Barclays' global ignominy proceeds apace. The UK-based banking corporation stood down this week from the UAE's Central Bank panel that fixes Eibor, the Emirates' interbank lending rate. This comes just two weeks after Barclays was given record fines of $453 million (Dh1.66 billion) by UK and US regulators for manipulating Libor, the London equivalent of Eibor, both in the run-up to the 2008 global financial crisis and in its aftermath.
The Barclays rate rigging that triggered the resignation of its chief executive Bob Diamond is part of a scandal that involves much of global banking and finance. Libor is made up of banks' daily estimates of their borrowing costs, which influences the costs at which they lend. As such, Libor serves as a benchmark for the borrowing and lending costs of mortgages, loans and derivatives that are worth more than $450 trillion worldwide.
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