Barclays Scandal to Spread

It’s been a rough week for Bob Diamond. First he was forced to resign from his position as CEO of Barclays after the bank came under fire for falsifying interest rates and then, Wednesday, he was raked over the coals by parliament. But Barclays is hardly the only bank that will undergo investigation for manipulating the London interbank offered rate (Libor). Other banks also projected artificially low rates at the beginning of the financial crisis to give the impression that they were not suffering. Analysts predict settling the cases for these banks will cost billions of dollars for the banking industry and serious trouble for other bank chiefs like Diamond.