The Libor Scandal Claims Its First CEO

Barclays’s $455 million settlement with U.S. and U.K. regulators on June 27 offered the first glimpse of what banks may have to pay to resolve a global investigation of interest rate manipulation. The question now: Who’s next?

U.S. and U.K. regulators found that Barclays “systematically” attempted to rig the London interbank offered rate, Libor, and the euro interbank rate starting in 2005. The two-year probe, which involves regulators on three continents, has touched as many as 18 financial institutions, including Citigroup, Deutsche Bank, HSBC Holdings, JPMorgan Chase, and Royal Bank of Scotland Group. A dozen firms have fired or suspended traders in connection with internal probes looking at whether their employees tried to manipulate Libor.