Libor

Chancellor George Osborne is to announce an inquiry into UK banking standards, with the Serious Fraud Office (SFO) also considering launching criminal prosecutions over the LIBOR rate-fixing scandal.

Analysts have suggested the fallout from the LIBOR price-fixing scandal may ultimately lead to significant asset disposals or even a break-up of the bank.

The reputation of the UK banking sector hit a new low last week after the FSA hit Barclays with its largest ever fine of £59.5m for breaching LIBOR regulations.

FIXED INCOME

BARCLAYS MESSAGES

UK regulators and global banks are discussing an overhaul of interbank lending rates amid a probe into alleged manipulation of the benchmark.

The Royal Bank of Scotland, the UK's largest government-owned lender, has dismissed at least four employees in connection with a probe of potential interest-rate manipulation, sources told Bloomberg News.

Henderson is testing the water for a C-share issue to raise additional capital for John Pattullo's Diversified Income trust.

"If I can buy four yachts from my investments, why should I care if my manager can buy one for himself?"

Asset backed securities (ABS) are presently the most attractive section of the corporate bond market, according to Royal London's Sajiv Vaid.