Why it is only the beginning of the LIBOR scandal

LIBOR

Christine Johnson, manager of the Old Mutual Corporate Bond fund, explains why the impact of the LIBOR scandal could be far reaching for the fund management industry.

In Hollywood, a film that runs through multiple sequels is called a franchise. It is hard not to suspect that the LIBOR scandal is going to be a franchise. The opening instalment, with vast fines and the sudden downfall of a succession of powerful executives, has caught the imagination of politicians, regulators, the media and the public. It is likely to run and run. In the story so far, Barclays agreed to pay a total of $450m to UK and US regulators to settle allegations that it manipulated LIBOR between 2005 and 2009 and soon after agreed to the departure of the CEO, Chairman and COO. ...