Libor

Lloyds Banking Group could have to pay out as much as £1.5bn if found guilty of manipulating the LIBOR rate, analysts at Liberum Capital have warned.

CONTRARIAN

GOSLING'S GROUSE

The US Federal Reserve raised concerns about LIBOR as early as 2007 and shared proposals for reform with the UK regulator, according to reports.

Bank of England deputy governor Paul Tucker has denied being asked by government officials to encourage banks to lower LIBOR submissions at the height of the crisis in 2008.

Brussels is proposing new rules to prevent the manipulation of LIBOR as part of a crackdown in the wake of the rate-fixing scandal.

With banks hitting the headlines for all the wrong reasons, Joanna Faith asks financials managers whether the recent volatility has provided a good buying opportunity or whether there is better value elsewhere.

Ratings agency Moody's has changed the outlook on Barclays' financial strength rating from stable to negative, saying the uncertainty over the bank's future direction is negative for bondholders.

David Cameron has said the LIBOR manipulation scandal is the result of "spivvy and probably illegal" activity but has declined calls for a judge-led inquiry into the affair.

The resignation of Barclays CEO Bob Diamond does not lessen the possibility of criminal proceedings against those involved, Chancellor George Osborne has warned.