Libor Scadal

Manipulation of the London Inter-bank lending rate is one of the significant financial crisis to the global market back in recent year. Libor is serving as the primary indicator for the average rate at which banks that contribute to the determination of short-term loans in the London inter-bank market. It is unlike the base rate which is provide by the bank of England the libor is calculated by the Britsh Banker's Association (BBA) from estimates submitted by the major international banks based in London. 
Barclays Bank one of the well-known international banks which was underreporting its rate to prevent the public speculation about the bank's risk and credit profile during the crisis in 2007-2009, through manipulation of the libor submissions it does helps to provide a healthier picture of the bank's credit quality and ability to raise funds, thus, it helps the bank to stimulate the profit.

This misconduct related to the daily setting of the Libor and the Euribor directly influence the value of trillion of dollars of financial deals between banks and public on the mortgage deals.

How does this manipulation of libor rate affected the global mankind in the daily life?

During the manipulation of libor rate, the rate was actually being pushing downward, thus, it affected the saver badly. Depositor tends to receive a lower interest rate in the riskier investment tools. However, small saver like us does not being affected much because the interest rate given is base on the base rate that provided by the Bank of England instead of the libor rate.

In the video, a statement has been mentioned saying that finance is there to be a utility to simply serve the economy or it should be a business as profit seeking enterprise for his on right? 3 principle by the founder of Barclay Quaker, integrity, honesty and plain dealing in the banking sector. What do we want from the bank? Banks serve as a crucial institution  to promote the economy growth of a nation, A scandal from a bank might be lead to a global market issues which affected million of people on the earth. The bank definitely have to do somethings in order to restore investor trust toward the bank. I'm totally agree with the saying that a major culture change shall be take in to account for the banks which involving in the scandal. The resignation of the CEO and a huge fine from regulators do not really ensure the banks out of the scandal again. Bank should have to internalize the 3 principle (integrity, honestly and plain dealing), so that i will be able to affect how banks behave in the future.

However, in my opinion, the unhealthy culture way of doing business have been implanted deeply in business man as we can observe from the volume of the business scandal  has been reveal in pass. This might take generation to change the corrupted culture. Hoping that the banks can be scandal-free in the future, if not it is going to hurt the tax payer badly!