Libor

CRACK TEAM

Ben Bernanke, chairman of the US Federal Reserve, branded LIBOR "structurally flawed" in his first remarks since Barclays was fined £290m for attempting to rig the inter-bank lending rate.

The governor of the Bank of England, Sir Mervyn King, has insisted he did not call for Bob Diamond's scalp before Barclays' former chief executive stepped down.

Leading fund managers including Richard Buxton at Schroders have been increasing their exposure to major UK banks following the LIBOR scandal which has rocked the sector.

Bank of England deputy governor Paul Tucker came under fire again today as an email emerged showing he had discussed LIBOR rates with HSBC and RBS, as well as Barclays, back in 2008.

Senior FSA executive Andrew Bailey has accused Barclays of operating with a "culture of gaming" which came from top of the bank.

The former chief operating officer of Barclays, Jerry del Missier, has told MPs Bob Diamond instructed him to lower the bank's LIBOR submissions, on the orders of the Bank of England's deputy governor Paul Tucker.

Head of the Financial Services Authority (FSA) Lord Turner is set to face criticism from MPs today over the watchdog's slow reaction to LIBOR abuses, according to reports.

Sanlam's Kokkie Kooyman has been capitalising on the plunge in bank shares caused by the LIBOR scandal, buying into Lloyds, Royal Bank of Scotland and Barclays.

LIBOR rate-rigging penalties and damages to investors could reach $22bn for the 12 global banks involved, according to Morgan Stanley estimates.