“Barclays Libor case could have severe consequences for banks.”

October 28, 2012 Finance 

Larry Elliot in the Guardian: “The narrow issue is whether Guardian Care Homes was mis-sold financial instruments, known as swaps, that were marketed by banks as a way to protect businesses and public bodies against costly movements in interest rates. But in essence the action is a test case that could have severe consequences for the banks. The charge against Barclays is that the £12m the company claims it lost was the result of manipulation of the Libor (London interbank offered rate), used to price all sorts of financial products from student loans to mortgages and borrowing costs on credit cards.”

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