Ethical finance case, master level

FINAL INDIVIDUAL ASSIGNMENT

BARCLAYS AND LIBOR SCANDAL

Assignment: Complete Part 1 and Part 2 individually…post response in DropBox no later than Tuesday June 7 at 5 pm.

PART 1 – Answer the following Questions:

1. London Inter-bank Offered Rate (“LIBOR”)

a. What is LIBOR?

b. What is LIBOR used for?

c. How widespread is the index?

d. What is the process of calculation?

2. Who is hurt and who benefits from the manipulation of LIBOR? Why do regulators and legal authorities care?

3. How did Barclays’s manipulate LIBOR? Why did they manipulate LIBOR?

4. Who were the people/parties responsible for the manipulation? Who was most responsible?

5. How should you respond when you know your competitors are cheating? How should you respond when you think regulators are asking you to cheat?

6. Why was Bob Diamond fired? Should he have been fired?

7. What is the latest on the LIBOR scandal? Which other institutions are now involved? Which institutions have been fined? Has any individual person(s) been indicted?

PART 2 - Use the EAF to evaluate the ethical issues that arise. Where possible, answer the questions/issues raised in the EAF as applied to the case.