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(Answered)-Hello , This is a Case Study Essay that have five check to


Hello , This is a Case Study? Essay that have five check to include in a 2-3 page Apa format , No Plagiarism please.?? This course is MT219 Marketing. adding a Title page and references,??


Case studY

 


 

Chapter ?

 


 

3

 


 

Barclays Bank

 

? iStockphoto.com/Bill Noll / ? iStockphoto.com/Kenneth C. Zirkel

 


 

Banking on Ethics

 


 

On February 28, 2012, the United States Department of

 

Justice announced a criminal investigation into abuse

 

of the LIBOR, an important interest rate regulated by the

 

British Bankers? Administration. Four months later, Londonbased Barclays Bank was fined more than $440 million by

 

United States and English financial regulatory agencies for

 

knowingly manipulating the LIBOR to its own advantage.

 

The political and economic uproar that followed the exposure of Barclays? actions led to several resignations (including that of Barclays? CEO Bob Diamond) and further

 

criminal investigations. Former governor of New York Eliot

 

Spitzer called the incident ?the mega-scandal of megascandals,? while journalist Robert Scheer christened it ?the

 

crime of the century.?

 

The LIBOR, short for ?London Interbank Offered Rate,?

 

is the interest rate banks pay when they borrow money

 

from each other. To calculate this rate, up to 20 influential British banks report their own proposed bank-to-bank

 

lending rates. The highest and lowest rates are trimmed

 

off, and the remaining rates are averaged, creating the

 

LIBOR. A low LIBOR often points to financial stability, while

 

a high LIBOR indicates that banks lack confidence in each

 

other?s economic health. What Barclays was fined for was

 

proposing artificially low bank-to-bank rates to make itself

 

appear more stable than it actually was. However, further

 

investigations indicated that Barclays colluded with other

 

banks??nd perhaps even the British government??o

 

a

 

t

 

impact the LIBOR itself. An unnaturally low LIBOR would

 

suggest greater economic stability than actually existed,

 

misleading investors and loan-seekers in a potentially

 

volatile market, and thus creating profit for the banks involved in the collusion.

 

The rate manipulation carried out by Barclays affects

 

not only London banks and business executives, but

 

also small businesses and individuals?? erhaps even

 

p

 

you yourself. Because it has historically been considered

 

trustworthy and economically accurate, the LIBOR is

 

used all around the world as an interest rate and financial

 


 

instrument benchmark. Everything from currency values

 

(including the United States dollar) to multimillion-dollar

 

corporate debts to home mortgages to individual student loans depend on the LIBOR. While it may not seem

 

like it, each of these is a product that is marketed and

 

sold. As loans and exchanges of varying types are banks?

 

primary sources of profit, banks compete to exchange

 

these products within a market. At the consumer level,

 

consider how many car and credit card commercials

 

you have seen advertising a low interest rate. Hundreds

 

of trillions of dollars worth of these financial products

 

have been sold based on the LIBOR?? rate that may

 

a

 

not in fact accurately reflect the world?s shaky economic

 

standing.

 

Journalists and economic analysts have been quick to

 

reject the ethicality of Barclays? actions. As information about

 

the LIBOR scandal broke, TIME contributor Christopher

 

Matthews wrote, ?[Barclays? alleged collusion] speaks to the

 

moral compass, or total lack thereof, of the world?s financial

 

professionals?the public and the government no longer

 

trust the industry to set its own standards for acceptable

 

behavior.? In a piece for The Nation, Robert Scheer said, ?The

 

modern-day robber barons pillage with a destructive abandon totally unfettered by law or conscience and on a scale

 

that is almost impossible to comprehend.? Dennis Kelleher,

 

president of nonprofit financial watchdog organization

 

Better Markets, Inc. was perhaps most condemnatory of all:

 

?What we probably need is to wipe out this entire generation of so-called banking leaders who apparently have no

 

ethics or integrity.?While the total sum of the LIBOR scandal?s

 

consequences are yet to be seen, Barclays? actions may go

 

down in history as a monumental failure in business ethics

 

and corporate social responsibility.

 

Sources: Christopher Matthews, ?LIBOR Scandal: The Crime of the Century?,? TIME, July 9, 2012, http://

 

business.time.com/2012/07/09/libor-scandal-the-crime-of-the-century (Accessed July 10, 2012);

 

Danny Guttridge, ?Understanding the LIBOR Scandal,? Kapitall Blog, July 9, 2012, http://wire.kapitall.com

 

/investment-idea/understanding-the-libor-scandal (Accessed July 10, 2012); ??The Mob Learned from Wall

 

Street?: Eliot Spitzer on the ?Cartel-style Corruption? behind Libor Scam,? Current, July 3, 2012, http://current

 

.com/shows/viewpoint/videos/the-mob-learned-from-wall-street-eliot-spitzer-on-the-cartel-style

 

-corruption-behind-libor-scam (Accessed July 10, 2012).

 


 

CASE STUDIES

 


 

1

 


 

 


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