Serious Fraud Office to probe Barclays scandal

Britain’s Serious Fraud Office (SFO) said on Friday it would formally investigate a bank rate-fixing scandal which has led to the resignation of three top Barclays executives. “The SFO director David Green QC has today decided formally to accept the Libor matter for investigation,” the independent government department said in a statement.

Libor (London Interbank Offered Rate), the rate at which banks lend to one another, is a flagship London instrument used as an interest benchmark throughout the world. It plays a key role in global markets, affecting what banks, businesses and individuals pay to borrow money.

Last week, Barclays was fined 290 million ($452 million, 360 million euros) by British and US regulators for the attempted rigging of Libor and Euribor, its eurozone equivalent.

The SFO’s announcement came two days after Barclays’ former chief executive Bob Diamond appeared before a parliamentary committee.