Titan Business Insurance wonders that given the latest revelations about Barclays and its dealers who are alleged to have ‘rigged’ the Libor rate, which come on top of other allegations about how modern banks operate, means that it’s time for major changes to the system.
The news that Barclays Bank, as well as other banks in the UK, mainland Europe and the US, have been ‘rigging’ the interest rate by which banks lend to each other, has shocked even those commentators who express little surprise at some aspects of the financial services industry says Titan.
The Libor rate is such a crucial measure says Titan that the implications of such dealings could reverberate around the market for years. Many financial deals are based on the Libor rate and if the various parties decide to now question key assumptions, then the courts could be kept busy for years. Plus, certain bank executives could find themselves facing personal charges of fraud and corruption.
Chief Executive Officer of Titan Business Insurance, Basil Tsapralis, said:
“This is a major development and a hugely worrying one. The actions of the Barclays dealers in what has been described as rigging the Libor rate, one of the most important benchmarks in the City, has devalued the whole sector.
“The Government now needs to listen carefully to clamors for change and further regulation for a system that maybe has gotten away with too much for too long. The system has got to be improved, if we are to have one that we can trust in going forward.”
Titan Business Insurance is one of the major players in the business broker market.