that LIBOR was rigged was in the 3 ways traders attempt to manipulate the rate. Firstly by conspiring with rate setters, then colluding with other banks and finally bribing inter-dealer brokers.
So many seriously dishonest and near criminal acts linked to LIBOR rigging happened at the height of the financial crisis. So what must we do to avoid dishonesty continuing to fester, or breaking out in other parts of the banks and industry?
The first thing to have inspiring leaders who model high levels of integrity, and courage to tackle dishonesty and unhealthy toxic behaviour. Even now in the big banks a blind eye is still turned (by some so called “leaders”) to employees who misbehave provided they make lots of money and deliver on their numbers.
Profits at any cost have serious implications for us all.