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Home > Regulation > UK Regulation

Libor: timeline of a travesty

The Libor scandal has revealed a practice that dates back several years, across two continents.

By Marc Shoffman | Published Aug 24, 2012 | comments

28 August 2007: New York Fed receives mass-distribution emails suggesting Libor rates are too low.

3 September: Bloomberg reports that Barclays has high Libor rates relative to others.

25 September: Gillian Tett writes in the FT about complaints that Libor rates are a work of fiction.

November: Bank of England hosts meeting of the Sterling Money Markets Liaison Group where members express concern that Libor rates were lower than actual traded interbank rate.

December: The Commodity Futures Trading Commission says a Barclays employee contacted it to complain that the bank was not setting “honest” rates.

6 December: An unnamed Barclays compliance officer expresses concern to the FSA about Libor rates being submitted by other banks.

1 June 2008: Timothy Geithner, the president of the US federal reserve, emails the Bank of England governor with memorandum about enhancing the credibility of Libor.

29 May: Wall Street Journal claims that measures for Libor submissions and credit default swaps have diverged.

October: Deputy Bank of England governor Paul Tucker relays Whitehall’s concerns about Barclays rates to the bank’s chief executive Bob Diamond.

December: British Bankers’ Association review into Libor does not spot any Libor fixing.

27 June 2012: Barclays is fined £290m for Libor fixing following an international investigation by the FSA, the US Department of Justice and the US Commodity Futures Trading Commission.

2 July: Chancellor of the exchequer announces independent review into Libor by Martin Wheatley.

3 July: Mr Diamond and chief operating officer Jerry Del Missier resign.

6 July: Serious Fraud Office announces investigation into Libor fixing.

16 July: Parliamentary Commission on Banking Standards launched.

17 July: FSA tells Treasury select committee that seven other banks are being investigated over Libor fixing.

24 July: Barclays launches review of business practices.

25 July: European Commissions proposes including Libor fixing in market abuse regulations.

10 August: Wheatley Review proposes further criminal powers for the FSA and alternatives to Libor

18 August: Treasury select committee releases report on inquiry into Libor fixing, citing failures at the FSA, Bank of England and Barclays.

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