There have been deep suspicions for years about Libor (the London interbank offered rate), and the system used to set it. It has been clear in financial markets that Libor did not reflect real borrowing costs, because of the big discrepancy between Libor
In a good year, the outgoing chief executive – who resigned Tuesday- could be paid up to £20million – about 1,000 times more than a teller in a high street Barclays.
That's been the pattern of the past few years as Britain's establishment has lurched from the disaster of the Iraq war to the disgrace of parliamentary expense fiddling and media phone-hacking (though in the case of Iraq, the only heads to roll
Developed markets enjoyed a relief rally towards the end of last week, buoyed by an agreement reached at the latest EU summit, which allowed equities to end a disappointing second quarter on a positive note.
It will be interesting to see whether Barclays Bank publishes details of Mr Diamond’s termination package, of which all but £30,000 seems likely to be taxable at 50%.
Hopes and fears about the future of the eurozone continue to dominate investor sentiment and drive large swings in markets. While the sense of crisis may ease following the EU summit at the end of June, there are still lots of details to be worked through