Abstract
The purpose of this chapter is to describe the reputational impact of the Libor case on Barclays by outlining the ensuing process of rebuilding trust and implementing cultural changes. This chapter is organized as follows. First, we briefly describe the major elements of the Libor scandal, including the investigations, fines and regulatory actions. Then, we propose a focus on Barclays, the company that arguably experienced the most significant impact of the media scandal in 2012. In our case study, we describe the course of events that led Barclays into a reputational crisis, identify and describe the core elements of the restructuring concept. In closing, we consider the lessons learned from this series of events.
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Notes
- 1.
In April 2013, the FSA was replaced by two new regulatory bodies, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
- 2.
The term ‘Barclays’ refers both to “Barclays Plc Group” and to “Barclays Bank Plc”. For this chapter, we used documents published on the Barclays web site (http://www.barclays.com/) related to both Barclays Plc Group and to Barclays Bank Plc to obtain a complete picture of the company’s historical evolution.
- 3.
Automated keyword-based searches of online news archives in the media database Factiva reveal more than 4705 articles related to the words “Libor” and “manipulation”. The search was conducted in May 2015. The selected time period was “01/01/2008–08/05/2015”. Factiva provides a premier collection of the world’s top media outlets, web media, and trade and consumer publications, giving immediate access to thousands of sources in 28 languages from nearly 200 countries. The database contains 35 years of articles, analyst reports and tweets. The top news sources in Factiva include the Wall Street Journal, Dow Jones Newswires, the New York Times, the Sydney Morning Herald, South China Morning Post and Le Monde. See http://new.dowjones.com/factiva-sources/
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Carè, R. (2016). The Libor Case: A Focus on Barclays. In: Dell’Atti, S., Trotta, A. (eds) Managing Reputation in The Banking Industry. Springer, Cham. https://doi.org/10.1007/978-3-319-28256-5_3
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